<HTML>
<HEAD>
<TITLE>sv1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->

<!-- XBRL,dc -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt; color: #E8112D">As filed with
    the Securities and Exchange Commission on March&#160;24,
    2010</FONT></B>
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt"><!-- /XBRL,dc --><B>Registration
    <FONT style="white-space: nowrap">No.&#160;333-&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B>
    </FONT>
</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 13pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 11pt">Washington,&#160;D.C.
    20549</FONT></B>
</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 17pt"><FONT style="white-space: nowrap">Form&#160;S-1</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">REGISTRATION STATEMENT</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">UNDER</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">THE SECURITIES ACT OF
    1933</FONT></B>
</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 20pt">Oxford Resource Partners,
    LP</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Exact Name of Registrant as
    Specified in Its Charter)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <B>Delaware</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>1221</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>77-10695453</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(State or Other Jurisdiction of
    Incorporation or<BR>
    Organization)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(Primary Standard Industrial<BR>
    Classification Code Number)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(I.R.S. Employer Identification
    Number) </FONT></I>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">544 Chestnut Street</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">P.O.&#160;Box&#160;427</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Coshocton, OH 43812</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Phone:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 7pt">(Address, Including Zip Code,
    and Telephone Number,</FONT></I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 7pt">Including Area Code, of
    Registrant&#146;s Principal Executive Offices)</FONT></I>
</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Jeffrey M. Gutman</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Senior Vice President,</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Chief Financial Officer and
    Treasurer</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">544 Chestnut Street</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">P.O.&#160;Box&#160;427</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Coshocton, OH 43812</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">Phone:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 7pt">(Name, Address, Including Zip
    Code, and Telephone Number,</FONT></I>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 7pt">Including Area Code, of Agent
    for Service)</FONT></I>
</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I><FONT style="font-size: 9pt">Copies to:</FONT></I></B>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="49%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="center" valign="top">
    <B>William N. Finnegan IV<BR>
    Brett E. Braden<BR>
    </B>Latham&#160;&#038; Watkins LLP<BR>
    717 Texas Avenue, Suite&#160;1600<BR>
    Houston, Texas 77002<BR>
    <FONT style="white-space: nowrap">(713)&#160;546-5400</FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B>G. Michael O&#146;Leary<BR>
    William J. Cooper<BR>
    </B>Andrews Kurth LLP<BR>
    600 Travis, Suite 4200<BR>
    Houston, Texas 77002<BR>
    (713) 220-4200
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Approximate date of commencement of proposed sale to the
    public:</B>&#160;&#160;As soon as practicable after this
    Registration Statement becomes effective.
</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule&#160;415 under the Securities Act of 1933, check the
    following
    box.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is filed to register additional securities for an
    offering pursuant to Rule&#160;462(b) under the Securities Act,
    check the following box and list the Securities Act registration
    statement number of the earlier effective registration statement
    for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If this Form is a post-effective amendment filed pursuant to
    Rule&#160;462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 the definitions of
    &#147;large accelerated filer,&#148; &#147;accelerated
    filer&#148; and &#147;smaller reporting company&#148; in
    <FONT style="white-space: nowrap">Rule&#160;12b-2</FONT>
    of the Exchange Act. (Check one):
</DIV>

<DIV style="margin-top: 5pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times">Large
    accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times">
    Accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times">
    <FONT style="white-space: nowrap">Non-accelerated</FONT>
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT>
    </FONT></TD>
    <TD nowrap align="right">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times">
    Smaller reporting
    company&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
</TR>

</TABLE>



<DIV align="center" style="margin-left: 22%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt">(Do not check if a smaller
    reporting company)
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 9pt">CALCULATION OF REGISTRATION
    FEE</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Amount of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Aggregate Offering<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Registration<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Title of Securities to be Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Price<SUP style="font-size: 85%; vertical-align: top">(1)(2)</SUP></B>

</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Fee</B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom" style="border-top: 1px solid #000000">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Common units representing limited partner interests
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    250,000,000
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 1px solid #000000">
    17,825
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Includes common units issuable upon
    exercise of the underwriters&#146; option to purchase additional
    common units.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Estimated solely for the purpose of
    calculating the registration fee pursuant to Rule&#160;457(o).
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section&#160;8(a)
    of the Securities Act of 1933 or until the Registration
    Statement shall become effective on such date as the Securities
    and Exchange Commission, acting pursuant to said
    Section&#160;8(a), may determine</B>.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD>
<B><FONT style="font-size: 10pt; font-family: Arial, Helvetica; color: #E8112D">The
information in this preliminary prospectus is not complete and
may be changed. We may not sell these securities until the
registration statement filed with the Securities and Exchange
Commission is effective. This preliminary prospectus is not an
offer to sell these securities and it is not soliciting an offer
to buy these securities in any state where the offer or sale is
not permitted.<BR>
</FONT></B>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica; color: #E8112D">Subject
    to Completion, dated March 24, 2010</FONT></B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 12pt; font-family: Arial, Helvetica; font-variant: SMALL-CAPS">PROSPECTUS
    </FONT>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h69756h6975605.gif" alt="Oxford LOGO"><FONT style="font-size: 12pt; font-family: Arial, Helvetica">
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt; font-family: Arial, Helvetica">Oxford
    Resource Partners, LP</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 14pt; font-family: Arial, Helvetica">Common
    Units
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 14pt; font-family: Arial, Helvetica">Representing
    Limited Partner Interests
    </FONT>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">This is the initial
    public offering of our common units. We are
    offering&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units in this offering. No public market currently exists for
    our common units.
    </FONT>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">We intend to apply
    to list our common units on the New York Stock Exchange under
    the symbol &#147;OXF.&#148;
    </FONT>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">We anticipate the
    initial public offering price to be between
    $&#160;&#160;&#160;&#160;&#160; and
    $&#160;&#160;&#160;&#160;&#160; per common unit.
    </FONT>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-family: Arial, Helvetica">Investing in our
    common units involves risks. See &#147;Risk Factors&#148;
    beginning on page&#160;19 of this prospectus.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">These risks include
    the following:
    </FONT>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Arial, Helvetica">&#149;&#160;&#160;&#160;&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-family: Arial, Helvetica">We may not have
    sufficient cash to enable us to pay the minimum quarterly
    distribution on our common units following the establishment of
    cash reserves by our general partner and the payment of costs
    and expenses, including reimbursement of expenses to our general
    partner.
    </FONT>
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Arial, Helvetica">&#149;&#160;&#160;&#160;&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-family: Arial, Helvetica">Our general partner
    and its affiliates have conflicts of interest, and their limited
    fiduciary duties to our unitholders may permit them to favor
    their own interests to the detriment of our unitholders.
    </FONT>
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Arial, Helvetica">&#149;&#160;&#160;&#160;&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-family: Arial, Helvetica">Decreases in demand
    for electricity and changes in coal consumption patterns of
    U.S.&#160;electric power generators could adversely affect our
    business.
    </FONT>
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Arial, Helvetica">&#149;&#160;&#160;&#160;&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-family: Arial, Helvetica">New and future
    regulatory requirements limiting greenhouse gas emissions could
    adversely affect coal-fired power generation and reduce the
    demand for coal as a fuel source, which could cause the price
    and quantity of the coal we sell to decline materially.
    </FONT>
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Arial, Helvetica">&#149;&#160;&#160;&#160;&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-family: Arial, Helvetica">Existing and future
    regulatory requirements relating to sulfur dioxide and other air
    emissions could affect our customers and could reduce the demand
    for the high-sulfur coal we produce and cause coal prices and
    sales of our high-sulfur coal to decline materially.
    </FONT>
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Arial, Helvetica">&#149;&#160;&#160;&#160;&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-family: Arial, Helvetica">Competition within
    the coal industry may materially and adversely affect our
    ability to sell coal at an acceptable price.
    </FONT>
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Arial, Helvetica">&#149;&#160;&#160;&#160;&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-family: Arial, Helvetica">We depend on a
    limited number of customers for a significant portion of our
    revenues, and the loss of, or significant reduction in,
    purchases by any of them could adversely affect our results of
    operations and cash available for distribution to our
    unitholders.
    </FONT>
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Arial, Helvetica">&#149;&#160;&#160;&#160;&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-family: Arial, Helvetica">Our inability to
    acquire additional coal reserves that are economically
    recoverable may have a material adverse effect on our future
    profitability and growth.
    </FONT>
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Arial, Helvetica">&#149;&#160;&#160;&#160;&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-family: Arial, Helvetica">Our unitholders have
    limited voting rights and are not entitled to elect our general
    partner or its directors or initially to remove our general
    partner without its consent.
    </FONT>
</TD>
</TR>

<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    <FONT style="font-family: Arial, Helvetica">&#149;&#160;&#160;&#160;&#160;
    </FONT>
</TD>
    <TD align="left">    <FONT style="font-family: Arial, Helvetica">Our unitholders will
    be required to pay taxes on their share of our income even if
    they do not receive any cash distributions from us.
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt; font-family: Arial, Helvetica">Per
    Common Unit</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt; font-family: Arial, Helvetica">Total</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom" style="font-family: Arial, Helvetica">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Public Offering Price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom" style="font-family: Arial, Helvetica">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom" style="font-family: Arial, Helvetica">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="font-family: Arial, Helvetica">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Underwriting Discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-family: Arial, Helvetica">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-family: Arial, Helvetica">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="font-family: Arial, Helvetica">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proceeds to us (before expenses)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="font-family: Arial, Helvetica">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="font-family: Arial, Helvetica">

</TD>
<TD nowrap align="left" valign="bottom" style="font-family: Arial, Helvetica">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">We have granted the
    underwriters a
    <FONT style="white-space: nowrap">30-day</FONT>
    option to purchase up to an
    additional&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units on the same terms and conditions set forth above if the
    underwriters sell more
    than&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common units
    in this offering.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">Neither the
    Securities and Exchange Commission nor any state securities
    commission has approved or disapproved of these securities or
    passed upon the accuracy or adequacy of this prospectus. Any
    representation to the contrary is a criminal offense.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">Barclays Capital, on
    behalf of the underwriters, expects to deliver the common units
    on or
    about&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010.
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 18pt; font-family: Arial, Helvetica">Barclays
    Capital</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 18pt; font-family: Arial, Helvetica">
    Citi</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">Prospectus
    dated&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010
    </FONT>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">[ARTWORK
    TO COME]</FONT></B>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>SUMMARY</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#102'>Oxford Resource Partners, LP</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#103'>Business Strategies</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#104'>Competitive Strengths</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#105'>Recent Coal Market Conditions and Trends</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#106'>Our History</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#107'>Our Sponsors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#108'>Summary of Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#109'>The Transactions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#110'>Organizational Structure</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#111'>Management and Ownership</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#112'>Principal Executive Offices</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#113'>Summary of Conflicts of Interest and Fiduciary
    Duties</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#114'>The Offering</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#115'>Summary Historical and Pro Forma Consolidated
    Financial and Operating Data</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'>RISK FACTORS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#117'>Risks Related to Our Business</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#118'>Risks Inherent in an Investment in Us</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#119'>Tax Risks</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'>USE OF PROCEEDS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#121'>CAPITALIZATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#122'>DILUTION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#123'>CASH DISTRIBUTION POLICY AND RESTRICTIONS ON
    DISTRIBUTIONS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#124'>General</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#125'>Minimum Quarterly Distribution Rate</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#126'>Historical and Forecasted Results of Operations
    and Cash Available for Distribution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#127'>Significant Forecast Assumptions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#128'>HOW WE MAKE CASH DISTRIBUTIONS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#129'>Distributions of Available Cash</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#130'>Operating Surplus and Capital Surplus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#131'>Subordination Period</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#132'>General Partner Interest and Incentive
    Distribution Rights</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#133'>Percentage Allocations of Available Cash from
    Operating Surplus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#134'>General Partner&#146;s Right to Reset Incentive
    Distribution Levels</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#135'>Distributions from Capital Surplus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#136'>Adjustment to the Minimum Quarterly Distribution
    and Target Distribution Levels</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#137'>Distributions of Cash Upon Liquidation</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#138'>SELECTED HISTORICAL AND PRO FORMA CONSOLIDATED
    FINANCIAL AND OPERATING DATA</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#139'>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF
    FINANCIAL CONDITION AND RESULTS OF OPERATIONS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#140'>Overview</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#141'>Evaluating Our Results of Operations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#142'>Factors that Impact Our Business</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#143'>Recent Trends and Economic Factors Affecting the
    Coal Industry</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#144'>Results of Operations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#145'>Liquidity and Capital Resources</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    i
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#146'>Critical Accounting Policies and Estimates</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#147'>Quantitative and Qualitative Disclosures about
    Market Risk</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#148'>Seasonality</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#149'>THE COAL INDUSTRY</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#150'>Introduction</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#151'>Industry Trends</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#152'>Coal Consumption and Demand</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#263'>U.S. Scrubber Market</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#264'>Coal Consumption in Our Primary Market Area</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#153'>U.S. Coal Production</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    94
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#155'>Coal Mining Methods</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    96
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#156'>Coal Quality Characteristics</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#157'>Transportation</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#265'>Special Note Regarding the EIA&#146;s Market Data
    and Projections</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#158'>BUSINESS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    99
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#159'>Overview</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    99
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#160'>Business Strategies</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    101
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#161'>Competitive Strengths</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#162'>Our History</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#163'>Our Sponsors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#164'>Mining Operations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#165'>Coal Reserves</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#166'>Reclamation</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    110
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#167'>Limestone</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#168'>Other Operations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#169'>Customers</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#170'>Suppliers</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#171'>Competition</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#172'>Regulation and Laws</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#173'>Office Facilities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#174'>Employees</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#175'>Legal Proceedings</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#176'>MANAGEMENT</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#178'>Compensation Discussion and Analysis</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#179'>Grants of Plan-Based Awards for 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    137
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#180'>Outstanding Equity-Based Awards at
    December&#160;31, 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    137
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#181'>Units Vested in 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#182'>Pension Benefits</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#183'>Nonqualified Deferred Compensation</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#184'>Potential Payment Upon Termination or Change in
    Control</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    139
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#185'>Long-Term Incentive Plan</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    140
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#186'>Retirement Plan</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    140
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#187'>Compensation of Directors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    141
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#188'>Director Compensation Table for 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    141
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#189'>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
    AND MANAGEMENT</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#190'>CERTAIN RELATIONSHIPS AND RELATED PARTY
    TRANSACTIONS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    144
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#191'>Distributions and Payments to Our General Partner
    and Its Affiliates</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    144
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#192'>Ownership Interests of Certain Executive Officers
    and Directors of Our General Partner</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#193'>Advisory Services Agreement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    ii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#194'>Administrative and Operational Services
    Agreement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#195'>Contribution Agreements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    146
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#196'>Investors&#146; Rights Agreement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    146
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#197'>Tunnel Hill Partners, LP</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    147
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#266'>Policies and Procedures for Review and Approval
    of Related Party Transactions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    147
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#198'>CONFLICTS OF INTEREST AND FIDUCIARY DUTIES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    148
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#199'>Conflicts of Interest</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    148
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#200'>Fiduciary Duties</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    153
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#201'>DESCRIPTION OF THE COMMON UNITS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    156
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#202'>The Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    156
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#203'>Transfer Agent and Registrar</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    156
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#204'>Transfer of Common Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    156
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#205'>THE PARTNERSHIP AGREEMENT</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    158
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#206'>Organization and Duration</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    158
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#207'>Purpose</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    158
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#208'>Power of Attorney</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    158
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#209'>Capital Contributions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    158
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#210'>Voting Rights</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    159
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#211'>Limited Liability</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    159
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#212'>Issuance of Additional Securities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    160
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#213'>Amendment of Our Partnership Agreement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    161
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#214'>Merger, Sale or Other Disposition of Assets</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    163
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#215'>Termination and Dissolution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    163
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#216'>Liquidation and Distribution of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    164
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#217'>Withdrawal or Removal of Our General Partner</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    164
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#218'>Transfer of General Partner Interest</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    165
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#219'>Transfer of Ownership Interests in Our General
    Partner</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    165
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#220'>Transfer of Incentive Distribution Rights</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    165
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#221'>Change of Management Provisions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    165
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#222'>Limited Call Right</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#223'>Meetings; Voting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#224'>Status as Limited Partner or Assignee</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#225'>Non-Citizen Assignees; Redemption</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#226'>Indemnification</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    168
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#227'>Reimbursement of Expenses</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    168
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#228'>Books and Reports</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    168
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#229'>Right to Inspect Our Books and Records</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    169
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#230'>Registration Rights</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    169
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#231'>UNITS ELIGIBLE FOR FUTURE SALE</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#232'>MATERIAL FEDERAL INCOME TAX CONSEQUENCES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    171
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#233'>Partnership Status</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    171
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#234'>Limited Partner Status</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    173
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#235'>Tax Consequences of Unit Ownership</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    173
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#236'>Tax Treatment of Operations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    178
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#237'>Disposition of Common Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    182
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#238'>Uniformity of Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    184
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#239'>Tax-Exempt Organizations and Other Investors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    185
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#240'>Administrative Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    185
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#267'>Recent Legislative Developments</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    188
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    iii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#241'>State, Local, Foreign and Other Tax
    Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    188
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#242'>INVESTMENT IN OXFORD RESOURCE PARTNERS, LP BY
    EMPLOYEE BENEFIT PLANS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    189
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#243'>UNDERWRITING</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    191
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#244'>Commissions and Expenses</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    191
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#245'>Option to Purchase Additional Common Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    191
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#246'><FONT style="white-space: nowrap">Lock-Up</FONT>
    Agreements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    192
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#247'>Offering Price Determination</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    192
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#248'>Indemnification</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    193
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#249'>Directed Unit Program</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    193
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#250'>Stabilization, Short Positions and Penalty
    Bids</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    193
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#251'>Electronic Distribution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    194
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#252'>New York Stock Exchange</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    194
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#253'>Discretionary Sales</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    194
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#254'>Stamp Taxes</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    194
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#255'>Relationships/FINRA Conduct Rules</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    194
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#268'>Selling Restrictions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    195
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#256'>VALIDITY OF THE COMMON UNITS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    197
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#257'>EXPERTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    197
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#258'>WHERE YOU CAN FIND MORE INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    197
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#259'>FORWARD-LOOKING STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    198
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#260'>INDEX TO FINANCIAL STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#261'>APPENDIX&#160;A Third Amended and Restated
    Agreement of Limited Partnership of Oxford Resource Partners,
    LP</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#262'>APPENDIX&#160;B Glossary of Terms</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    B-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h69756exv3w1.htm">EX-3.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h69756exv21w1.htm">EX-21.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h69756exv23w1.htm">EX-23.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h69756exv23w2.htm">EX-23.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h69756exv23w3.htm">EX-23.3</A></FONT></TD></TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You should rely only on the information contained in this
    prospectus, any free writing prospectus prepared by or on behalf
    of us or any other information to which we have referred you in
    connection with this offering. We have not, and the underwriters
    have not, authorized any other person to provide you with
    information different from that contained in this prospectus.
    Neither the delivery of this prospectus nor the sale of common
    units means that information contained in this prospectus is
    correct after the date of this prospectus. This prospectus is
    not an offer to sell or the solicitation of an offer to buy the
    common units in any circumstances under which the offer or
    solicitation is unlawful.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Until&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010 (25&#160;days after the date of this prospectus), all
    dealers that buy, sell or trade our common units, whether or not
    participating in this offering, may be required to deliver a
    prospectus. This is in addition to the dealers&#146; obligation
    to deliver a prospectus when acting as underwriters and with
    respect to their unsold allotments or subscriptions.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    iv
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>This summary highlights information contained elsewhere in
    this prospectus. You should read the entire prospectus
    carefully, including the historical and pro forma consolidated
    financial statements and the notes to those financial
    statements, before purchasing our common units. The information
    presented in this prospectus assumes that the underwriters&#146;
    option to purchase additional common units is not exercised
    unless otherwise noted. You should read &#147;Risk Factors&#148;
    beginning on page&#160;19 for information about important risks
    that you should consider before purchasing our common units.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Market and industry data and certain other statistical data
    used throughout this prospectus are based on independent
    industry publications, government publications and other
    published independent sources. In this prospectus, we refer to
    information regarding the coal industry in the United States and
    internationally that was obtained from the U.S.&#160;Department
    of Energy&#146;s Energy Information Administration, or the EIA,
    John&#160;T.&#160;Boyd Company and the U.S.&#160;Mine Safety and
    Health Administration, or MSHA. These organizations are not
    affiliated with&#160;us.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>References in this prospectus to &#147;Oxford Resource
    Partners, LP,&#148; &#147;we,&#148; &#147;our,&#148;
    &#147;us&#148; or like terms refer to Oxford Resource Partners,
    LP and its subsidiaries, including our wholly owned subsidiary,
    Oxford Mining Company, LLC, which is also our accounting
    predecessor. References to &#147;Oxford Resources GP&#148; or
    &#147;our general partner&#148; refer to Oxford Resources GP,
    LLC. We include a glossary of some of the terms used in this
    prospectus as <U>Appendix&#160;B</U></I>.
</DIV>

<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Oxford
    Resource Partners, LP</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a low cost producer of high value steam coal, and we are
    the largest producer of surface mined coal in Ohio. We focus on
    acquiring steam coal reserves that we can efficiently mine with
    our modern, large scale equipment. Our reserves and operations
    are strategically located in Northern Appalachia and the
    Illinois Basin to serve our primary market area of Illinois,
    Indiana, Kentucky, Ohio, Pennsylvania and West Virginia. We
    market our coal primarily to large utilities with coal-fired,
    base-load scrubbed power plants under long-term coal sales
    contracts. We believe that we will experience increased demand
    for our high-sulfur coal from power plants that have or will
    install scrubbers. Currently, there is over 54,500 megawatts of
    scrubbed base-load electric generating capacity in our primary
    market area and plans have been announced to add over 18,400
    megawatts of additional scrubbed capacity by the end of 2017. We
    also believe that we will experience increased demand for our
    coal from power plants that use coal from Central Appalachia as
    production in that region continues to decline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently have 19 active surface mines that are managed as
    eight mining complexes. During the fourth quarter of 2009, our
    largest mine represented 12.5% of our coal production. This
    diversity reduces the risk that operational issues at any one
    mine will have a material impact on our business or our results
    of operations. Consistent coal quality across many of our mines
    and the mobility of our equipment fleet allows us to reliably
    serve our customers from multiple mining complexes while
    optimizing our mining plan. Our operations also include two
    river terminals, strategically located in eastern Ohio and
    western Kentucky, that further enhance our ability to supply
    coal to our customers with river access from multiple mines.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We produced 5.8&#160;million tons of coal during 2009, including
    0.4&#160;million tons produced from the reserves we acquired in
    western Kentucky from Phoenix Coal on September&#160;30, 2009.
    As a result of this acquisition, our coal production during the
    fourth quarter of 2009 was 1.8&#160;million tons, or
    7.2&#160;million tons on an annualized basis. During 2009, we
    sold 6.3&#160;million tons of coal, including 0.5&#160;million
    tons of purchased coal. We currently have long-term coal sales
    contracts in place for 2010, 2011, 2012 and 2013 that represent
    97.2%, 93.0%, 71.4% and 39.7%, respectively, of our 2010
    estimated coal sales of 8.5&#160;million tons. Members of our
    senior management team have long-standing relationships within
    our industry, and we believe those relationships will allow us
    to continue to obtain long-term contracts for our coal
    production that will continue to provide us with a reliable and
    stable revenue base.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we controlled 91.6&#160;million
    tons of proven and probable coal reserves, of which
    68.6&#160;million tons were associated with our surface mining
    operations and the remaining 23.0&#160;million tons
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    consisted of underground coal reserves that we have subleased to
    a third party in exchange for an overriding royalty.
    Historically, we have been successful at replacing the reserves
    depleted by our annual production and growing our reserve base
    by acquiring reserves with low operational, geologic and
    regulatory risks and that were located near our mining
    operations or that otherwise had the potential to serve our
    primary market area. Over the last five years, we have produced
    23.6&#160;million tons of coal and acquired 52.9&#160;million
    tons of proven and probable coal reserves, including
    24.6&#160;million tons of coal reserves that we acquired in
    connection with the Phoenix Coal acquisition. We believe that
    our existing relationships with owners of large reserve blocks
    and our position as the largest producer of surface mined coal
    in Ohio will allow us to continue to acquire reserves in the
    future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2009, we generated revenues
    of approximately $293.8&#160;million, net income attributable to
    our unitholders of approximately $23.5&#160;million and Adjusted
    EBITDA of approximately $50.8&#160;million. Please read
    &#147;Selected Historical and Pro Forma Consolidated Financial
    and Operating Data&#148; for our definition of Adjusted EBITDA
    and a reconciliation of Adjusted EBITDA to net income (loss)
    attributable to our unitholders. The following table summarizes
    our mining complexes, our coal production for the year ended
    December&#160;31, 2009 and our coal reserves as of
    December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Production for the <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="13" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31, 2009</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Proven &#038;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Primary<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Probable<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Sulfur<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Transportation<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Mining Complexes</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Reserves<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Heat Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Content</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Methods</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Btu/lb)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(%)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in million tons)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Surface Mining Operations:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <I>Northern Appalachia (principally Ohio)</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Cadiz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,520
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Barge, Rail
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Tuscarawas County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Truck
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Belmont County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Barge
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Plainfield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Truck
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    New Lexington
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Rail
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Harrison<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,040
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    Barge, Rail, Truck
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Noble County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,230
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Barge, Truck
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <I>Illinois Basin (Kentucky)</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Muhlenberg
    County<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,295
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Barge, Truck
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    <B>Total Surface Mining Operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Underground Coal Reserves:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <I>Northern Appalachia (Ohio)</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Tusky<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    <B>Total Underground Coal Reserves</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Reported as recoverable coal reserves, which is the portion of
    the coal that could be economically and legally extracted or
    produced at the time of the reserve determination, taking into
    account mining recovery and preparation plant yield. For
    definitions of proven coal reserves, probable coal reserves and
    recoverable coal reserves, please read
    &#147;Business&#160;&#151; Coal Reserves.&#148;</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    The Harrison mining complex is owned by Harrison Resources, LLC,
    our joint venture with CONSOL Energy, Inc. We own 51% of
    Harrison Resources and CONSOL Energy owns the remaining 49%
    through one of its subsidiaries. Because the results of
    operations of Harrison Resources are included in our
    consolidated financial statements for the year ended
    December&#160;31, 2009 as required by U.S. generally accepted
    accounting principles, or GAAP, coal production and proven and
    probable coal reserves attributable to the Harrison mining
    complex are presented on a gross basis assuming we owned 100% of
    Harrison Resources. Please read &#147;Business&#160;&#151;
    Mining Operations&#160;&#151; Northern Appalachia&#160;&#151;
    Harrison Mining Complex.&#148;</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Acquired from Phoenix Coal on September&#160;30, 2009. As a
    result, production data represents production from the date of
    acquisition though December&#160;31, 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Please read &#147;Business&#160;&#151; Coal Reserves&#160;&#151;
    Underground Coal Reserves&#148; for more information about our
    underground coal reserves at the Tusky mining complex, which we
    have subleased to a third party mining company in exchange for
    an overriding royalty. During 2009, we received royalty payments
    on 0.6&#160;million tons of coal produced from the Tusky mining
    complex.</TD>
</TR>

</TABLE>

<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Business
    Strategies</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our primary business objective is to maintain and, over time,
    increase our cash available for distribution by executing the
    following strategies:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Increasing coal sales to large utilities with coal-fired,
    base-load scrubbed power plants in our primary market
    area</I>.&#160;&#160;In 2009, approximately 69% of the total
    electricity generated in our primary market area was generated
    by coal-fired power plants, compared to approximately 38% for
    the rest of the United States. We intend to continue to focus on
    marketing coal to large utilities with coal-fired, base-load
    scrubbed power plants in our primary market area of Illinois,
    Indiana, Kentucky, Ohio, Pennsylvania and West Virginia.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Maximizing profitability by maintaining highly efficient,
    diverse and low cost surface mining
    operations</I>.&#160;&#160;We intend to focus on lowering costs
    and improving the productivity of our operations. We believe our
    focus on efficient surface mining practices results in our cash
    costs being among the lowest of our peers in Northern
    Appalachia, which we believe will allow us to compete
    effectively, especially during periods of declining coal prices.
    We are in the process of implementing the same mining practices
    that we currently use in Ohio at the mines that we recently
    acquired as a part of the Phoenix Coal acquisition.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Generating stable revenue by entering into long-term coal
    sales contracts.</I>&#160;&#160;We intend to continue to enter
    into long-term coal sales contracts for substantially all of our
    annual coal production, which will reduce our exposure to
    fluctuations in market prices.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Continuing to grow our reserve base and production
    capacity</I>.&#160;&#160;We intend to continue to grow our
    reserve base by acquiring reserves with low operational,
    geologic and regulatory risks that we can mine economically and
    that are located near our mining operations or otherwise have
    the potential to serve our primary market area. We intend to
    continue to grow our production capacity by expanding our fleet
    of large scale equipment and opening new mines as our sales
    commitments increase over time.
</TD>
</TR>

</TABLE>

<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Competitive
    Strengths</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe the following competitive strengths will enable us to
    execute our business strategies successfully:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>We have an attractive portfolio of long-term coal sales
    contracts.</I>&#160;&#160;We believe our long-term coal sales
    contracts provide us with a reliable and stable revenue base. We
    currently have long-term coal sales contracts in place for 2010,
    2011, 2012 and 2013 that represent 97.2%, 93.0%, 71.4% and
    39.7%, respectively, of our 2010 estimated coal sales of
    8.5&#160;million tons.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>We have a successful history of growing our reserve base and
    production capacity</I>.&#160;&#160;Historically, we have been
    successful at replacing the reserves depleted by our annual
    production and growing our reserve base by acquiring reserves
    with low operational, geologic and regulatory risks and that are
    located near our mining operations or that otherwise have the
    potential to serve our primary market area. We have also been
    successful in growing our production capacity by expanding our
    fleet of large scale equipment and opening new mines to meet our
    sales commitments. Over the last five years, we have produced
    23.6&#160;million tons of coal and acquired 52.9&#160;million
    tons of proven and probable coal reserves, including
    24.6&#160;million tons of coal reserves that we acquired in
    connection with the Phoenix Coal acquisition.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Our mining operations are flexible and
    diverse</I>.&#160;&#160;During the fourth quarter of 2009, our
    largest mine represented 12.5% of our coal production. We
    currently have 19 active surface mines that are managed as eight
    mining complexes. Consistent coal quality across many of our
    mines and the mobility of our equipment fleet allows us to
    reliably serve our customers from multiple mining complexes
    while optimizing our mining plan.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>We are a low cost producer of coal</I>.&#160;&#160;We use
    efficient mining practices that take advantage of economies of
    scale and reduce our operating costs per ton. Our use of large
    scale equipment, our good labor relations with our non-union
    workforce, our employees&#146; expertise and knowledge of our
    mining practices, our low level of legacy liabilities and our
    history of acquiring reserves without large up-front capital
    investments have positioned us as one of the lowest cash cost
    coal producers in Northern Appalachia.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Both production of, and demand for, the coal we produce are
    expected to increase in our primary market
    area</I>.&#160;&#160;According to the EIA, production of coal in
    Northern Appalachia and the Illinois Basin is expected to
    increase by 29.2% and 33.1% through 2015, respectively. This
    expected increase is attributable to anticipated increases in
    demand for high-sulfur coal from scrubbed power plants and from
    consumers of Central Appalachia coal as production in that
    region continues to decline.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Our senior management team and key operational employees have
    extensive industry experience</I>.&#160;&#160;The members of our
    senior management team have, on average, 24&#160;years of
    experience in the coal industry and have a track record of
    acquiring, building and operating businesses profitably and
    safely.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>We have a strong safety and environmental
    record.</I>&#160;&#160;We operate some of the industry&#146;s
    safest mines. From 2006 through 2009, our MSHA reportable
    incident rate was on average 14.4% lower than the rate for all
    surface coal mines in the United States. We have won numerous
    awards for our strong safety and environmental record.
</TD>
</TR>

</TABLE>

<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recent
    Coal Market Conditions and Trends</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal consumption and production in the United States have been
    driven in recent periods by several market dynamics and trends.
    The recent global economic downturn has negatively impacted coal
    demand in the short-term, but long-term projections for coal
    demand remain positive.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Favorable long-term outlook for U.S.&#160;steam coal
    market</I>.&#160;&#160;Although domestic coal consumption
    declined in 2009 due to the global economic downturn, the EIA
    forecasts that domestic coal consumption will increase by 14.4%
    through 2015 and by 32.2% through 2035, primarily due to the
    projected continued growth in coal-fired electric power
    generation demand.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Increase in coal production in Northern Appalachia and in the
    Illinois Basin.</I>&#160;&#160;According to the EIA, coal
    production in Northern Appalachia and the Illinois Basin is
    expected to grow by 29.2% and 33.1%, respectively, through 2015
    and by 35.7% and 42.8%, respectively, through 2035.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Decline in coal production in Central
    Appalachia</I>.&#160;&#160;The EIA forecasts that coal
    production in Central Appalachia, the nation&#146;s second
    largest coal production area, will decline by 34.5% through 2015
    and by 54.1% through 2035. This decline will be offset by
    production from other U.S. regions, including Northern
    Appalachia and the Illinois Basin.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Expected near-term increases in international demand for
    U.S.&#160;coal exports</I>.&#160;&#160;Although down from the
    previous year, U.S.&#160;exports began to increase in the second
    half of 2009, supported by recovering global economies and
    continued rapid growth in electric power generation and steel
    production capacity in Asia, particularly in China and India.
    Also, increased international demand for higher priced
    metallurgical coal has resulted in certain coal from Central
    Appalachia and Northern Appalachia, which can serve as either
    metallurgical or steam coal, being drawn into the metallurgical
    coal export market, which further reduces supplies of steam coal
    from this region for domestic consumption.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Development of new coal-related technologies will lead to
    increased demand for coal</I>.&#160;&#160;The EIA projects that
    new
    <FONT style="white-space: nowrap">coal-to-liquids</FONT>
    plants will account for 32&#160;million tons of annual coal
    demand in ten years and that amount will more than double to
    68&#160;million tons by 2035. In addition, through the American
    Recovery and Reinstatement Act, or ARRA, the
    U.S.&#160;government has targeted over $1.5 billion to carbon
    capture and sequestration, or CCS, research and another
    $800&#160;million for the Clean Coal Power Initiative, a
    ten-year program supporting commercial application of CCS
    technology.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Increasingly stringent air quality legislation will continue
    to impact the demand for coal</I>.&#160;&#160;A series of more
    stringent requirements related to particulate matter, ozone,
    mercury, sulfur dioxide, nitrogen oxide, carbon dioxide and
    other air emissions have been proposed or enacted by federal or
    state regulatory authorities in recent years. Considerable
    uncertainty is associated with these air quality regulations,
    some of which have been the subject of legal challenges in
    courts, and the actual timing of implementation remains
    uncertain.
</TD>
</TR>

</TABLE>

<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    History</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a Delaware limited partnership that was formed in August
    2007 by American Infrastructure MLP Fund, L.P. and our founders,
    Charles C. Ungurean, the President and Chief Executive Officer
    of our general partner and a member of the board of directors of
    our general partner, and Thomas T. Ungurean, the Senior Vice
    President, Equipment, Procurement and Maintenance of our general
    partner. Each of our two founders has over 37&#160;years of
    experience in the coal mining industry. In connection with our
    formation, our founders contributed all of their interests in
    Oxford Mining Company to us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our founders formed Oxford Mining Company in 1985 to provide
    contract mining services to a mining division of a major oil
    company. In 1989, our founders transitioned Oxford Mining
    Company from a contract miner into a producer of its own coal
    reserves. In January 2007, Oxford Mining Company entered into a
    joint venture, Harrison Resources, with a subsidiary of CONSOL
    Energy to mine surface coal reserves purchased from CONSOL
    Energy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, we completed the acquisition of Phoenix
    Coal&#146;s active surface mining operations. The Phoenix Coal
    acquisition provided us with an entry into the Illinois Basin in
    western Kentucky and included one mining complex comprised of
    four mines as well as the Island river terminal on the Green
    River in western Kentucky. In connection with this acquisition,
    we increased our total proven and probable coal reserves by
    24.6&#160;million tons.
</DIV>

<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Sponsors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    American Infrastructure MLP Fund, L.P., together with its
    subsidiaries and affiliates, or AIM, is a private investment
    firm specializing in natural resources, infrastructure and real
    property. AIM, along with certain of the funds that AIM advises,
    indirectly owns all of the ownership interests in AIM Oxford
    Holdings, LLC, or AIM Oxford. Certain directors of our general
    partner are principals of AIM and have ownership interests in
    AIM. After completion of this offering, AIM Oxford will continue
    to hold 66.3% of the ownership interests in our general partner
    and will hold&#160;&#160;&#160;&#160;&#160;% of our common units
    and&#160;&#160;&#160;&#160;&#160;% of our subordinated units
    (&#160;&#160;&#160;&#160;&#160;% of our total units).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C&#038;T Coal, Inc., or C&#038;T Coal, is owned by our founders,
    Charles C. Ungurean and Thomas T. Ungurean. After completion of
    this offering, C&#038;T Coal will continue to hold 33.7% of the
    ownership interests in our general partner and will
    hold&#160;&#160;&#160;&#160;&#160;% of our common units
    and&#160;&#160;&#160;&#160;&#160;% of our subordinated units
    (&#160;&#160;&#160;&#160;&#160;% of our total units).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the contribution of Oxford Mining Company to
    us in August 2007, C&#038;T Coal, Charles C. Ungurean and Thomas
    T. Ungurean agreed that they would not compete with us in the
    coal mining business in Illinois, Kentucky, Ohio, Pennsylvania,
    West Virginia and Virginia. This non-compete agreement is in
    effect until August&#160;24, 2014.
</DIV>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    of Risk Factors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An investment in our common units involves risks associated with
    our business, our partnership structure and the tax
    characteristics of our common units. The following list of risk
    factors is not exhaustive. Please read &#147;Risk Factors&#148;
    beginning on page&#160;19 carefully for a more thorough
    description of these and other risks.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Our Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    We may not have sufficient cash to enable us to pay the minimum
    quarterly distribution on our common units following the
    establishment of cash reserves by our general partner and the
    payment of costs and expenses, including reimbursement of
    expenses to our general partner.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    The assumptions underlying the forecast of cash available for
    distribution that we include in &#147;Cash Distribution Policy
    and Restrictions on Distributions&#148; are inherently uncertain
    and subject to significant risks that could cause actual results
    to differ materially from those forecasted. If we do not achieve
    the forecasted results, we may not be able to pay the minimum
    quarterly distribution or any amount on our common units and the
    market price of our common units may decline materially.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Decreases in demand for electricity and changes in coal
    consumption patterns of U.S.&#160;electric power generators
    could adversely affect our business.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our long-term coal sales contracts subject us to renewal risks.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our inability to acquire additional coal reserves that are
    economically recoverable may have a material adverse effect on
    our future profitability and growth.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Competition within the coal industry may materially and
    adversely affect our ability to sell coal at an acceptable price.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    New and future regulatory requirements limiting greenhouse gas
    emissions could adversely affect coal-fired power generation and
    reduce the demand for coal as a fuel source, which could cause
    the price and quantity of the coal we sell to decline materially.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Existing and future regulatory requirements relating to sulfur
    dioxide and other air emissions could affect our customers and
    could reduce the demand for the high-sulfur coal we produce and
    cause coal prices and sales of our high-sulfur coal to decline
    materially.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our coal mining operations are subject to operating risks, which
    could result in materially increased operating expenses and
    decreased production levels and could have a material adverse
    effect on our business, financial condition or results of
    operations.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    We may not receive cash distributions from Harrison Resources in
    the future.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    We depend on a limited number of customers for a significant
    portion of our revenues, and the loss of, or significant
    reduction in, purchases by any of them could adversely affect
    our results of operations and cash available for distribution to
    our unitholders.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Inherent in an Investment in Us</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our partnership agreement limits our general partner&#146;s
    fiduciary duties to our unitholders and restricts the remedies
    available to our unitholders for actions taken by our general
    partner that might otherwise constitute breaches of fiduciary
    duty.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our general partner and its affiliates have conflicts of
    interest, and their limited fiduciary duties to our unitholders
    may permit them to favor their own interests to the detriment of
    our unitholders.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our unitholders have limited voting rights and are not entitled
    to elect our general partner or its directors or initially to
    remove our general partner without its consent.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our unitholders will experience immediate and substantial
    dilution of $&#160;&#160;&#160;&#160;&#160; per common unit.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    The control of our general partner may be transferred to a third
    party without unitholder consent.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Risks</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our tax treatment depends on our status as a partnership for
    federal income tax purposes. If the IRS were to treat us as a
    corporation for federal income tax purposes, which would subject
    us to entity-level taxation, then our cash available for
    distribution to our unitholders would be substantially reduced.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    If we were subjected to a material amount of additional
    entity-level taxation by individual states, it would reduce our
    cash available for distribution to our unitholders.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    The tax treatment of publicly traded partnerships or an
    investment in our common units could be subject to potential
    legislative, judicial or administrative changes and differing
    interpretations, possibly on a retroactive basis.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Certain federal income tax preferences currently available with
    respect to coal exploration and development may be eliminated in
    future legislation.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our unitholders will be required to pay taxes on their share of
    our income even if they do not receive any cash distributions
    from&#160;us.
</TD>
</TR>

</TABLE>

<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Transactions</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Immediately prior to the closing of this offering:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    We will distribute approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million of cash and
    accounts receivable to our general partner, C&#038;T Coal, AIM
    Oxford and the participants in the Oxford Resource Partners, LP
    <FONT style="white-space: nowrap">Long-Term</FONT>
    Incentive Plan, or our LTIP, pro rata, in accordance with their
    respective interests in&#160;us.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the closing of this offering, the following
    will occur:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    we will enter into a new credit facility;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner will convert its 2.0% general partner
    interest in us, represented
    by&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;general
    partner units,
    into&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    general partner units representing a 2.0% general partner
    interest in&#160;us;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    C&#038;T Coal will convert all of its Class&#160;B common units,
    representing a&#160;&#160;&#160;&#160;&#160;% limited partner
    interest in us, into:
    (i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units, representing a&#160;&#160;&#160;&#160;&#160;% limited
    partner interest in us, and
    (ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units, representing a&#160;&#160;&#160;&#160;&#160;% limited
    partner interest in&#160;us;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    AIM Oxford will convert all of its Class&#160;B common units,
    representing a&#160;&#160;&#160;&#160;&#160;% limited partner
    interest in us, into:
    (i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units, representing a&#160;&#160;&#160;&#160;&#160;% limited
    partner interest in us, and
    (ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units, representing a&#160;&#160;&#160;&#160;&#160;% limited
    partner interest in&#160;us;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the participants in our LTIP will receive a distribution
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units for each common unit they currently own, resulting
    in their ownership of an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units, representing an
    aggregate&#160;&#160;&#160;&#160;&#160;% limited partner
    interest in&#160;us;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    we will
    issue&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units to the public in this offering, representing an
    aggregate&#160;&#160;&#160;&#160;&#160;% limited partner
    interest in us;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    we will use the net proceeds from this offering and the net
    proceeds from borrowings under our new credit facility for the
    purposes set forth in &#147;Use of Proceeds.&#148;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Organizational
    Structure</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a simplified diagram of our ownership structure
    after giving effect to this offering and the related
    transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Public common units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interests of C&#038;T Coal, AIM Oxford and Oxford Resources GP:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common units held by C&#038;T Coal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Common units held by AIM Oxford
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Subordinated units held by C&#038;T Coal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Subordinated units held by AIM Oxford
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    General partner units held by Oxford Resources GP
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common units held by participants in our LTIP
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h69756h6975602.gif" alt="(FLOW CHART)">
</DIV>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Management
    and Ownership</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are managed and operated by the board of directors and
    executive officers of our general partner, Oxford Resources GP.
    Currently, and upon the consummation of this offering, C&#038;T
    Coal and AIM Oxford will own all of the ownership interests in
    our general partner. Our unitholders will not be entitled to
    elect our general partner or its directors or otherwise directly
    participate in our management or operation. Charles C. Ungurean,
    the President and Chief Executive Officer of our general partner
    and a member of the board of directors of our general partner,
    and Thomas T. Ungurean, the Senior Vice President, Equipment,
    Procurement and Maintenance of our general partner, own all of
    the equity interests in C&#038;T Coal. In addition, certain
    directors of our general partner are principals of AIM and have
    ownership interests in AIM. For information about the executive
    officers and directors of our general partner, please read
    &#147;Management.&#148; Our general partner will be liable, as
    general partner, for all of our debts (to the extent not paid
    from our assets), except for indebtedness or other obligations
    that are made specifically nonrecourse to it. Whenever possible,
    our general partner intends to cause us to incur indebtedness or
    other obligations that are nonrecourse to&#160;it.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to maintain operational flexibility, our operations
    will be conducted through, and our operating assets will be
    owned by, Oxford Mining Company and its subsidiaries. However,
    we, Oxford Mining Company and its subsidiaries do not have any
    employees. All of the employees that conduct our business are
    employed by our general partner, but we refer to these
    individuals in this prospectus as our employees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the consummation of this offering, our general partner
    and its affiliates will not receive any management fee or other
    compensation in connection with our general partner&#146;s
    management of our business, but will be reimbursed for expenses
    incurred on our behalf. These expenses include the costs of
    officer and director and other employee compensation and
    benefits properly allocable to us, and all other expenses
    necessary or appropriate for the conduct of our business and
    allocable to us. Our partnership agreement provides that our
    general partner will determine in good faith the expenses that
    are allocable to us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner owns general partner units representing a
    2.0% general partner interest in us, which entitles it to
    receive 2.0% of all the distributions we make. Our general
    partner also owns all of our incentive distribution rights,
    which will entitle it to increasing percentages, up to a maximum
    of 48%, of the cash we distribute in excess of
    $&#160;&#160;&#160;&#160;&#160; per unit per quarter, after the
    closing of our initial public offering. Please read
    &#147;Certain Relationships and Related Party Transactions.&#148;
</DIV>

<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Principal
    Executive Offices</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our principal executive offices are located at 544 Chestnut
    Street, Coshocton, Ohio 43812. Our phone number
    is&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;.
    Following the completion of this offering, our website will be
    located at
    <FONT style="white-space: nowrap">http://www.oxfordresources.com.</FONT>
    We expect to make our periodic reports and other information
    filed with or furnished to the SEC available, free of charge,
    through our website, as soon as reasonably practicable after
    those reports and other information are electronically filed
    with or furnished to the SEC. Information on our website or any
    other website is not incorporated by reference into this
    prospectus and does not constitute a part of this prospectus.
</DIV>

<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    of Conflicts of Interest and Fiduciary Duties</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General.</I>&#160;&#160;Our general partner and its directors
    and officers have a legal duty to manage us in a manner
    beneficial to our unitholders. This legal duty originates under
    state law in statutes and judicial decisions and is commonly
    referred to as a &#147;fiduciary duty.&#148; However, because
    our general partner is owned by C&#038;T Coal and AIM Oxford,
    the directors and officers of our general partner also have
    fiduciary duties to manage the business of our general partner
    in a manner beneficial to C&#038;T Coal and AIM Oxford. As a
    result, conflicts of interest may arise in the future between us
    and our unitholders, on the one hand, and our general partner
    and its affiliates, on the other hand. For a more detailed
    description of the conflicts of interest and fiduciary duties of
    our general partner, please read &#147;Conflicts of Interest and
    Fiduciary Duties.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Partnership Agreement Modifications of Fiduciary
    Duties.</I>&#160;&#160;Delaware law provides that Delaware
    limited partnerships may, in their partnership agreements,
    restrict or expand the fiduciary duties owed by the general
    partner to limited partners and the partnership. Our partnership
    agreement limits the liability of, and reduces the fiduciary
    duties owed by, our general partner and the directors and
    officers of our general partner to our unitholders. Our
    partnership agreement also restricts the remedies available to
    our unitholders for actions that might otherwise constitute
    breaches of fiduciary duty by our general partner and its
    directors and officers. By purchasing a common unit, our
    unitholders are treated as having consented to various actions
    contemplated in the partnership agreement and conflicts of
    interest that might otherwise be considered a breach of
    fiduciary or other duties under applicable law. Please read
    &#147;Conflicts of Interest and Fiduciary Duties&#160;&#151;
    Fiduciary Duties&#148; for a description of the fiduciary duties
    imposed on our general partner and its directors and officers by
    Delaware law, the material modifications of these duties
    contained in our partnership agreement and certain legal rights
    and remedies available to our unitholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a description of our other relationships with our
    affiliates, please read &#147;Certain Relationships and Related
    Party Transactions.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Offering</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Common units offered to the public</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units if the underwriters exercise their option to purchase
    additional common units in full.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Units outstanding after this offering</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units representing a&#160;&#160;&#160;&#160;&#160;% limited
    partner interest in us
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    subordinated units representing a&#160;&#160;&#160;&#160;&#160;%
    limited partner interest in us.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Our general partner will
    own&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    general partner units, representing a 2.0% general partner
    interest in us.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Use of proceeds</TD>
    <TD></TD>
    <TD valign="bottom">
    We intend to use the net proceeds from this offering of
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;million
    (based on the mid-point of the price range set forth on the
    cover page of this prospectus), after deducting underwriting
    discounts and commissions but before paying offering expenses,
    to (i)&#160;repay in full the outstanding balance under our
    existing credit facility, (ii)&#160;distribute approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million to C&#038;T Coal,
    (iii)&#160;distribute approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million to certain
    participants in our LTIP, (iv)&#160;pay offering expenses of
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;million and
    (v)&#160;replenish approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million of our working
    capital. We will use the proceeds from borrowings of
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;million under
    our new credit facility to (i)&#160;distribute approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million to AIM Oxford and
    (ii)&#160;pay fees and expenses relating to our new credit
    facility of approximately $&#160;&#160;&#160;&#160;&#160;.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    If the underwriters&#146; option to purchase additional common
    units is exercised in full, we will use the net proceeds to
    redeem from C&#038;T Coal and AIM Oxford a number of common
    units equal to the number of common units issued upon such
    exercise, at a price per common unit equal to the proceeds per
    common unit before expenses but after deducting underwriting
    discounts and commissions.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Please read &#147;Use of Proceeds.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Cash distributions</TD>
    <TD></TD>
    <TD valign="bottom">
    We intend to make a minimum quarterly distribution of
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    per common unit (or $&#160;&#160;&#160;&#160;&#160; per common
    unit on an annualized basis) to the extent we have sufficient
    cash after the establishment of cash reserves by our general
    partner and the payment of our costs and expenses, including
    reimbursement of expenses to our general partner and its
    affiliates.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Our ability to pay cash distributions at this minimum quarterly
    distribution rate is subject to various restrictions and other
    factors described in more detail under &#147;Cash Distribution
    Policy and Restrictions on Distributions.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We will adjust the minimum quarterly distribution for the period
    from the closing of this offering
    through&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010 based on the actual length of the period.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Our partnership agreement requires us to distribute all of our
    cash on hand at the end of each quarter after the payment of
    costs and </TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    expenses, less reserves established by our general partner. We
    refer to this cash as &#147;available cash,&#148; and we define
    its meaning in our partnership agreement, in &#147;How We Make
    Cash Distributions&#160;&#151; Distributions of Available
    Cash&#160;&#151; Definition of Available Cash&#148; and in the
    glossary of terms attached as <U>Appendix&#160;B</U>.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    In general, we will pay any cash distributions we make each
    quarter in the following manner:</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -19pt; margin-left: 19pt">
    &#149;&#160;&#160;&#160;&#160;<I>first</I>, 98% to the holders
    of common units and 2.0% to our general partner, until each
    common unit has received a minimum quarterly distribution of
    $&#160;&#160;&#160;&#160;&#160; plus any arrearages from prior
    quarters;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -19pt; margin-left: 19pt">
    &#149;&#160;&#160;&#160;&#160;<I>second</I>, 98% to the holders
    of subordinated units and 2.0% to our general partner, until
    each subordinated unit has received a minimum quarterly
    distribution of
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;;
    and</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -19pt; margin-left: 19pt">
    &#149;&#160;&#160;&#160;&#160;<I>third</I>, 98% to all
    unitholders, pro rata, and 2.0% to our general partner, until
    each unit has received a distribution of
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    If cash distributions to our unitholders exceed
    $&#160;&#160;&#160;&#160;&#160; per common and subordinated unit
    in any quarter, our unitholders and our general partner will
    receive distributions according to the following percentage
    allocations:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Marginal Percentage Interest in<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Total Quarterly Distribution<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Distributions</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="5" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Target Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unitholders</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>General Partner</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="5" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    above $&#160;&#160;&#160;&#160;&#160;up to
    $&#160;&#160;&#160;&#160;&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    85%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    15%
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    above $&#160;&#160;&#160;&#160;&#160;up to
    $&#160;&#160;&#160;&#160;&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    75%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    25%
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="5" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    above $&#160;&#160;&#160;&#160;&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    50%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    50%
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Please read &#147;How We Make Cash Distribution&#160;&#151;
    General Partner Interest and Incentive Distribution Rights.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Historical cash available for distribution generated during the
    year ended December&#160;31, 2009 would have been sufficient to
    allow us to pay&#160;&#160;&#160;&#160;&#160;%
    and&#160;&#160;&#160;&#160;&#160;% of the minimum quarterly
    distribution ($&#160;&#160;&#160;&#160;&#160; per quarter, or
    $&#160;&#160;&#160;&#160;&#160; on an annualized basis) on our
    common units and subordinated units, respectively.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Please read &#147;Cash Distribution Policy and Restrictions on
    Distributions&#160;&#151; Historical and Forecasted Results of
    Operations and Cash Available for Distribution.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We have included a forecast of our cash available for
    distribution for the twelve months ending June&#160;30, 2011 in
    &#147;Cash Distribution Policy and Restrictions on
    Distributions&#160;&#151; Historical and Forecasted Results of
    Operations and Cash Available for Distribution.&#148; We
    believe, based on our financial forecast and related
    assumptions, that we will have sufficient available cash to
    enable us to pay the full minimum quarterly distribution of
    $&#160;&#160;&#160;&#160;&#160; on all of our common units and
    subordinated units and the related distribution on our general
    partner&#146;s 2.0% general partner interest for the four
    quarters ending June&#160;30, 2011. The amount of available cash
    we need to pay the minimum quarterly distribution for four
    quarters on our common units, subordinated units and </TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    general partner units to be outstanding immediately after this
    offering is approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million. Based on our
    financial forecast and related assumptions, we forecast that our
    cash available for distribution for the twelve months ending
    June&#160;30, 2011 will be approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Although we do not anticipate any, distributions out of capital
    surplus, as opposed to operating surplus, will constitute a
    return of capital to our unitholders and will result in a
    reduction in the minimum quarterly distribution and target
    distribution levels. For a further description of this treatment
    of distributions from capital surplus, please read &#147;How We
    Make Cash Distributions&#160;&#151; Distributions from Capital
    Surplus&#160;&#151; Effect of a Distribution from Capital
    Surplus.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Subordinated units</TD>
    <TD></TD>
    <TD valign="bottom">
    C&#038;T Coal and AIM Oxford will initially own all of our
    subordinated units. The principal difference between our common
    units and subordinated units is that, in any quarter during the
    subordination period, the subordinated units are not entitled to
    receive any distributions of available cash until the common
    units have received the minimum quarterly distribution plus any
    arrearages in the payment of the minimum quarterly distribution
    from prior quarters. Subordinated units will not accrue
    arrearages.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Conversion of subordinated units</TD>
    <TD></TD>
    <TD valign="bottom">
    The subordination period will end on the first business day
    after we have earned and paid from operating surplus generated
    in the applicable period at least
    (i)&#160;$&#160;&#160;&#160;&#160;&#160; (the minimum quarterly
    distribution on an annualized basis) on each outstanding common
    and subordinated unit and the corresponding distribution on our
    general partner units for each of three consecutive,
    non-overlapping four quarter periods ending on or after
    June&#160;30, 2013 or (ii)&#160;$&#160;&#160;&#160;&#160;&#160;
    per quarter (150% of the minimum quarterly distribution, which
    is $&#160;&#160;&#160;&#160;&#160; on an annualized basis) on
    each outstanding common and subordinated unit and the
    corresponding distributions on our general partner units for
    each of four consecutive quarters, in each case provided there
    are no arrearages on our common units at that time.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    In addition, the subordination period will end upon the removal
    of our general partner other than for cause if the units held by
    our general partner and its affiliates are not voted in favor of
    such removal.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    When the subordination period ends, all subordinated units will
    convert into common units on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis, and the common units will no longer be entitled to
    arrearages. Please read &#147;How We Make Cash
    Distributions&#160;&#151; Subordination Period.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    General partner&#146;s right to reset the target distribution
    levels</TD>
    <TD></TD>
    <TD valign="bottom">
    Our general partner has the right, at a time when there are no
    subordinated units outstanding and it has received incentive
    distributions at the highest level to which it is entitled (48%)
    for each of the prior four consecutive fiscal quarters, to reset
    the initial cash target distribution levels at higher levels
    based on the distribution at the time of the exercise of the
    reset election. Following a reset election by our general
    partner, the minimum </TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    quarterly distribution will be adjusted to equal the reset
    minimum quarterly distribution, and the target distribution
    levels will be reset to correspondingly higher levels based on
    the same percentage increases above the reset minimum quarterly
    distribution.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    If our general partner elects to reset the target distribution
    levels, it will be entitled to receive common units and
    additional general partner units. The number of common units to
    be issued to our general partner will be equal to the number of
    common units that would have entitled their holder to an
    aggregate quarterly cash distribution equal to the average of
    the distributions to our general partner on the incentive
    distribution rights in the prior two quarters, assuming a per
    unit distribution equal to the average of the distribution for
    the prior two quarters. Our general partner will be issued the
    number of general partner units necessary to maintain its
    general partner interest in us immediately prior to the reset
    election. Please read &#147;How We Make Cash
    Distributions&#160;&#151; General Partner&#146;s Right to Reset
    Incentive Distribution Levels.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Issuance of additional units</TD>
    <TD></TD>
    <TD valign="bottom">
    Our partnership agreement authorizes us to issue an unlimited
    number of additional units without the approval of our
    unitholders. Please read &#147;Units Eligible for Future
    Sale&#148; and &#147;The Partnership Agreement&#160;&#151;
    Issuance of Additional Securities.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Limited voting rights</TD>
    <TD></TD>
    <TD valign="bottom">
    Our general partner will manage and operate us. Unlike the
    holders of common stock in a corporation, our unitholders will
    have only limited voting rights on matters affecting our
    business. Our unitholders will have no right to elect our
    general partner or its directors on an annual or other
    continuing basis. Our general partner may not be removed except
    by a vote of the holders of at least 80% of the outstanding
    units, including any units owned by our general partner and its
    affiliates, voting together as a single class. Upon consummation
    of this offering, our general partner and its affiliates will
    own an aggregate of&#160;&#160;&#160;&#160;&#160;% of our common
    and subordinated units. This will give our general partner the
    ability to prevent its involuntary removal. Please read
    &#147;The Partnership Agreement&#160;&#151; Voting Rights.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Limited call right</TD>
    <TD></TD>
    <TD valign="bottom">
    If at any time our general partner and its affiliates own more
    than 80% of the outstanding common units, our general partner
    has the right, but not the obligation, to purchase all of the
    remaining common units at a price not less than the then-current
    market price of the common units. Please read &#147;The
    Partnership Agreement&#160;&#151; Limited Call Right.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Estimated ratio of taxable income to distributions</TD>
    <TD></TD>
    <TD valign="bottom">
    We estimate that if you own the common units you purchase in
    this offering through the record date for distributions for the
    period ending December&#160;31, 2013, you will be allocated, on
    a cumulative basis, an amount of federal taxable income for that
    period that will be&#160;&#160;&#160;&#160;&#160;% or less of
    the cash distributed with respect to that period. For example,
    if you receive an annual distribution of
    $&#160;&#160;&#160;&#160;&#160; per unit, we estimate that your
    average allocable federal taxable income per year will be no
    more than $&#160;&#160;&#160;&#160;&#160; per unit. Please read
    &#147;Material Federal Income Tax Consequences&#160;&#151; Tax
    Consequences </TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    of Unit Ownership&#160;&#151; Ratio of Taxable Income to
    Distributions&#148; for the basis of this estimate.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Material federal income tax consequences</TD>
    <TD></TD>
    <TD valign="bottom">
    For a discussion of other material federal income tax
    consequences that may be relevant to prospective unitholders who
    are individual citizens or residents of the United States,
    please read &#147;Material Federal Income Tax Consequences.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Exchange listing</TD>
    <TD></TD>
    <TD valign="bottom">
    We intend to apply to list our common units on the New York
    Stock Exchange under the symbol &#147;OXF.&#148;</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Historical and Pro Forma Consolidated Financial and Operating
    Data</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents our summary historical consolidated
    financial and operating data, as well as that of our accounting
    predecessor and wholly owned subsidiary, Oxford Mining Company,
    as of the dates and for the periods indicated. The following
    table also presents our summary pro forma consolidated financial
    and operating data as of the dates and for the periods indicated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The summary historical consolidated financial data presented for
    the period from January&#160;1, 2007 to August&#160;23, 2007 are
    derived from the audited historical consolidated financial
    statements of Oxford Mining Company that are included elsewhere
    in this prospectus. The summary historical consolidated
    financial data presented as of December&#160;31, 2007 for the
    period from August&#160;24, 2007 to December&#160;31, 2007 and
    as of and for the years ended December&#160;31, 2008 and 2009
    are derived from our audited historical consolidated financial
    statements that are included elsewhere in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The summary pro forma consolidated financial data presented as
    of and for the year ended December&#160;31, 2009 are derived
    from our unaudited pro forma consolidated financial statements
    included elsewhere in this prospectus. Our unaudited pro forma
    consolidated financial statements give pro forma effect to
    (i)&#160;the Phoenix Coal acquisition and (ii)&#160;this
    offering and the transactions related to this offering described
    in &#147;Summary&#160;&#151; The Transactions&#148; and the
    application of the net proceeds from this offering described in
    &#147;Use of Proceeds.&#148; The unaudited pro forma
    consolidated balance sheet assumes this offering occurred as of
    December&#160;31, 2009. The unaudited pro forma consolidated
    statement of operations for the year ended December&#160;31,
    2009 assumes the Phoenix Coal acquisition, this offering and the
    transactions related to this offering occurred as of
    January&#160;1, 2009. We have not given pro forma effect to
    incremental selling, general and administrative expenses of
    approximately $3.0&#160;million that we expect to incur as a
    result of being a publicly traded partnership.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a detailed discussion of the following table, please read
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations.&#148; The following table
    should also be read in conjunction with
    &#147;Summary&#160;&#151; The Transactions,&#148; &#147;Use of
    Proceeds,&#148; &#147;Business&#160;&#151; Our History,&#148;
    the historical consolidated financial statements of Oxford
    Mining Company, the historical combined financial statements for
    the carved-out surface mining operations of Phoenix Coal and our
    unaudited pro forma consolidated financial statements and
    audited consolidated financial statements included elsewhere in
    this prospectus. Among other things, those historical and pro
    forma consolidated financial statements include more detailed
    information regarding the basis of presentation for the
    information in the following table.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents a non-GAAP financial measure,
    Adjusted EBITDA, which we use in our business as it is an
    important supplemental measure of our performance. Adjusted
    EBITDA represents net income (loss) attributable to our
    unitholders before interest, taxes, depreciation, depletion and
    amortization, gain from purchase of a business, amortization of
    below-market coal sales contracts and non-cash equity
    compensation expense. This measure is not calculated or
    presented in accordance with GAAP. We explain this measure below
    and reconcile it to its most directly comparable financial
    measure calculated and presented in accordance with GAAP.
</DIV>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 6pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="12" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oxford Mining Company<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="12" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oxford Resource<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Predecessor)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="12" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Oxford Resource Partners, LP</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Partners, LP</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from January&#160;1,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from August&#160;24,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007 to August&#160;23,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007 to December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="22" align="center" valign="bottom">
    <B>(in thousands, except per ton amounts)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <B>Statement of Operations Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Revenues:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Coal sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    96,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    61,324
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    193,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    254,171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    312,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Transportation revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Royalty and non-coal revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,267
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Total revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,935
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    230,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    293,844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    356,894
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Cost of coal sales (excluding DD&#038;A, shown separately)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,415
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,721
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151,421
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    213,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Cost of purchased coal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,494
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,925
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,487
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Cost of transportation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Depreciation, depletion, and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,242
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,735
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Total costs and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    222,422
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    337,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Income (loss) from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (511
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,502
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,276
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,386
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,498
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,720
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,484
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,341
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Gain from purchase of
    business<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,871
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Less: Net income attributable to noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (682
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (537
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,891
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,895
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,895
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,553
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,482
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <B>Statement of Cash Flows Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    Net cash provided by (used in):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (8,478
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,619
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (103,336
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23,901
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (51,115
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (234
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,274
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,494
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <B>Other Financial Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Adjusted
    EBITDA<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,349
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39,016
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Maintenance capital
    expenditures<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,020
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,841
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,529
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,503
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <B>Balance Sheet Data (at period end):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Trade accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,396
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,547
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Inventory
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,824
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,655
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,134
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    PPE, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,893
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    146,774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    171,297
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    203,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    209,726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Total debt (current and long-term)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,977
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,711
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,711
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <B>Operating Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Tons of coal produced
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,693
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Tons of coal purchased
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    641
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    434
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    885
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Tons of coal sold
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,333
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,938
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Average sales price per
    ton<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    38.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Cost of coal sales per ton
    produced<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 12pt">
    Cost of purchased coal per
    ton<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33.66
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    On September&#160;30, 2009, we acquired all of the active
    surfacing mining operations of Phoenix Coal. The purchase price
    of this acquisition was less than the fair value of the net
    assets and liabilities we acquired. We recorded this difference
    as a gain of $3.8&#160;million for the year ending
    December&#160;31, 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    See &#147;Selected Historical and Pro Forma Consolidated
    Financial and Operating Data&#148; for our definition of
    Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net
    income attributable to our unitholders.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Maintenance capital expenditures are cash expenditures made to
    maintain or replace, including over the long term, our operating
    capacity, asset base or operating income. Examples of
    maintenance capital expenditures include capital expenditures
    associated with the replacement of equipment and coal reserves,
    whether through the expansion of an existing mine or the
    acquisition or development of new reserves, to the extent such
    expenditures are made to maintain our operating capacity, asset
    base or operating income. Historically, we have not made a
    distinction between maintenance capital expenditures and other
    capital expenditures. For purposes of this presentation,
    however, we have evaluated our historical capital expenditures
    to estimate which of them would have been maintenance capital
    expenditures had we classified them as such at the time they
    were made. The amounts shown reflect our estimates based on that
    evaluation.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Represents our coal sales divided by total tons of coal sold.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Represents our cost of coal sales (excluding DD&#038;A) divided
    by the tons of coal we produce.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Represents the cost of purchased coal divided by the tons of
    coal we purchase.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Limited partner interests are inherently different from the
    capital stock of a corporation, although many of the business
    risks to which we are subject are similar to those that would be
    faced by a corporation engaged in a similar business. You should
    carefully consider the following risk factors together with all
    of the other information included in this prospectus in
    evaluating an investment in our common units.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>If any of the following risks were to occur, our business,
    financial condition, results of operations and cash available
    for distribution could be materially adversely affected. In that
    case, we might not be able to make distributions on our common
    units, the trading price of our common units could decline and
    you could lose all or part of your investment.</I>
</DIV>

<A name='117'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Our Business</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We may not have sufficient cash to enable us to pay the
    minimum quarterly distribution on our common units following the
    establishment of cash reserves by our general partner and the
    payment of costs and expenses, including reimbursement of
    expenses to our general partner.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may not have sufficient cash each quarter to pay the minimum
    quarterly distribution. The amount of cash we can distribute on
    our common and subordinated units principally depends upon the
    amount of cash we generate from our operations, which will
    fluctuate from quarter to quarter based on, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the level of our production and coal sales and the amount of
    revenue we generate;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the level of our operating costs, including reimbursement of
    expenses to our general partner;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    changes in governmental regulation of the mining industry or the
    electric power industry and the increased costs of complying
    with those changes;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our ability to obtain, renew and maintain permits on a timely
    basis;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    prevailing economic and market conditions; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    difficulties in collecting our receivables because of credit or
    financial problems of major customers.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the actual amount of cash we will have available
    for distribution will depend on other factors, such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the level of capital expenditures we make;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the restrictions contained in our credit agreement and our debt
    service requirements;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the cost of acquisitions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    fluctuations in our working capital needs;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our ability to borrow funds and access capital markets; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the amount of cash reserves established by our general partner.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a description of additional restrictions and factors that
    may affect our ability to make cash distributions, please read
    &#147;Cash Distribution Policy and Restrictions on
    Distributions.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>The assumptions underlying the forecast of cash available
    for distribution that we include in &#147;Cash Distribution
    Policy and Restrictions on Distributions&#148; are inherently
    uncertain and subject to significant risks that could cause
    actual results to differ materially from those forecasted. If we
    do not achieve the forecasted results, we may not be able to pay
    the minimum quarterly distribution or any amount on our common
    units and the market price of our common units may decline
    materially.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The forecast of cash available for distribution set forth in
    &#147;Cash Distribution Policy and Restrictions on
    Distributions&#148; includes our forecast of our results of
    operations and cash available for distribution for the twelve
    months ending June&#160;30, 2011. The financial forecast has
    been prepared by management, and we have neither received nor
    requested an opinion or report on it from our or any other
    independent auditor. The
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    assumptions underlying the forecast are inherently uncertain and
    are subject to significant business, economic, regulatory and
    competitive risks, including those discussed below, that could
    cause actual results to differ materially from those forecasted.
    If we do not achieve the forecasted results, we may not be able
    to pay the minimum quarterly distribution or any amount on our
    common units or subordinated units and the market price of our
    common units may decline materially.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount of available cash we need to pay the minimum
    quarterly distribution for four quarters on our common units,
    subordinated units and general partner units to be outstanding
    immediately after this offering is approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million. Historical cash
    available for distribution generated during the year ended
    December&#160;31, 2009 would have been sufficient to allow us to
    pay&#160;&#160;&#160;&#160;&#160;%
    and&#160;&#160;&#160;&#160;&#160;% of the minimum quarterly
    distribution ($&#160;&#160;&#160;&#160;&#160; per quarter, or
    $&#160;&#160;&#160;&#160;&#160; on an annualized basis) on our
    common units and subordinated units, respectively. For a
    calculation of our ability to make distributions to unitholders
    based on our historical results for the year ended
    December&#160;31, 2009 and for a forecast of our ability to pay
    the full minimum quarterly distribution on our common units,
    subordinated units and general partner units for the twelve
    months ending June&#160;30, 2011, please read &#147;Cash
    Distribution Policy and Restrictions on Distributions.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Decreases in demand for electricity and changes in coal
    consumption patterns of U.S. electric power generators could
    adversely affect our business.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business is closely linked to domestic demand for
    electricity. In 2009 we sold approximately 89% of our coal to
    domestic electric power generators, and we have long-term
    contracts in place with these electric power generators for a
    significant portion of our future production. In addition,
    because our business is linked to domestic demand for
    electricity, any changes in coal consumption by
    U.S.&#160;electric power generators would likely impact our
    business over the long term. The amount of coal consumed by
    electric power generation is affected by, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    general economic conditions, particularly those affecting
    industrial electric power demand;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    indirect competition from alternative fuel sources for power
    generation, such as natural gas, fuel oil, nuclear,
    hydroelectric, wind and solar power, and the location,
    availability, quality and price of those alternative fuel
    sources;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    environmental and other governmental regulations, including
    those impacting coal-fired power plants;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    energy conservation efforts and related governmental policies.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historically, demand for electricity has decreased during
    periods of economic downturn, such as the recent downturn in the
    U.S.&#160;economy and financial markets. According to the EIA,
    total electricity consumption in the United States fell by
    approximately 3.8% during 2009 compared with 2008, primarily
    because of the effect of the economic downturn on industrial
    electricity demand, and U.S.&#160;electric generation from coal
    fell by approximately 11.0% in 2009 compared with 2008. Further
    decreases in the demand for electricity, such as decreases that
    could be caused by a worsening of current economic conditions, a
    prolonged economic recession or other similar events, could have
    a material adverse effect on the demand for coal and on our
    business over the long term.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Changes in the coal industry, such as those caused by decreased
    electricity demand and increased competition, may also cause
    some of our customers not to renew, extend or enter into new
    long-term coal sales contracts with us or to enter into
    agreements to purchase reduced quantities of coal than in the
    past or on different terms or prices. Indirect competition from
    gas-fired generation has the most potential to displace a
    significant amount of coal-fired generation in the near term,
    particularly older, less efficient coal-powered generators. We
    expect that many of the new power plants needed in the future to
    meet increased demand for electricity will be fired by natural
    gas because gas-fired plants are cheaper to construct and
    permits to construct these plants are easier to obtain, and may
    be less prone to challenge, because natural-gas fired generators
    are viewed as having a lower environmental impact than
    coal-fired generators. In addition, uncertainty caused by
    federal and state regulations could cause coal customers to be
    uncertain of their coal requirements in future years and could
    deter them from entering into new, or extending or renewing
    existing, long-term coal sales contracts.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    long-term coal sales contracts subject us to renewal
    risks.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We sell most of the coal we produce under long-term coal sales
    contracts, which we define as contracts with terms greater than
    one year. As a result, our results of operations are dependent
    upon the prices we receive for the coal we sell under these
    contracts. To the extent we are not successful in renewing,
    extending or renegotiating our long-term contracts on favorable
    terms, we may have to accept lower prices for the coal we sell
    or sell reduced quantities of coal in order to secure new sales
    contracts for our coal. Prices and quantities under our
    long-term coal sales contracts are generally based on
    expectations of future coal prices at the time the contract is
    entered into, renewed, extended or re-opened. The expectation of
    future prices for coal depends upon factors beyond our control,
    including the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    domestic and foreign supply and demand for coal, including
    demand for U.S.&#160;coal exports from eastern U.S.&#160;markets;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    domestic demand for electricity, which tends to follow changes
    in general economic activity;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    domestic and foreign economic conditions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the price, quantity and quality of other coal available to our
    customers;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    competition for production of electricity from non-coal sources,
    including the price and availability of alternative fuels and
    other sources, such as natural gas, fuel oil, nuclear,
    hydroelectric, wind and solar power, and the effects of
    technological developments related to these non-coal energy
    sources;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    domestic air emission standards for coal-fired power plants, and
    the ability of coal-fired power plants to meet these standards
    by installing scrubbers, purchasing emissions allowances or
    other means;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    legislative and judicial developments, regulatory changes, or
    changes in energy policy and energy conservation measures that
    would adversely affect the coal industry.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Two of our long-term coal sales contracts contain market-based
    &#147;re-opener&#148; provisions that permit the sales price
    terms to be adjusted every three years. For 2011, 2012 and 2013,
    0.4&#160;million tons, 0.4&#160;million tons and
    0.6&#160;million tons of coal, respectively, that we have
    committed to deliver under our long-term coal sales contracts
    are subject to price re-openers. Under these re-openers, the
    failure of the parties to agree on a new market-based price
    gives either party the right to terminate the contract. While
    these re-openers can benefit us during periods of rising coal
    prices, they have the potential to adversely affect us during
    periods of declining coal prices.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    inability to acquire additional coal reserves that are
    economically recoverable may have a material adverse effect on
    our future profitability and growth.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our profitability depends substantially on our ability to mine,
    in a cost-effective manner, coal reserves that possess the
    quality characteristics our customers desire. Because our
    reserves decline as we mine our coal, our future profitability
    and growth depend upon our ability to acquire additional coal
    reserves that are economically recoverable to replace the
    reserves we produce. If we fail to acquire or develop sufficient
    additional reserves to replace the reserves depleted by our
    production, our existing reserves will eventually be depleted.
    Please read &#147;Business&#160;&#151; Coal Reserves.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Competition within the coal industry may materially and
    adversely affect our ability to sell coal at an acceptable
    price.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We compete for domestic sales with numerous other coal producers
    in Northern Appalachia and the Illinois Basin and in other coal
    producing regions of the United States, primarily Central
    Appalachia and the Powder River Basin, or the PRB. The most
    important factors on which we compete are delivered price (i.e.,
    the cost of coal delivered to the customer, including
    transportation costs, which are generally paid by our customers
    either directly or indirectly), coal quality characteristics
    (primarily heat, sulfur, ash and moisture content) and
    reliability of supply. For example, even though PRB coal must be
    transported by rail over long distances at substantial
    transportation cost to reach our primary market area, its
    delivered cost can be competitive with coal from other domestic
    coal-producing regions. Our competitors may have, among other
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    things, greater liquidity, greater access to credit and other
    financial resources, newer or more efficient equipment, lower
    cost structures, partnerships with transportation companies or
    more effective risk management policies and procedures. In
    addition, competition within the U.S.&#160;coal industry will
    increase in periods of reduced foreign demand for domestic coal,
    as more domestic coal production is marketed in the United
    States. Our failure to compete successfully with our competitors
    could have a material adverse effect on our business, financial
    condition or results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>New and future regulatory requirements limiting greenhouse
    gas emissions could adversely affect coal-fired power generation
    and reduce the demand for coal as a fuel source, which could
    cause the price and quantity of the coal we sell to decline
    materially.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    One major by-product of burning coal is carbon dioxide, which is
    a greenhouse gas and is a major source of concern with respect
    to global warming, also known as climate change. Climate change
    continues to attract public and scientific attention, and
    increasing government attention is being paid to reducing
    greenhouse gas emissions, including from coal-fired power
    plants. There are several regulatory proposals under
    consideration at the international, federal, state and local
    levels to limit emissions of greenhouse gases, including
    possible future U.S.&#160;treaty commitments, new federal or
    state legislation that may establish a
    <FONT style="white-space: nowrap">cap-and-trade,</FONT>
    and regulation under existing environmental laws by the
    U.S.&#160;Environmental Protection Agency, or the EPA. If
    enacted, these regulatory proposals and other efforts to reduce
    greenhouse gas emissions may require additional controls on, or
    the closure of, coal-fired power plants and industrial boilers,
    may cause some users of coal to switch from coal to a
    lower-carbon fuel, and may result in the construction of fewer
    new coal-fired power plants. For a more detailed discussion of
    these regulatory proposals, please read
    &#147;Business&#160;&#151; Regulation and Laws.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The permitting of new coal-fired power plants has also recently
    been contested, at times successfully, by state regulators and
    environmental advocacy organizations due to concerns related to
    greenhouse gas emissions from the new plants. Additionally, two
    U.S.&#160;federal appeals courts have allowed lawsuits to
    proceed by individuals, state attorneys general and others to
    pursue federal common law claims against major utility, coal,
    oil and chemical companies on the basis that those companies may
    have created a public nuisance due to their emissions of carbon
    dioxide.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The enactment of comprehensive laws to limit greenhouse gas
    emissions or the potential for liability or permitting issues
    based on greenhouse gas emissions may adversely affect the use
    of and demand for fossil fuels, particularly coal, which could
    have a material adverse effect on our business, financial
    condition or results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Existing and future regulatory requirements relating to
    sulfur dioxide and other air emissions could affect our
    customers and could reduce the demand for the high-sulfur coal
    we produce and cause coal prices and sales of our high-sulfur
    coal to decline materially.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal-fired power plants are subject to extensive environmental
    regulation, particularly with respect to air emissions. For
    example, the Clean Air Act Amendments of 1990, or the CAAA, and
    similar state and local laws place annual limits on the amount
    of sulfur dioxide, particulate matter, nitrogen oxides, mercury
    and other compounds that can be emitted into the air by electric
    power generators, which are the largest end-users of our coal.
    The ability of coal-fired power plants to burn the high-sulfur
    coal we produce may be limited unless they:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    have already installed or will install costly pollution control
    devices such as scrubbers;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    can purchase and use emission allowances; or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    blend our high-sulfur coal with low-sulfur coal.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Projected demand growth for high-sulfur coal in our primary
    market area is largely dependent on planned installations of
    scrubbers at new and existing coal-fired power plants that use
    or plan to use high-sulfur coal as a fuel. The timing and amount
    of these scrubber installations may be affected by, among other
    things, anticipated changes in air quality regulations and the
    price and availability of sulfur dioxide emissions allowances.
    To the extent that these scrubber installations do not occur or
    are substantially delayed and
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    sufficient sulfur dioxide allowances are unavailable or are
    prohibitively expensive, demand for our high-sulfur coal could
    materially decrease, which could have a material adverse effect
    on our business, financial condition or results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    coal mining operations are subject to operating risks, which
    could result in materially increased operating expenses and
    decreased production levels and could have a material adverse
    effect on our business, financial condition or results of
    operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our coal mining operations are subject to a number of operating
    risks beyond our control. Because we maintain very limited
    produced coal inventory, various conditions or events could
    disrupt operations, adversely affect production and shipments
    and increase the cost of mining at particular mines for varying
    lengths of time, which could have a material adverse effect on
    our business, financial condition or results of operations.
    These conditions and events include, among others:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    poor mining conditions resulting from geologic, hydrologic or
    other conditions, which may cause instability of highwalls or
    spoil-piles or cause damage to nearby infrastructure;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    adverse weather and natural disasters, such as heavy rains,
    flooding and other natural events affecting operations or
    transportation;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the unavailability of qualified labor and contractors;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the unavailability or increased prices of equipment (including
    heavy mobile equipment) or other critical supplies such as tires
    and explosives, fuel, lubricants and other consumables of the
    type, quantity or size needed to meet production expectations;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    fluctuations in transportation costs and transportation delays
    or interruptions, including those caused by river flooding and
    lock closures for repairs;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    delays, challenges to, and difficulties in acquiring,
    maintaining or renewing necessary permits, including
    environmental permits, or mineral and surface rights;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    changes in or enhanced enforcement of current and future health,
    safety and environmental regulations or changes in
    interpretations of current regulations, including the
    classification of plant and animal species near our mines as
    endangered or threatened species;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    mine accidents or other unforeseen casualty events;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    employee injuries or fatalities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    increased or unexpected reclamation costs; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the inability to monitor our mining operations due to
    disruptions or failures of our information technology systems.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These changes, conditions and events may materially increase our
    cost of mining and delay or halt production at particular mines
    either permanently or for varying lengths of time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain insurance coverage against some but not all
    potential losses to protect against the risks we face. We
    generally do not carry business interruption insurance and we
    may elect not to carry other types of insurance in the future if
    our management believes that the cost of available insurance is
    excessive relative to the risks presented. In addition, it is
    not possible to ensure fully against pollution and environmental
    risks. If a significant accident or other event occurs and is
    not fully covered by insurance, then that accident or other
    event could have a material adverse effect on our business,
    financial condition or results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    not receive cash distributions from Harrison Resources in the
    future.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In January 2007, we entered into a joint venture, Harrison
    Resources, with CONSOL Energy to mine surface coal reserves
    purchased from CONSOL Energy. Since its inception, Harrison
    Resources has acquired 3.5&#160;million tons of proven and
    probable coal reserves from CONSOL Energy. Pursuant to its
    operating agreement, all members of Harrison Resources must
    approve cash distributions, other than tax distributions to
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    its members. The members of Harrison Resources have consistently
    approved cash distributions from Harrison Resources on a
    quarterly basis, including the $6.3&#160;million that we
    received in 2009. In the future, however, there can be no
    assurance that we will receive regular cash distributions, as
    its members may prefer to keep cash in Harrison Resources
    instead of approving distributions. As a result, our ability to
    receive future distributions from Harrison Resources may be
    limited, which could have a material adverse effect on our
    ability to make cash distributions to our unitholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">A
    significant portion of the cash available for distribution to
    our unitholders is derived from royalty payments we receive on
    our underground coal reserves, which we do not
    operate.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2005, we sold our underground mining operations at the
    Tusky mining complex to an independent coal producer in Northern
    Appalachia. As part of the transaction, we subleased our
    underground coal reserves to this producer in exchange for an
    overriding royalty. Our overriding royalty is equal to a
    percentage of the sales price that our sublessee receives for
    the coal it produces and sells from our underground reserves.
    Our sublessee is also obligated to pay directly to our lessor a
    tonnage-based royalty on the production from these reserves. For
    the year ended December&#160;31, 2009, we received royalty
    payments on our underground coal reserves from our sublessee of
    approximately $4.5&#160;million, or approximately 8.9% of our
    Adjusted EBITDA for the year ended December&#160;31, 2009. The
    royalty payments that we receive from our sublessee could be
    adversely affected by any of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a substantial and extended decline in the sales price our
    sublessee receives for the coal it produces;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    any decisions by our sublessee to reduce or discontinue
    production or sales of coal produced from our underground coal
    reserves;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    any failure by our sublessee to properly manage its operations;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our sublessee&#146;s operational risks relating to our
    underground coal reserves, which expose our sublessee to
    operating conditions and events beyond its control, including
    the inability to acquire necessary permits, changes or
    variations in geologic conditions, changes in governmental
    regulation of the coal industry or the electric power industry,
    mining and processing equipment failures and unexpected
    maintenance problems, interruptions due to transportation
    delays, adverse weather and natural disasters, labor-related
    interruptions and fires and explosions; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a material decline in the creditworthiness of our sublessee,
    including as a result of the current economic downturn.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As we do not operate the Tusky mining complex, our ability to
    address the risks discussed above will be limited. If the
    royalty payments we receive from our sublessee are reduced, our
    ability to make cash distributions to our unitholders could be
    adversely affected. In addition, we could lose our lease rights
    with our lessor if our sublessee fails to pay the tonnage-based
    royalty owed to our lessor and we fail to timely make our lessor
    whole for those unpaid royalties.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    amount of estimated maintenance capital expenditures our general
    partner is required to deduct from operating surplus each
    quarter is based on our current estimates and could increase in
    the future, resulting in a decrease in available cash from
    operating surplus that could be distributed to our
    unitholders.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement requires our general partner to deduct
    from operating surplus each quarter estimated maintenance
    capital expenditures as opposed to actual maintenance capital
    expenditures in order to reduce disparities in operating surplus
    caused by fluctuating maintenance capital expenditures, such as
    reserve replacement costs or major refurbishment or replacement
    of mining equipment. Our initial annual estimated maintenance
    capital expenditures for purposes of calculating operating
    surplus will be $32.3&#160;million. This amount is based on our
    current estimates of the amounts of expenditures we will be
    required to make in future years to maintain our depleting
    capital asset base, which we believe to be reasonable. This
    amount has been taken into consideration in calculating our
    forecast of cash available for distribution in &#147;Cash
    Distribution Policy and Restrictions on Distributions.&#148; The
    initial amount of our estimated annual maintenance capital
    expenditures may be more than our initial actual maintenance
    capital expenditures, which will reduce the
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    amount of available cash from operating surplus that we would
    otherwise have available for distribution to unitholders. The
    amount of estimated maintenance capital expenditures deducted
    from operating surplus is subject to review and change by the
    board of directors of our general partner at least once a year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Increases
    in the cost of diesel fuel and explosives, or the inability to
    obtain a sufficient quantity of those supplies, could increase
    our operating expenses, disrupt or delay our production and have
    a material adverse effect on our profitability.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We use considerable quantities of diesel fuel in our mining
    operations. We typically hedge a large portion of our diesel
    fuel needs each year through fixed price forward contracts that
    provide for physical delivery (during 2009, we hedged 54.4% of
    our diesel fuel needs). We also recover a portion of our total
    fuel costs through full or partial cost pass through and
    inflation adjustment provisions in our long-term coal sales
    contracts. If the price of diesel fuel increases significantly
    and we are unable to recover all or a portion of those increases
    through these cost pass through or inflation adjustment
    provisions, our operating expenses will increase relative to our
    revenue, which could have a material adverse effect on our
    profitability. A significant amount of explosives are used in
    our mining operations. We use third party contractors to provide
    blasting services, and they generally pass through to us the
    cost of explosives, which are subject to fluctuations.
    Additionally, a limited number of suppliers exist for
    explosives, and any of these suppliers may divert their products
    to other buyers. Shortages in raw materials used in the
    manufacturing of explosives, which, in some cases, do not have
    ready substitutes, or the cancellation of supply contracts under
    which these raw materials are obtained, could increase the
    prices and limit the ability of our contractors to obtain these
    supplies.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Extensive
    environmental laws and regulations impose significant costs on
    our mining operations, and future laws and regulations could
    materially increase those costs or limit our ability to produce
    and sell coal.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The coal mining industry is subject to increasingly strict
    regulation by federal, state and local authorities with respect
    to environmental matters such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    limitations on land use;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    mine permitting and licensing requirements;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    reclamation and restoration of mining properties after mining is
    completed;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    management of materials generated by mining operations;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    storage, treatment and disposal of wastes;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    air quality standards;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    water pollution;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    protection of human health and the preservation of plants and
    animals, including endangered or threatened species;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    protection of wetlands;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    discharge of materials into the environment; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    effects of mining on surface water and groundwater quality and
    availability.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The costs of complying with these laws and regulations are
    significant. Although we believe that we are in substantial
    compliance, we may, in the future, experience violations that
    would subject us to administrative, civil and criminal penalties
    and a range of other possible sanctions. We may incur
    significant costs and liabilities resulting from claims for
    damages to property or injury to persons arising from our
    operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The enforcement of laws and regulations governing the coal
    mining industry has increased substantially for a number of
    reasons, including the recent occurrence of mining accidents at
    certain mines. Moreover, the trend is towards more stringent
    regulations and more vigorous enforcement of those laws and
    regulations particularly in light of the renewed focus by
    governmental agencies on the mining industry. Thus, the costs of
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    compliance with those laws and regulations may become more
    costly and the consequences for any non-compliance may become
    more significant in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    New legislation or administrative regulations or new judicial
    interpretations or administrative enforcement of existing laws
    and regulations, including proposals related to the protection
    of the environment that would further regulate and tax the coal
    industry, may also require us to change operations significantly
    or incur increased costs. Such changes could have a material
    adverse effect on our business, financial condition or results
    of operations. Please read &#147;Business&#160;&#151; Regulation
    and Laws.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We may
    be unable to obtain, maintain or renew permits necessary for our
    operations, which would materially reduce our production, cash
    flows and profitability.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As is typical in the coal industry, our coal production is
    dependent on our ability to obtain the permits and approvals
    from federal and state regulatory authorities needed to mine our
    coal reserves within the timeline specified in our surface
    mining plan. The permitting rules, and the interpretations of
    these rules, are complex, change frequently, and are often
    subject to discretionary interpretations by regulators, all of
    which may make compliance more difficult or impractical, and may
    possibly preclude the continuance of ongoing mining operations
    or the development of future mining operations. In addition, the
    public, including non-governmental organizations, anti-mining
    groups and individuals, have certain statutory rights to comment
    upon and otherwise impact the permitting process, including
    through court intervention. Over the past few years, the length
    of time needed to bring a new surface mine into production has
    increased because of the increased time required to obtain
    necessary permits. The slowing pace at which permits are issued
    or renewed for new and existing mines has materially impacted
    expected production in certain regions, primarily in Central
    Appalachia, but could also affect Northern Appalachia, the
    Illinois Basin and other regions in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on our current surface mining plan, we have proven and
    probable coal reserves with active permits that will allow us to
    mine for approximately three years. Typically, we submit the
    necessary permit applications 12 to 30&#160;months before we
    plan to mine a new area. Some of our required mining permits are
    becoming increasingly difficult to obtain in a timely manner, or
    at all, and in some instances we have had to abandon or
    substantially delay the mining of coal in certain areas covered
    by the application in order to obtain required permits and
    approvals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Army Corps of Engineers, or the Corps, the EPA and the
    Department of the Interior recently announced an interagency
    action plan for an &#147;enhanced review&#148; of any project
    that requires a permit under both the Surface Mining Control and
    Reclamation Act of 1977, or SMCRA, and the federal Clean Water
    Act, or CWA, designed to reduce the harmful environmental
    consequences of mountain-top mining in the Appalachian region.
    As part of the June 2009 interagency memorandum of
    understanding, the Corps proposed to suspend and modify
    Nationwide Permit 21, or NWP 21, in the Appalachian region of
    Kentucky, Ohio, Pennsylvania, Tennessee, Virginia and West
    Virginia to prohibit its use to authorize discharges of fill
    material into waters of the United States for mountain-top
    mining. Two of our permit applications that cover
    1.1&#160;million tons of our coal reserves are currently being
    reviewed by the EPA under its enhanced review procedures even
    though the mining activities in question do not utilize
    mountain-top mining, a method of mining we do not employ. As of
    March&#160;19, 2010, the two permits have not been issued.
    Additional permits could be delayed in the future if the EPA
    continues to apply these enhanced review procedures to
    applications for these permits in connection with coal mining in
    Appalachia. If the required permits are not issued or renewed in
    a timely fashion or at all, or if permits issued or renewed are
    conditioned in a manner that restricts our ability to
    efficiently and economically conduct our mining activities, we
    could suffer a material reduction in our production, and our
    operations and there could be a material adverse effect on our
    ability to make cash distributions to our unitholders.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    depend on a limited number of customers for a significant
    portion of our revenues, and the loss of, or significant
    reduction in, purchases by any of them could adversely affect
    our results of operations and cash available for distribution to
    our unitholders.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We derived 77% of our revenues from coal sales to our five
    largest customers for the year ended December&#160;31, 2009, and
    as of March&#160;19, 2010, we had long-term coal sales contracts
    in place with these same customers for 75% of our estimated coal
    production from operations for the year ending December&#160;31,
    2010. We expect to continue to derive a substantial amount of
    our total revenues from a small number of customers in the
    future. However, we may be unsuccessful in renewing long-term
    coal sales contracts with our largest customers, and those
    customers may discontinue or reduce purchasing coal from us. If
    any of our largest customers significantly reduces the
    quantities of coal it purchases from us and if we are unable to
    sell such excess coal to our other customers on terms
    substantially similar to the terms under our current long-term
    coal sales contracts, our business, our results of operations
    and our ability to make distributions to our unitholders could
    be adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If the
    assumptions underlying our reclamation and mine closure
    obligations are materially inaccurate, our costs could be
    significantly greater than anticipated.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All of the mines we operate are surface mining operations. The
    SMCRA and counterpart state laws and regulations establish
    operational, reclamation and closure standards for all aspects
    of surface mining. We estimate our total reclamation and
    mine-closing liabilities based on permit requirements,
    engineering studies, including the estimated life of our mines,
    and our engineering expertise related to the permit
    requirements. As of December&#160;31, 2009, we had accrued a
    reserve of approximately $13.3&#160;million for future
    reclamation and mine-closure liabilities. The estimate of
    ultimate reclamation liability is reviewed periodically by our
    management and engineers. The estimated liability can change
    significantly if actual costs vary from our original assumptions
    or if governmental regulations change significantly. GAAP
    requires that asset retirement obligations be recorded as a
    liability based on fair value, which reflects the present value
    of the estimated future cash flows. In estimating future cash
    flows, we consider the estimated current cost of reclamation and
    apply inflation rates and a third-party profit, as necessary.
    The third-party profit is an estimate of the approximate markup
    that would be charged by contractors for work performed on
    behalf of us. The resulting estimated reclamation and mine
    closure obligations could change significantly if actual results
    change significantly from our assumptions, which could have a
    material adverse effect on our financial condition or results of
    operations. Please read &#147;Management&#146;s Discussion and
    Analysis of Financial Condition and Results of
    Operations&#160;&#151; Liquidity and Capital
    Resources&#160;&#151; Off-Balance Sheet Arrangements&#148; for a
    description of these liabilities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Debt
    we incur in the future may limit our flexibility to obtain
    financing and to pursue other business
    opportunities.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our future level of debt could have important consequences to
    us, including the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our ability to obtain additional financing, if necessary, for
    working capital, capital expenditures, acquisitions or other
    purposes may be impaired or such financing may not be available
    on favorable terms;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our funds available for operations, future business
    opportunities and distributions to unitholders will be reduced
    by that portion of our cash flow required to make interest
    payments on our debt;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    we may be more vulnerable to competitive pressures or a downturn
    in our business or the economy generally; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our flexibility in responding to changing business and economic
    conditions may be limited.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our ability to service our debt will depend upon, among other
    things, our future financial and operating performance, which
    will be affected by prevailing economic conditions and
    financial, business, regulatory and other factors, some of which
    are beyond our control. If our operating results are not
    sufficient to service our future indebtedness, we will be forced
    to take actions such as reducing distributions, reducing or
    delaying our
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    business activities, acquisitions, investments or capital
    expenditures, selling assets or seeking additional equity
    capital. We may not be able to effect any of these actions on
    satisfactory terms or at all.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Restrictions
    in our new credit facility could adversely affect our business,
    financial condition, results of operations, ability to make
    distributions to unitholders and value of our common
    units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to enter into a new credit facility concurrently with
    the closing of the offering. Our new credit facility is likely
    to limit our ability to, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    incur additional debt;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    make distributions on or redeem or repurchase units;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    make certain investments and acquisitions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    incur certain liens or permit them to exist;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    enter into certain types of transactions with affiliates;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    merge or consolidate with another company; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    transfer or otherwise dispose of assets.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our new credit facility also will likely contain covenants
    requiring us to maintain certain financial ratios.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provisions of our new credit facility may affect our ability
    to obtain future financing and pursue attractive business
    opportunities and our flexibility in planning for, and reacting
    to, changes in business conditions. In addition, a failure to
    comply with the provisions of our new credit facility could
    result in a default or an event of default that could enable our
    lenders to declare the outstanding principal of that debt,
    together with accrued and unpaid interest, to be immediately due
    and payable. If the payment of our debt is accelerated, our
    assets may be insufficient to repay such debt in full, and our
    unitholders could experience a partial or total loss of their
    investment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    availability and reliability of transportation could impair our
    ability to supply coal to our customers.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our coal is transported to customers by barge, truck and rail.
    Disruption of these transportation services because of
    weather-related problems (such as river flooding), mechanical
    difficulties, train derailment, bridge or structural concerns,
    infrastructure damage, whether caused by ground instability,
    accidents or otherwise, strikes, lock-outs, lack of fuel or
    maintenance items, fuel costs, transportation delays, accidents,
    terrorism or domestic catastrophe or other events could
    temporarily or over the long term impair our ability to supply
    coal to our customers and our customers&#146; ability to take
    delivery of our coal and, therefore, could have a material
    adverse effect on our business, financial condition or results
    of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    operations may impact the environment or cause environmental
    contamination, which could result in material liabilities to
    us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our operations use hazardous materials, generate limited
    quantities of hazardous wastes and may affect runoff or drainage
    water. In the event of environmental contamination or a release
    of hazardous materials, we could become subject to claims for
    toxic torts, natural resource damages and other damages and for
    the investigation and clean up of soil, surface water,
    groundwater, and other media, as well as abandoned and closed
    mines located on property we operate. Such claims may arise out
    of conditions at sites that we currently own or operate, as well
    as at sites that we previously owned or operated, or may
    acquire. Our liability for such claims may be joint and several,
    so that we may be held responsible for more than our share of
    the contamination or other damages, or even for the entire share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain coal refuse areas and slurry impoundments at our
    Tuscarawas County and Muhlenberg County mining complexes. Such
    areas and impoundments are subject to extensive regulation. One
    of those impoundments overlies a mined out area, which can pose
    a heightened risk of structural failure and of damages arising
    out of such failure. When a slurry impoundment experiences a
    structural failure, it could
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    release large volumes of coal slurry into the surrounding
    environment, which in turn can result in extensive damage to the
    environment and natural resources, such as bodies of water. A
    failure may also result in civil or criminal fines, penalties,
    personal injuries and property damages, and damage to wildlife
    or natural resources.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Surface or groundwater that comes in contact with materials
    resulting from mining activities can become acidic and contain
    elevated levels of dissolved metals, a condition referred to as
    &#147;acid mine drainage,&#148; or AMD. We have seven mining
    permits that are identified on Ohio&#146;s Inventory of
    Long-Term AMD sites. Only one of these sites, associated with
    the Strasburg Wash Plant, requires continuous AMD treatment, for
    which we have estimated the present value of the projected
    annual treatment cost at less than $10,000 per year. While we
    anticipate that AMD treatment will not be required once
    reclamation is completed, it is possible that AMD treatment will
    be required for some time and current AMD treatment costs could
    escalate due to changes in flow or water quality. These and
    other similar impacts that our operations may have on the
    environment, as well as exposures to hazardous substances or
    wastes associated with our operations, could result in costs and
    liabilities that could have a material adverse effect on us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If the
    third-party sources from which we purchase coal are unable to
    fulfill the delivery terms of their contracts, our results of
    operations could be adversely affected.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on our expected production for 2010, we will need to
    purchase coal from third-party sources to fulfill a portion of
    our committed coal deliveries for 2010 under our coal sales
    contracts. We have entered into a long-term coal purchase
    contract that will cover most of our expected coal purchases for
    2010 and a portion of our expected coal purchases for at least
    three years thereafter. The price we pay for the coal purchased
    under this contract is based on a minimum price and the price we
    receive under our long-term coal sales contracts for such coal.
    From time to time, we also purchase coal from other producers at
    spot prices. Our profitability and exposure to loss on our coal
    purchases are dependent upon the price of the coal we purchase
    and the reliability, including the financial viability, of the
    third-party coal producers from whom we purchase. Operational
    difficulties, changes in demand and other factors could affect
    the availability, pricing and quality of the coal we purchase
    and the price(s) at which we resell such purchased coal.
    Disruptions in the quantities or qualities of the coal we
    purchase could affect our ability to fill our customer orders or
    require us to purchase coal at higher prices from other sources
    in order to satisfy those orders. If we are unable to fill a
    customer order due to our inability to purchase coal from third
    parties in sufficient quantities, qualities or at attractive
    prices, our results of operations could be adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    ability to operate our business effectively could be impaired if
    we fail to attract and retain key management
    personnel.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our ability to operate our business and implement our strategies
    depends, in part, on the continued contributions of Charles C.
    Ungurean and our other executive officers and key employees. In
    particular, we depend significantly on Mr. Ungurean&#146;s
    long-standing relationships within our industry. The loss of any
    of our senior executives could have a material adverse effect on
    our business unless and until we find a qualified replacement. A
    limited number of persons exist with the requisite experience
    and skills to serve in our senior management positions. We may
    not be able to locate or employ qualified executives on
    acceptable terms. In addition, we believe that our future
    success will depend on our continued ability to attract and
    retain highly skilled management personnel with coal industry
    experience. Competition for these persons in the coal industry
    is intense and we may not be able to successfully recruit, train
    or retain qualified managerial personnel. As a publicly traded
    partnership, our future success will also depend on our ability
    to hire and retain management with relevant experience. We may
    not be able to continue to employ key personnel or attract and
    retain qualified personnel in the future, and our failure to
    retain or attract key personnel could have a material adverse
    effect on our ability to effectively operate our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">A
    shortage of skilled labor in the mining industry could reduce
    labor productivity and increase costs, which could have a
    material adverse effect on our business and results of
    operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Efficient coal mining using modern techniques and equipment
    requires skilled laborers in multiple disciplines such as
    equipment operators, mechanics and engineers, among others. We
    have from time to time
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    encountered shortages for these types of skilled labor. If we
    experience shortages of skilled labor in the future, our labor
    and overall productivity or costs could be materially and
    adversely affected. If coal prices decrease in the future or our
    labor prices increase, or if we experience materially increased
    health and benefit costs with respect to our employees, our
    results of operations could be materially and adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our work force could become unionized in the future, which
    could adversely affect the stability of our production and
    materially reduce our profitability.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All of our mines are operated by non-union employees. Our
    employees have the right at any time under the National Labor
    Relations Act to form or affiliate with a union. If our
    employees choose to form or affiliate with a union and the terms
    of a union collective bargaining agreement are significantly
    different from our current compensation and job assignment
    arrangements with our employees, these arrangements could
    adversely affect the stability of our production and materially
    reduce our profitability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Inaccuracies in our estimates of our coal reserves could
    result in lower than expected revenues or higher than expected
    costs.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our future performance depends on, among other things, the
    accuracy of the estimates of our proven and probable coal
    reserves. The estimates of our proven and probable reserves
    associated with our surface mining operations in Ohio are
    derived from our internal estimates, which estimates were
    audited by John&#160;T. Boyd Company, an independent mining and
    geological consulting firm. The estimates of our proven and
    probable reserves associated with our surface mining operations
    in the Illinois Basin and our proven and probable underground
    coal reserves are derived from reserve reports prepared by
    John&#160;T. Boyd Company. These estimates are based on geologic
    data, economic data such as cost of production and projected
    sale prices and assumptions concerning permitability and
    advances in mining technology. The estimates of our proven and
    probable coal reserves as to both quantity and quality are
    periodically updated to reflect the production of coal from the
    reserves, updated geologic models and mining recovery data, coal
    reserves recently purchased or otherwise acquired and estimated
    costs of production and sales prices. There are numerous factors
    and assumptions inherent in estimating the quantities and
    qualities of, and costs to mine, coal reserves, any one of which
    may vary considerably from actual results. These factors and
    assumptions include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    quality of the coal;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    geologic and mining conditions, which may not be fully
    identified by available exploration data or may differ from our
    experiences in areas where we currently mine;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the percentage of coal ultimately recoverable;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the assumed effects of regulation, including the issuance of
    required permits, and taxes, including severance and excise
    taxes and royalties, and other payments to governmental agencies;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    assumptions concerning the timing for the development of
    reserves; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    assumptions concerning equipment and productivity, future coal
    prices, operating costs, including for critical supplies such as
    fuel, tires and explosives, capital expenditures and development
    and reclamation costs.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result, estimates of the quantities and qualities of
    economically recoverable coal attributable to any particular
    group of properties, classifications of reserves based on risk
    of recovery, estimated cost of production, and estimates of
    future net cash flows expected from these properties as prepared
    by different engineers and accounting personnel, or by the same
    engineers and accounting personnel at different times, may vary
    materially due to changes in the above factors and assumptions.
    Actual production recovered from identified reserve areas and
    properties, and revenues and expenditures associated with our
    mining operations, may vary materially from estimates. Any
    inaccuracy in the estimates related to our reserves could have a
    material adverse effect on our ability to make cash
    distributions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our ability to collect payments from our customers could
    be impaired if their creditworthiness deteriorates.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our ability to receive payment for coal sold and delivered
    depends on the continued creditworthiness of our customers. The
    current economic volatility and tightening credit markets
    increase the risk that we may not
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    be able to collect payments from our customers or be required to
    continue to deliver coal even if the customer&#146;s
    creditworthiness deteriorates. A continuation or worsening of
    current economic conditions or other prolonged global or
    U.S.&#160;recessions could also impact the creditworthiness of
    our customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Approximately 12% of our 2009 sales were to coal brokers, who
    resell our coal to end users, including utilities. Under some of
    these arrangements, we have contractual privity only with the
    broker and may not be able to pursue claims against the end
    users in connection with these sales if we do not receive
    payment from the broker, who may only have limited assets. We
    expect our sales through brokers to increase in 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the creditworthiness of a customer declines, this would
    increase the risk that we may not be able to collect payment for
    all coal sold and delivered to or on behalf of that customer. If
    we determine that a customer is not creditworthy, we may not be
    required to deliver coal under the customer&#146;s coal sales
    contract. If we are able to withhold shipments, we may decide to
    sell the customer&#146;s coal on the spot market, which may be
    at prices lower than the contract price, or we may be unable to
    sell the coal at all. Furthermore, the bankruptcy of any of our
    customers could have a material adverse effect on our financial
    position. In addition, competition with other coal suppliers
    could force us to extend credit to customers and on terms that
    could increase the risk of payment default.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Failure to obtain, maintain or renew our security
    arrangements, such as surety bonds or letters of credit, in a
    timely manner and on acceptable terms could have an adverse
    effect on our cash available for distribution to our
    unitholders.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Federal and state laws require us to secure the performance of
    certain long-term obligations, such as mine closure or
    reclamation costs. The amount of these security arrangements is
    substantial, with total amounts of surety bonds at
    December&#160;31, 2009 of approximately $31.3&#160;million,
    which were supported by letters of credit of $6.9&#160;million.
    Federal and state governments could increase bonding
    requirements in the future. Certain business transactions, such
    as coal leases and other obligations, may also require bonding.
    We may have difficulty procuring or maintaining our surety
    bonds. Our bond issuers may demand higher fees, additional
    collateral, including putting up letters of credit or posting
    cash collateral, or other terms less favorable to us upon those
    renewals. Our ability to obtain or renew our surety bonds could
    be impacted by a variety of other factors including lack of
    availability, unfavorable market terms, the exercise by
    third-party surety bond issuers of their right to refuse to
    renew the surety bonds and restrictions on availability of
    collateral for current and future third-party surety bond
    issuers under the terms of any credit arrangements then in
    place. Surety bond issuers may demand terms that are less
    favorable to us than the terms we currently receive and there
    may be fewer companies willing to issue these bonds. Due to
    current economic conditions and the volatility of the financial
    markets, surety bond providers may be less willing to provide us
    with surety bonds or maintain existing surety bonds and we may
    have greater difficulty satisfying the liquidity requirements
    under our existing surety bond contracts. If we do not maintain
    sufficient borrowing capacity or have other resources to satisfy
    our surety and bonding requirements, our operations and cash
    available for distribution to our unitholders could be adversely
    affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our management team does not have experience managing our
    business as a stand-alone publicly traded partnership, and if
    they are unable to manage our business as a publicly traded
    partnership our business may be affected.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our management team does not have experience managing our
    business as a publicly traded partnership. If we are unable to
    manage and operate our partnership as a publicly traded
    partnership, our business and results of operations will be
    adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We will be required by Section&#160;404 of the
    Sarbanes-Oxley Act to evaluate the effectiveness of our internal
    controls. If we are unable to establish and maintain effective
    internal controls, our financial condition and operating results
    could be adversely affected.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are in the process of evaluating our internal controls
    systems to allow management to report on, and our independent
    auditors to audit, our internal controls over financial
    reporting. We are also in the process of performing the system
    and process evaluation and testing (and any necessary
    remediation) required to comply with the management
    certification and auditor attestation requirements of
    Section&#160;404 of the Sarbanes-Oxley Act of 2002. We will be
    required to comply with Section&#160;404 for the year ending
    December&#160;31, 2011.
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    However, we cannot be certain as to the timing of completion of
    our evaluation, testing and remediation actions or the impact of
    the same on our operations. Furthermore, upon completion of this
    process, we may identify control deficiencies of varying degrees
    of severity under applicable SEC and Public Company Accounting
    Oversight Board rules and regulations that remain unremediated.
    As a public company, we will be required to report, among other
    things, control deficiencies that constitute a &#147;material
    weakness&#148; or changes in internal controls that, or that are
    reasonably likely to, materially affect internal controls over
    financial reporting. A &#147;material weakness&#148; is a
    significant deficiency or combination of significant
    deficiencies that results in more than a remote likelihood that
    a material misstatement of the annual or interim consolidated
    financial statements will not be prevented or detected. In
    connection with the audit of our financial statements, a
    significant deficiency in our internal controls was identified
    that related to 2008. This significant deficiency related to the
    timeliness and thoroughness of our account reconciliation and
    review procedures. Management has taken steps to remediate this
    significant deficiency by restructuring and refining its account
    reconciliation process and tracking. While we believe that this
    significant deficiency has been remediated, we may have
    additional significant deficiencies in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we fail to implement the requirements of Section&#160;404 in
    a timely manner, we might be subject to sanctions or
    investigation by regulatory authorities such as the SEC. In
    addition, failure to comply with Section&#160;404 or the report
    by us of a material weakness may cause investors to lose
    confidence in our consolidated financial statements, and as a
    result our unit price may be adversely affected. If we fail to
    remedy any material weakness, our consolidated financial
    statements may be inaccurate, we may face restricted access to
    the capital markets and our unit price may be adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Terrorist attacks and threats, escalation of military
    activity in response to these attacks or acts of war could have
    a material adverse effect on our business, financial condition
    or results of operations.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Terrorist attacks and threats, escalation of military activity
    or acts of war may have significant effects on general economic
    conditions, fluctuations in consumer confidence and spending and
    market liquidity, each of which could materially and adversely
    affect our business. Future terrorist attacks, rumors or threats
    of war, actual conflicts involving the United States or its
    allies, or military or trade disruptions affecting our customers
    may significantly affect our operations and those of our
    customers. Strategic targets, such as energy-related assets and
    transportation assets, may be at greater risk of future
    terrorist attacks than other targets in the United States.
    Disruption or significant increases in energy prices could
    result in government-imposed price controls. It is possible that
    any of these occurrences, or a combination of them, could have a
    material adverse effect on our business, financial condition and
    results of operations.
</DIV>

<A name='118'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Inherent in an Investment in Us</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our partnership agreement limits our general
    partner&#146;s fiduciary duties to our unitholders and restricts
    the remedies available to our unitholders for actions taken by
    our general partner that might otherwise constitute breaches of
    fiduciary duty.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Fiduciary duties owed to our unitholders by our general partner
    are prescribed by law and the partnership agreement. The
    Delaware Revised Uniform Limited Partnership Act, or the
    Delaware Act, provides that Delaware limited partnerships may,
    in their partnership agreements, restrict the fiduciary duties
    owed by the general partner to limited partners and the
    partnership. Our partnership agreement contains provisions that
    reduce the standards to which our general partner would
    otherwise be held by state fiduciary duty law. For example, our
    partnership agreement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    limits the liability and reduces the fiduciary duties of our
    general partner, while also restricting the remedies available
    to our unitholders for actions that, without these limitations,
    might constitute breaches of fiduciary duty. As a result of
    purchasing common units, our unitholders consent to some actions
    and conflicts of interest that might otherwise constitute a
    breach of fiduciary or other duties under applicable state law;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    permits our general partner to make a number of decisions in its
    individual capacity, as opposed to in its capacity as our
    general partner. This entitles our general partner to consider
    only the interests and
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    32
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    factors that it desires, and it has no duty or obligation to
    give any consideration to any interest of, or factors affecting,
    us, our affiliates or any limited partner. Examples include the
    exercise of its limited call right, its voting rights with
    respect to the units it owns, its registration rights and its
    determination whether or not to consent to any merger or
    consolidation of the partnership;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    provides that our general partner shall not have any liability
    to us or our unitholders for decisions made in its capacity as
    general partner so long as it acted in good faith, meaning it
    believed that the decision was in the best interests of the
    partnership;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    generally provides that affiliated transactions and resolutions
    of conflicts of interest not approved by the conflicts committee
    of the board of directors of our general partner, or the
    Conflicts Committee, and not involving a vote of our unitholders
    must be on terms no less favorable to us than those generally
    being provided to or available from unrelated third parties or
    be &#147;fair and reasonable&#148; to us and that, in
    determining whether a transaction or resolution is &#147;fair
    and reasonable,&#148; our general partner may consider the
    totality of the relationships between the parties involved,
    including other transactions that may be particularly
    advantageous or beneficial to us; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    provides that our general partner and its officers and directors
    will not be liable for monetary damages to us, our limited
    partners or assignees for any acts or omissions unless there has
    been a final and non-appealable judgment entered by a court of
    competent jurisdiction determining that our general partner or
    those other persons acted in bad faith or engaged in fraud or
    willful misconduct.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By purchasing a common unit, a common unitholder will become
    bound by the provisions of the partnership agreement, including
    the provisions described above. Please read &#147;Description of
    the Common Units&#160;&#151; Transfer of Common Units.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    general partner and its affiliates have conflicts of interest,
    and their limited fiduciary duties to our unitholders may permit
    them to favor their own interests to the detriment of our
    unitholders.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the offering, C&#038;T Coal will own
    a&#160;&#160;&#160;&#160;&#160;% limited partner interest in us
    (or a&#160;&#160;&#160;&#160;&#160;% limited partner interest in
    us if the underwriters exercise their option to purchase
    additional common units in full), AIM Oxford will own
    a&#160;&#160;&#160;&#160;&#160;% limited partner interest in us
    (or a&#160;&#160;&#160;&#160;&#160;% limited partner interest in
    us if the underwriters exercise their option to purchase
    additional common units in full), and C&#038;T Coal and AIM
    Oxford will own and control our general partner. Although our
    general partner has certain fiduciary duties to manage us in a
    manner beneficial to us and our unitholders, the executive
    officers and directors of our general partner have a fiduciary
    duty to manage our general partner in a manner beneficial to its
    owners. Furthermore, since certain executive officers and
    directors of our general partner are executive officers or
    directors of affiliates of our general partner, conflicts of
    interest may arise between C&#038;T Coal and AIM Oxford and
    their affiliates, including our general partner, on the one
    hand, and us and our unitholders, on the other hand. As a result
    of these conflicts, our general partner may favor its own
    interests and the interests of its affiliates over the interests
    of our unitholders. Please read &#147;&#151;&#160;Our
    partnership agreement limits our general partner&#146;s
    fiduciary duties to our unitholders and restricts the remedies
    available to our unitholders for actions taken by our general
    partner that might otherwise constitute breaches of fiduciary
    duty.&#148; The risk to our unitholders due to such conflicts
    may arise because of the following factors, among others:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner is allowed to take into account the
    interests of parties other than us, such as C&#038;T Coal and
    AIM Oxford, in resolving conflicts of interest, which has the
    effect of limiting its fiduciary duty to our unitholders;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    neither our partnership agreement nor any other agreement
    requires owners of our general partner to pursue a business
    strategy that favors us. Executive officers and directors of our
    general partner&#146;s owners have a fiduciary duty to make
    these decisions in the best interest of their owners, which may
    be contrary to our interests;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner determines the amount and timing of asset
    purchases and sales, capital expenditures, borrowings, issuances
    of additional partnership securities and reserves, each of which
    can affect the amount of cash that is available for distribution
    to our unitholders;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner determines our estimated maintenance capital
    expenditures, which reduce operating surplus, and that
    determination can affect the amount of cash that is distributed
    to our unitholders and the ability of the subordinated units to
    convert to common units;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    in some instances, our general partner may cause us to borrow
    funds in order to permit the payment of cash distributions, even
    if the purpose or effect of the borrowing is to make a
    distribution on the subordinated units, to make incentive
    distributions or to accelerate the expiration of the
    subordination periods;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner determines which costs incurred by it and
    its affiliates are reimbursable by us;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our partnership agreement does not restrict our general partner
    from causing us to pay it or its affiliates for any services
    rendered on terms that are fair and reasonable to us or entering
    into additional contractual arrangements with any of these
    entities on our behalf;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner intends to limit its liability regarding our
    contractual and other obligations;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner may exercise its limited right to call and
    purchase common units if it and its affiliates own more than 80%
    of the common units;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner controls the enforcement of obligations owed
    to us by it and its affiliates; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner decides whether to retain separate counsel,
    accountants or others to perform services for us.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, AIM currently holds substantial interests in other
    companies in the energy and natural resource sectors. Our
    partnership agreement provides that our general partner will be
    restricted from engaging in any business activities other than
    acting as our general partner and those activities incidental to
    its ownership interest in us. However, AIM and AIM Oxford are
    not prohibited from engaging in other businesses or activities,
    including those that might be in direct competition with us. As
    a result, they could potentially compete with us for acquisition
    opportunities and for new business or extensions of the existing
    services provided by us. Please read &#147;Conflicts of Interest
    and Fiduciary Duties&#160;&#151; Conflicts of Interest &#151;
    AIM Oxford and AIM, affiliates of our general partner, may
    compete with us.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of our partnership agreement, the doctrine
    of corporate opportunity, or any analogous doctrine, does not
    apply to our general partner or any of its affiliates, including
    its executive officers, directors and owners. Any such person or
    entity that becomes aware of a potential transaction, agreement,
    arrangement or other matter that may be an opportunity for us
    will not have any duty to communicate or offer such opportunity
    to us. Any such person or entity will not be liable to us or to
    any limited partner for breach of any fiduciary duty or other
    duty by reason of the fact that such person or entity pursues or
    acquires such opportunity for itself, directs such opportunity
    to another person or entity or does not communicate such
    opportunity or information to us. This may create actual and
    potential conflicts of interest between us and affiliates of our
    general partner and result in less than favorable treatment of
    us and our unitholders. Please read &#147;Conflicts of Interest
    and Fiduciary Duties.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our unitholders have limited voting rights and are not
    entitled to elect our general partner or its directors or
    initially to remove our general partner without its
    consent.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unlike the holders of common stock in a corporation, our
    unitholders have only limited voting rights on matters affecting
    our business and, therefore, limited ability to influence
    management&#146;s decisions regarding our business. Our
    unitholders will have no right to elect our general partner or
    its board of directors on an annual or other continuing basis.
    The board of directors of our general partner is chosen entirely
    by its members and not by our unitholders. Furthermore, if our
    unitholders are dissatisfied with the performance of our general
    partner, they will have limited ability to remove our general
    partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our unitholders will be unable initially to remove our general
    partner without its consent because affiliates of our general
    partner will own sufficient units upon the consummation of this
    offering to be able to prevent removal of our general partner.
    The vote of the holders of at least 80% of all outstanding
    common units and subordinated units voting together as a single
    class is required to remove our general partner.
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following the closing of this offering, affiliates of our
    general partner will own&#160;&#160;&#160;&#160;&#160;% of our
    common units and subordinated units
    (or&#160;&#160;&#160;&#160;&#160;% of our common units and
    subordinated units, if the underwriters exercise their option to
    purchase additional common units in full). Also, if our general
    partner is removed without cause during the subordination period
    and units held by our general partner and its affiliates are not
    voted in favor of that removal, all remaining subordinated units
    will automatically be converted into common units and any
    existing arrearages on the common units will be extinguished. A
    removal of our general partner under these circumstances would
    adversely affect the common units by prematurely eliminating
    their distribution and liquidation preference over the
    subordinated units, which would otherwise have continued until
    we had met certain distribution and performance tests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cause is narrowly defined in our partnership agreement to mean
    that a court of competent jurisdiction has entered a final,
    non-appealable judgment finding our general partner liable for
    actual fraud or willful misconduct in its capacity as our
    general partner. Cause does not include most cases of charges of
    poor management of the business, so the removal of our general
    partner during the subordination period because of our
    unitholders&#146; dissatisfaction with our general
    partner&#146;s performance in managing our partnership will most
    likely result in the termination of the subordination period. As
    a result of these limitations, the price at which the common
    units will trade could be diminished because of the absence or
    reduction of a takeover premium in the trading price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our unitholders will experience immediate and substantial
    dilution of $&#160;&#160;&#160;&#160;&#160; per common
    unit.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The assumed initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per common unit exceeds pro
    forma net tangible book value of $&#160;&#160;&#160;&#160;&#160;
    per common unit. As a result, our unitholders will incur
    immediate and substantial dilution of
    $&#160;&#160;&#160;&#160;&#160; per common unit. This dilution
    results primarily because the assets contributed to us by
    affiliates of our general partner are recorded at their
    historical cost and not their fair value. Please read
    &#147;Dilution.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>The control of our general partner may be transferred to a
    third party without unitholder consent.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may transfer its general partner interest in
    us to a third party in a merger or in a sale of all or
    substantially all of its assets without the consent of our
    unitholders. Furthermore, there is no restriction in our
    partnership agreement on the ability of the members of our
    general partner to transfer their respective membership
    interests in our general partner to a third party. The new
    members of our general partner would then be in a position to
    replace the board of directors and executive officers of our
    general partner with their own choices and to control the
    decisions and actions of the board of directors and executive
    officers of our general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>The incentive distribution rights of our general partner
    may be transferred to a third party without unitholder
    consent.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may transfer its incentive distribution
    rights to a third party at any time without the consent of our
    unitholders. If our general partner transfers its incentive
    distribution rights to a third party but retains its general
    partner interest, our general partner may not have the same
    incentive to grow our partnership and increase quarterly
    distributions to unitholders over time as it would if it had
    retained ownership of its incentive distribution rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our general partner has a limited call right that may
    require our unitholders to sell their common units at an
    undesirable time or price.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon consummation of this offering, C&#038;T Coal and AIM Oxford
    will own an aggregate of&#160;&#160;&#160;&#160;&#160;% of our
    common units and subordinated units
    (or&#160;&#160;&#160;&#160;&#160;% of our common units and
    subordinated units, if the underwriters exercise their option to
    purchase additional common units in full). If at any time our
    general partner and its affiliates own more than 80% of the
    common units, our general partner will have the right, but not
    the obligation, which it may assign to any of its affiliates or
    to us, to acquire all, but not less than all, of the common
    units held by unaffiliated persons at a price not less than the
    then-current market price. As a result, our unitholders may be
    required to sell their common units at an undesirable time or
    price and may not receive any return on their investment. Our
    unitholders may also incur a tax liability upon a sale of their
    common units. Our general partner is not obligated to obtain a
    fairness opinion regarding the value of the common units to be
    repurchased by it upon exercise of the limited call right. There
    is no restriction in our
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    partnership agreement that prevents our general partner from
    issuing additional common units and exercising its limited call
    right. If our general partner exercised its limited call right,
    the effect would be to take us private and, if the common units
    were subsequently deregistered, we would no longer be subject to
    the reporting requirements of the Securities Exchange Act of
    1934, or the Exchange Act. For additional information about the
    limited call right, please read &#147;The Partnership
    Agreement&#160;&#151; Limited Call Right.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We may issue additional units without unitholder approval,
    which would dilute unitholder interests.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At any time, we may issue an unlimited number of limited partner
    interests of any type without the approval of our unitholders.
    Further, our partnership agreement does not prohibit the
    issuance of equity securities that may effectively rank senior
    to our common units. The issuance by us of additional common
    units or other equity securities of equal or senior rank will
    have the following effects:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our unitholders&#146; proportionate ownership interest in us
    will decrease;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the amount of cash available for distribution on each unit may
    decrease;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    because a lower percentage of total outstanding units will be
    subordinated units, the risk that a shortfall in the payment of
    the minimum quarterly distribution will be borne by our common
    unitholders will increase;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the relative voting strength of each previously outstanding unit
    may be diminished; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the market price of the common units may decline.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our general partner may, without unitholder approval,
    elect to cause us to issue common units and general partner
    units to it in connection with a resetting of the target
    distribution levels related to its incentive distribution
    rights. This could result in lower distributions to holders of
    our common units.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner has the right, at any time when there are no
    subordinated units outstanding and it has received distributions
    on its incentive distribution rights at the highest level to
    which it is entitled (48%) for each of the prior four
    consecutive fiscal quarters, to reset the initial target
    distribution levels at higher levels based on our distributions
    at the time of the exercise of the reset election. Following a
    reset election by our general partner, the minimum quarterly
    distribution will be adjusted to equal the reset minimum
    quarterly distribution and the target distribution levels will
    be reset to correspondingly higher levels based on percentage
    increases above the reset minimum quarterly distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If our general partner elects to reset the target distribution
    levels, it will be entitled to receive a number of common units
    and general partner units. The number of common units to be
    issued to our general partner will be equal to that number of
    common units that would have entitled their holder to an average
    aggregate quarterly cash distribution in the prior two quarters
    equal to the average of the distributions to our general partner
    on the incentive distribution rights in the prior two quarters.
    Our general partner will be issued the number of general partner
    units necessary to maintain our general partner&#146;s interest
    in us that existed immediately prior to the reset election. We
    anticipate that our general partner would exercise this reset
    right in order to facilitate acquisitions or internal growth
    projects that would not be sufficiently accretive to cash
    distributions per common unit without such conversion. It is
    possible, however, that our general partner could exercise this
    reset election at a time when it is experiencing, or expects to
    experience, declines in the cash distributions it receives
    related to its incentive distribution rights and may, therefore,
    desire to be issued common units rather than retain the right to
    receive distributions on its incentive distribution rights based
    on the initial target distribution levels. As a result, a reset
    election may cause our common unitholders to experience a
    reduction in the amount of cash distributions that our common
    unitholders would have otherwise received had we not issued new
    common units and general partner units to our general partner in
    connection with resetting the target distribution levels. Please
    read &#147;How We Make Cash Distributions&#160;&#151; General
    Partner&#146;s Right to Reset Incentive Distribution
    Levels.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Cost reimbursements due to our general partner and its
    affiliates will reduce cash available for distribution to our
    unitholders.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to making any distribution on the common units, we will
    reimburse our general partner and its affiliates for all
    expenses they incur on our behalf, which will be determined by
    our general partner in its sole
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    discretion in accordance with the terms of our partnership
    agreement. In determining the costs and expenses allocable to
    us, our general partner is subject to its fiduciary duty, as
    modified by our partnership agreement, to the limited partners,
    which requires it to act in good faith. These expenses will
    include all costs incurred by our general partner and its
    affiliates in managing and operating us. We are managed and
    operated by executive officers and directors of our general
    partner. Please read &#147;Cash Distribution Policy and
    Restrictions on Distributions,&#148; &#147;Certain Relationships
    and Related Party Transactions&#148; and &#147;Conflicts of
    Interest and Fiduciary Duties&#160;&#151; Conflicts of
    Interest.&#148; The reimbursement of expenses and payment of
    fees, if any, to our general partner and its affiliates could
    reduce the amount of available cash for distribution to our
    unitholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>There is no existing market for our common units, and a
    trading market that will provide you with adequate liquidity may
    not develop. The price of our common units may fluctuate
    significantly, and our unitholders could lose all or part of
    their investment.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the offering, there has been no public market for the
    common units. After the offering, there will be
    only&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    publicly traded common units
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    publicly traded common units, if the underwriters exercise their
    option to purchase additional common units in full). We do not
    know the extent to which investor interest will lead to the
    development of a trading market or how liquid that market might
    be. Our unitholders may not be able to resell their common units
    at or above the initial public offering price. Additionally, the
    lack of liquidity may result in wide bid-ask spreads, contribute
    to significant fluctuations in the market price of the common
    units and limit the number of investors who are able to buy the
    common units. The initial public offering price for the common
    units has been determined by negotiations between us and the
    representative of the underwriters and may not be indicative of
    the market price of the common units that will prevail in the
    trading market. The market price of our common units may decline
    below the initial public offering price. The market price of our
    common units may also be influenced by many factors, some of
    which are beyond our control, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our quarterly distributions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our quarterly or annual earnings or those of other companies in
    our industry;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    loss of a large customer;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    announcements by us or our competitors of significant contracts
    or acquisitions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    changes in accounting standards, policies, guidance,
    interpretations or principles;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    changes in interest rates;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    general economic conditions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the failure of securities analysts to cover our common units
    after this offering or changes in financial estimates by
    analysts;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    future sales of our common units; and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the other factors described in these &#147;Risk Factors.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    will incur increased costs as a result of being a publicly
    traded partnership.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have no history operating as a publicly traded partnership.
    As a publicly traded partnership, we will incur significant
    legal, accounting and other expenses that we did not incur as a
    private company. We expect that complying with the rules and
    regulations implemented by the SEC and the New York Stock
    Exchange will increase our legal and financial compliance costs
    and make activities more time-consuming and costly. For example,
    as a result of becoming a publicly traded partnership, we are
    required to have three independent directors, create additional
    board committees and adopt policies regarding internal controls
    and disclosure controls and procedures, including the
    preparation of reports on internal controls over financial
    reporting. In addition, we will incur additional costs
    associated with our publicly traded partnership reporting
    requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our unitholders who fail to furnish certain information
    requested by our general partner or who our general partner,
    upon receipt of such information, determines are not eligible
    citizens will not be entitled to </I></B>
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>receive distributions or allocations of income or loss on
    their common units and their common units will be subject to
    redemption.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may require each limited partner or assignee
    to furnish information about his nationality, citizenship or
    related status. If a limited partner or assignee fails to
    furnish information about his nationality, citizenship or other
    related status within 30&#160;days after a request for the
    information or our general partner determines after receipt of
    the information that the limited partner or assignee is not an
    eligible citizen, the limited partner or assignee may be treated
    as a non-citizen assignee. In addition to other limitations on
    the rights of an assignee that is not a limited partner, a
    non-citizen assignee does not have the right to direct the
    voting of his units and may not receive distributions in kind
    upon our liquidation. Furthermore, we have the right to redeem
    all of the common units and subordinated units of any holder
    that is not an eligible citizen or fails to furnish the
    requested information. The redemption price will be paid in cash
    or by delivery of a promissory note, as determined by our
    general partner. Please read &#147;The Partnership
    Agreement&#160;&#151; Non-Citizen Assignees; Redemption.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our unitholders may have liability to repay
    distributions.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under certain circumstances, our unitholders may have to repay
    amounts wrongfully returned or distributed to them. Under
    <FONT style="white-space: nowrap">Section&#160;17-607</FONT>
    of the Delaware Act, we may not make a distribution to our
    unitholders if the distribution would cause our liabilities to
    exceed the fair value of our assets. Delaware law provides that,
    for a period of three years from the date of the impermissible
    distribution, limited partners who received the distribution and
    who knew at the time of the distribution that it violated
    Delaware law will be liable to the limited partnership for the
    distribution amount. Purchasers of units who become limited
    partners are liable for the obligations of the transferring
    limited partner to make contributions to the partnership that
    are known to the purchaser of units at the time it became a
    limited partner and for unknown obligations if the liabilities
    could be determined from the partnership agreement. Liabilities
    to partners on account of their partnership interests and
    liabilities that are non-recourse to the partnership are not
    counted for purposes of determining whether a distribution is
    permitted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our general partner may mortgage, pledge or grant a
    security interest in all or substantially all of our assets
    without prior approval of our unitholders.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may mortgage, pledge or grant a security
    interest in all or substantially all of our assets without prior
    approval of our unitholders. If our general partner secures our
    obligations or indebtedness by all or substantially all of our
    assets and if we are unable to satisfy such obligations or repay
    such indebtedness, the lenders could seek to foreclose on our
    assets. The lenders may also sell all or substantially all of
    our assets under such foreclosure or other realization upon
    those encumbrances without prior approval of our unitholders,
    which could adversely affect the price of our common units.
</DIV>

<A name='119'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Risks</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to reading the following risk factors, please read
    &#147;Material Federal Income Tax Consequences&#148; for a more
    complete discussion of the expected material federal income tax
    consequences of owning and disposing of common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    tax treatment depends on our status as a partnership for federal
    income tax purposes. If the IRS were to treat us as a
    corporation for federal income tax purposes, which would subject
    us to entity-level taxation, then our cash available for
    distribution to our unitholders would be substantially
    reduced.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The anticipated after-tax economic benefit of an investment in
    the common units depends largely on our being treated as a
    partnership for federal income tax purposes. We have not
    requested, and do not plan to request, a ruling from the IRS on
    this or any other tax matter affecting us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Despite the fact that we are a limited partnership under
    Delaware law, it is possible in certain circumstances for a
    partnership such as ours to be treated as a corporation for
    federal income tax purposes. Although we do not believe based
    upon our current operations that we are or will be so treated, a
    change in our business or a change in current law could cause us
    to be treated as a corporation for federal income tax purposes
    or otherwise subject us to taxation as an entity.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we were treated as a corporation for federal income tax
    purposes, we would pay federal income tax on our taxable income
    at the corporate tax rate, which is currently a maximum of 35%,
    and would likely pay state and local income tax at varying
    rates. Distributions would generally be taxed again as corporate
    distributions (to the extent of our current and accumulated
    earnings and profits), and no income, gains, losses, deductions,
    or credits would flow through to you. Because a tax would be
    imposed upon us as a corporation, our cash available for
    distribution to you would be substantially reduced. Therefore,
    if we were treated as a corporation for federal income tax
    purposes there would be material reduction in the anticipated
    cash flow and after-tax return to our unitholders, likely
    causing a substantial reduction in the value of our common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement provides that, if a law is enacted or
    existing law is modified or interpreted in a manner that
    subjects us to taxation as a corporation or otherwise subjects
    us to entity-level taxation for federal, state or local income
    tax purposes, the minimum quarterly distribution amount and the
    target distribution amounts may be adjusted to reflect the
    impact of that law on us.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If we
    were subjected to a material amount of additional entity-level
    taxation by individual states, it would reduce our cash
    available for distribution to our unitholders.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Changes in current state law may subject us to additional
    entity-level taxation by individual states. Because of
    widespread state budget deficits and other reasons, several
    states are evaluating ways to subject partnerships to
    entity-level taxation through the imposition of state income,
    franchise and other forms of taxation. Imposition of any such
    taxes may substantially reduce the cash available for
    distribution to you. Our partnership agreement provides that, if
    a law is enacted or existing law is modified or interpreted in a
    manner that subjects us to entity-level taxation, the minimum
    quarterly distribution amount and the target distribution
    amounts may be adjusted to reflect the impact of that law on us.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    tax treatment of publicly traded partnerships or an investment
    in our common units could be subject to potential legislative,
    judicial or administrative changes and differing
    interpretations, possibly on a retroactive basis.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The present federal income tax treatment of publicly traded
    partnerships, including us, or an investment in our common units
    may be modified by administrative, legislative or judicial
    interpretation at any time. Recently, members of the
    U.S.&#160;Congress have considered substantive changes to the
    existing federal income tax laws that affect certain publicly
    traded partnerships, which, if enacted, may or may not be
    applied retroactively. Although we are unable to predict whether
    any of these changes or any other proposals will ultimately be
    enacted, any such changes could negatively impact the value of
    an investment in our common units.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Certain
    federal income tax preferences currently available with respect
    to coal exploration and development may be eliminated in future
    legislation.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Among the changes contained in President Obama&#146;s Budget
    Proposal for Fiscal Year 2011, or the Budget Proposal, is the
    elimination of certain key U.S.&#160;federal income tax
    preferences relating to coal exploration and development. The
    Budget Proposal would (i)&#160;eliminate current deductions and
    the <FONT style="white-space: nowrap">60-month</FONT>
    amortization for exploration and development costs relating to
    coal and other hard mineral fossil fuels, (ii)&#160;repeal the
    percentage depletion allowance with respect to coal properties,
    (iii)&#160;repeal capital gains treatment of coal and lignite
    royalties, and (iv)&#160;exclude from the definition of domestic
    production gross receipts all gross receipts derived from the
    sale, exchange, or other disposition of coal, other hard mineral
    fossil fuels, or primary products thereof. The passage of any
    legislation as a result of the Budget Proposal or any other
    similar changes in U.S.&#160;federal income tax laws could
    eliminate certain tax deductions that are currently available
    with respect to coal exploration and development, and any such
    change could increase the taxable income allocable to our
    unitholders and negatively impact the value of an investment in
    our common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our unitholders will be required to pay taxes on their
    share of our income even if they do not receive any cash
    distributions from us.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because our unitholders will be treated as partners to whom we
    will allocate taxable income which could be different in amount
    than the cash we distribute, our unitholders will be required to
    pay federal income taxes and, in some cases, state and local
    income taxes on their share of our taxable income even if they
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    39
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    receive no cash distributions from us. Our unitholders may not
    receive cash distributions from us equal to their share of our
    taxable income or even equal to the actual tax liability that
    results from that income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>If the IRS contests the federal income tax positions we
    take, the market for our common units may be adversely impacted
    and the cost of any IRS contest will reduce our cash available
    for distribution to our unitholders.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not requested a ruling from the Internal Revenue
    Service, or the IRS, with respect to our treatment as a
    partnership for federal income tax purposes or any other matter
    affecting us. The IRS may adopt positions that differ from the
    conclusions of our counsel expressed in this prospectus or from
    the positions we take. It may be necessary to resort to
    administrative or court proceedings to sustain some or all of
    our counsel&#146;s conclusions or the positions we take and such
    positions may not ultimately be sustained. A court may not agree
    with some or all of our counsel&#146;s conclusions or the
    positions we take. Any contest with the IRS, and the outcome of
    any IRS contest, may have a materially adverse impact on the
    market for our common units and the price at which they trade.
    In addition, our costs of any contest with the IRS will be borne
    indirectly by our unitholders and our general partner because
    the costs will reduce our cash available for distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Tax gain or loss on the disposition of our common units
    could be more or less than expected.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you sell your common units, you will recognize a gain or loss
    for federal income tax purposes equal to the difference between
    the amount realized and your tax basis in those common units.
    Because distributions in excess of your allocable share of our
    net taxable income decrease your tax basis in your common units,
    the amount, if any, of such prior excess distributions with
    respect to the common units you sell will, in effect, become
    taxable income to you if you sell such common units at a price
    greater than your tax basis in those common units, even if the
    price you receive is less than your original cost. Furthermore,
    a substantial portion of the amount realized on any sale of your
    common units, whether or not representing gain, may be taxed as
    ordinary income due to potential recapture items, including
    depreciation recapture. In addition, because the amount realized
    includes a unitholder&#146;s share of our nonrecourse
    liabilities, if you sell your common units, you may incur a tax
    liability in excess of the amount of cash you receive from the
    sale. Please read &#147;Material Federal Income Tax
    Consequences&#160;&#151; Disposition of Common Units&#160;&#151;
    Recognition of Gain or Loss&#148; for a further discussion of
    the foregoing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Tax-exempt entities and
    <FONT style="white-space: nowrap">non-U.S.</FONT>
    persons face unique tax issues from owning our common units that
    may result in adverse tax consequences to them.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Investment in common units by tax-exempt entities, such as
    employee benefit plans and individual retirement accounts (known
    as IRAs), and
    <FONT style="white-space: nowrap">non-U.S.&#160;persons</FONT>
    raises issues unique to them. For example, virtually all of our
    income allocated to organizations that are exempt from federal
    income tax, including IRAs and other retirement plans, will be
    unrelated business taxable income and will be taxable to them.
    Distributions to
    <FONT style="white-space: nowrap">non-U.S.&#160;persons</FONT>
    will be reduced by withholding taxes at the highest applicable
    effective tax rate, and
    <FONT style="white-space: nowrap">non-U.S.&#160;persons</FONT>
    will be required to file U.S.&#160;federal income tax returns
    and pay tax on their share of our taxable income. If you are a
    tax-exempt entity or a
    <FONT style="white-space: nowrap">non-U.S.&#160;person,</FONT>
    you should consult a tax advisor before investing in our common
    units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We will treat each purchaser of common units as having the
    same tax benefits without regard to the actual common units
    purchased. The IRS may challenge this treatment, which could
    adversely affect the value of the common units.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because we cannot match transferors and transferees of common
    units and because of other reasons, we will adopt depreciation
    and amortization positions that may not conform to all aspects
    of existing Treasury Regulations. A successful IRS challenge to
    those positions could adversely affect the amount of tax
    benefits available to you. Our counsel is unable to opine as to
    the validity of such filing positions. It also could affect the
    timing of these tax benefits or the amount of gain from your
    sale of common units and could have a negative impact on the
    value of our common units or result in audit adjustments to your
    tax returns. Please read &#147;Material Federal Income Tax
    Consequences&#160;&#151; Tax Consequences of Unit
    Ownership&#160;&#151; Section&#160;754 Election&#148; for a
    further discussion of the effect of the depreciation and
    amortization positions we will adopt.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    40
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We prorate our items of income, gain, loss and deduction
    between transferors and transferees of our units each month
    based upon the ownership of our units on the first day of each
    month, instead of on the basis of the date a particular unit is
    transferred. The IRS may challenge this treatment, which could
    change the allocation of items of income, gain, loss and
    deduction among our unitholders.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will prorate our items of income, gain, loss and deduction
    between transferors and transferees of our units each month
    based upon the ownership of our units on the first day of each
    month, instead of on the basis of the date a particular unit is
    transferred. The use of this proration method may not be
    permitted under existing Treasury Regulations, and, accordingly,
    our counsel is unable to opine as to the validity of this
    method. If the IRS were to challenge this method or new Treasury
    regulations were issued, we may be required to change the
    allocation of items of income, gain, loss and deduction among
    our unitholders. Please read &#147;Material Federal Income Tax
    Consequences&#160;&#151; Disposition of Common Units&#160;&#151;
    Allocations Between Transferors and Transferees.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>A unitholder whose common units are loaned to a
    &#147;short seller&#148; to cover a short sale of common units
    may be considered as having disposed of those common units. If
    so, he would no longer be treated for federal income tax
    purposes as a partner with respect to those common units during
    the period of the loan and may recognize gain or loss from the
    disposition.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because a unitholder whose common units are loaned to a
    &#147;short seller&#148; to cover a short sale of common units
    may be considered as having disposed of the loaned common units,
    he may no longer be treated for federal income tax purposes as a
    partner with respect to those common units during the period of
    the loan to the short seller and the unitholder may recognize
    gain or loss from such disposition. Moreover, during the period
    of the loan to the short seller, any of our income, gain, loss
    or deduction with respect to those common units may not be
    reportable by the unitholder and any cash distributions received
    by the unitholder as to those common units could be fully
    taxable as ordinary income. Our counsel has not rendered an
    opinion regarding the treatment of a unitholder where common
    units are loaned to a short seller to cover a short sale of
    common units; therefore, our unitholders desiring to assure
    their status as partners and avoid the risk of gain recognition
    from a loan to a short seller are urged to consult a tax advisor
    to discuss whether it is advisable to modify any applicable
    brokerage account agreements to prohibit their brokers from
    loaning their common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>We will adopt certain valuation methodologies and monthly
    conventions that may result in a shift of income, gain, loss and
    deduction between our general partner and our unitholders. The
    IRS may challenge this treatment, which could adversely affect
    the value of the common units.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When we issue additional units or engage in certain other
    transactions, we will determine the fair market value of our
    assets and allocate any unrealized gain or loss attributable to
    our assets to the capital accounts of our unitholders and our
    general partner. Our methodology may be viewed as understating
    the value of our assets. In that case, there may be a shift of
    income, gain, loss and deduction between certain unitholders and
    our general partner, which may be unfavorable to such
    unitholders. Moreover, under our valuation methods, subsequent
    purchasers of common units may have a greater portion of their
    Internal Revenue Code Section&#160;743(b) adjustment allocated
    to our tangible assets and a lesser portion allocated to our
    intangible assets. The IRS may challenge our valuation methods,
    or our allocation of the Section&#160;743(b) adjustment
    attributable to our tangible and intangible assets, and
    allocations of taxable income, gain, loss and deduction between
    our general partner and certain of our unitholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A successful IRS challenge to these methods or allocations could
    adversely affect the amount of taxable income or loss being
    allocated to our unitholders. It also could affect the amount of
    taxable gain from our unitholders&#146; sale of common units and
    could have a negative impact on the value of the common units or
    result in audit adjustments to our unitholders&#146; tax returns
    without the benefit of additional deductions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>The sale or exchange of 50% or more of our capital and
    profits interests during any
    <FONT style="white-space: nowrap">twelve-month</FONT>
    period will result in the termination of our partnership for
    federal income tax purposes.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will be considered to have technically terminated our
    partnership for federal income tax purposes if there is a sale
    or exchange of 50% or more of the total interests in our capital
    and profits within a twelve-month period. For purposes of
    determining whether the 50% threshold has been met, multiple
    sales of the
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    41
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    same interest will be counted only once. Our technical
    termination would, among other things, result in the closing of
    our taxable year for all unitholders, which would result in us
    filing two tax returns (and our unitholders could receive two
    Schedules K-1 if relief was not available, as described below)
    for one fiscal year and could result in a deferral of
    depreciation deductions allowable in computing our taxable
    income. In the case of a unitholder reporting on a taxable year
    other than a fiscal year ending December&#160;31, the closing of
    our taxable year may also result in more than twelve months of
    our taxable income or loss being includable in his taxable
    income for the year of termination. Our termination currently
    would not affect our classification as a partnership for federal
    income tax purposes, but instead we would be treated as a new
    partnership for tax purposes. If treated as a new partnership,
    we must make new tax elections and could be subject to penalties
    if we are unable to determine that a termination occurred. The
    IRS has recently announced a publicly traded partnership
    technical termination relief program whereby, if a publicly
    traded partnership that technically terminated requests publicly
    traded partnership technical termination relief and such relief
    is granted by the IRS, among other things, the partnership will
    only have to provide one
    <FONT style="white-space: nowrap">Schedule&#160;K-1</FONT>
    to unitholders for the year notwithstanding two partnership tax
    years. Please read &#147;Material Federal Income Tax
    Consequences&#160;&#151; Disposition of Common Units&#160;&#151;
    Constructive Termination&#148; for a discussion of the
    consequences of our termination for federal income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>As a result of investing in our common units, you may
    become subject to state and local taxes and return filing
    requirements in jurisdictions where we operate or own or acquire
    properties.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to federal income taxes, our unitholders will likely
    be subject to other taxes, including state and local taxes,
    unincorporated business taxes and estate, inheritance or
    intangible taxes that are imposed by the various jurisdictions
    in which we conduct business or control property now or in the
    future, even if they do not live in any of those jurisdictions.
    Our unitholders will likely be required to file state and local
    income tax returns and pay state and local income taxes in some
    or all of these various jurisdictions. Further, our unitholders
    may be subject to penalties for failure to comply with those
    requirements. We initially expect to conduct business in
    Indiana, Kentucky, Michigan, Ohio and Pennsylvania. Each of
    these states currently imposes a personal income tax on
    individuals. As we make acquisitions or expand our business, we
    may control assets or conduct business in additional states that
    impose a personal income tax. It is your responsibility to file
    all U.S.&#160;federal, state and local tax returns. Our counsel
    has not rendered an opinion on the state or local tax
    consequences of an investment in our common units.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    42
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='120'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect to receive net proceeds of approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million, after deducting
    underwriting discounts and commissions but before paying
    offering expenses, from the issuance and sale of common units
    offered by this prospectus. We will use the net proceeds from
    this offering to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    repay in full the outstanding balance under our existing credit
    facility, which was approximately $93.7&#160;million at
    March&#160;19, 2010;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    distribute approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million to C&#038;T Coal in
    respect of its limited partner interest in us;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    distribute approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million to certain
    participants in our LTIP in respect of their limited partner
    interests in us;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    pay offering expenses of approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will retain the remaining net proceeds from this offering to
    replenish approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million of our working
    capital.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Immediately following the repayment of the outstanding balance
    under our existing credit facility with the net proceeds of this
    offering, we will enter into a new credit facility and borrow
    approximately $&#160;&#160;&#160;&#160;&#160; under that credit
    facility. We will use the proceeds from that borrowing to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    distribute approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million to AIM Oxford in
    respect of its limited partner interest in us;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    pay fees and expenses relating to our new credit facility of
    approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;million.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A portion of the amounts to be repaid under our existing credit
    facility with the net proceeds of this offering were used to
    finance our acquisition of the surface mining operations of
    Phoenix Coal in September 2009. As of March&#160;19, 2010, we
    had approximately $93.7&#160;million of indebtedness outstanding
    under our existing credit facility. This indebtedness had a
    weighted average interest rate&#160;of 6.55% as of
    March&#160;19, 2010. Our existing credit facility matures in
    August 2012.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our estimates assume an initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per common unit (based upon the
    mid-point of the price range set forth on the cover page of this
    prospectus) and no exercise of the underwriters&#146; option to
    purchase additional common units. An increase or decrease in the
    initial public offering price of $1.00 per common unit would
    cause the net proceeds from the offering, after deducting
    underwriting discounts, to increase or decrease by
    $&#160;&#160;&#160;&#160;&#160;&#160;million. If the proceeds
    increase due to a higher initial public offering price, we will
    use the additional proceeds for general partnership purposes. If
    the proceeds decrease due to a lower initial public offering
    price, the amount that we have available for general partnership
    purposes will decrease by a corresponding amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The proceeds from any exercise of the underwriters&#146; option
    to purchase additional common units will be used to redeem from
    C&#038;T Coal and AIM Oxford that number of common units that
    corresponds to the number of common units issued upon such
    exercise, at a price per common unit equal to the proceeds per
    common unit before expenses but after underwriting discounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Affiliates of Citigroup Global Markets Inc. are lenders under
    our existing credit facility and will receive their
    proportionate share of the repayment of the outstanding balance
    under our existing credit facility by us in connection with this
    offering.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    43
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAPITALIZATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our historical capitalization, as of December&#160;31,
    2009;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our pro forma, as adjusted capitalization as of
    December&#160;31, 2009, giving effect to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our entry into our new credit facility and the repayment of all
    outstanding indebtedness under our existing credit facility;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our receipt of net proceeds of
    $&#160;&#160;&#160;&#160;&#160;&#160;million from the issuance
    and sale
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units to the public at an assumed initial offering price of
    $&#160;&#160;&#160;&#160;&#160; per unit;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the application of the net proceeds from this offering of
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;million
    (based on the mid-point of the price range set forth on the
    cover page of this prospectus) in the manner described in
    &#147;Use of Proceeds&#148;;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the other transactions described in &#147;Summary&#160;&#151;
    The Transactions.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We derived this table from and it should be read in conjunction
    with and is qualified in its entirety by reference to the
    historical and pro forma consolidated financial statements and
    the accompanying notes included elsewhere in this prospectus.
    You should also read this table in conjunction with
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Actual</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As Adjusted</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Long-term debt (including current maturities):</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Existing credit
    facility<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,729
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    New credit
    facility<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,982
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total long-term debt (including current maturities)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,711
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Partners&#146; capital:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Limited partners:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Common unitholders&#160;&#151; public
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Common unitholders&#160;&#151; LTIP
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Common unitholders&#160;&#151; sponsors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Subordinated unitholders&#160;&#151; sponsors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    General partner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,085
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total Oxford Resource Partners, LP partners&#146; capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total partners&#146; capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total capitalization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    152,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">As of March&#160;19, 2010, we had
    $93.7&#160;million of borrowings under our existing credit
    facility. This amount does not include $8.8&#160;million of
    letters of credit that were outstanding under our existing
    credit facility as of March&#160;19, 2010.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Does not include
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;million
    in outstanding letters of credit that will be issued under our
    new credit facility.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    44
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='122'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DILUTION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dilution is the amount by which the offering price will exceed
    the net tangible book value per unit after the offering.
    Assuming an initial public offering price of
    $&#160;&#160;&#160;&#160;&#160; per common unit, on a pro forma
    basis as of December&#160;31, 2009, after giving effect to our
    entry into our new credit facility and repayment of all
    outstanding indebtedness under our existing credit facility, the
    issuance and sale
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units, the other transactions described in
    &#147;Summary&#160;&#151; The Transactions&#148; and the
    application of the net proceeds from this offering in the manner
    described in &#147;Use of Proceeds,&#148; our net tangible book
    value was approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million, or
    $&#160;&#160;&#160;&#160;&#160; per common unit. The pro forma
    tangible net book value excludes
    $&#160;&#160;&#160;&#160;&#160;&#160;million of deferred
    financing costs. Purchasers of common units in this offering
    will experience substantial and immediate dilution in net
    tangible book value per common unit for financial accounting
    purposes, as illustrated in the following table.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assumed initial public offering price per common unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $&#160;&#160;&#160;&#160;&#160;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net tangible book value per common unit before the
    offering<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Increase in net tangible book value per common unit attributable
    to purchasers in the offering
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less: Pro forma net tangible book value per common unit after
    the
    offering<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Immediate dilution in net tangible book value per common unit to
    purchasers in the
    offering<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Determined by dividing the net tangible book value of the
    contributed assets and liabilities by the number of units
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units and the 2.0% general partner interest represented
    by&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    general partner units) held by our general partner and its
    affiliates and the participants under our LTIP.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Determined by dividing our pro forma net tangible book value,
    after giving effect to the use of the net proceeds from this
    offering, by the total number of units
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units and the 2.0% general partner interest represented
    by&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;general
    partner units) to be outstanding after this offering.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    If the initial public offering price were to increase or
    decrease by $1.00 per common unit, immediate dilution in net
    tangible book value per common unit would increase or decrease
    by $1.00.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the number of units that we will
    issue and the total consideration contributed to us by our
    general partner and its affiliates and the participants under
    our LTIP in respect of their units and by the purchasers of
    common units in this offering upon consummation of the
    transactions contemplated by this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units Acquired</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total Consideration</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percent</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percent</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
    <B>($ in millions)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General Partner and its
    affiliates<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    New Investors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Upon the consummation of the transactions contemplated by this
    prospectus, our general partner and its affiliates, and the
    participants under our LTIP, will
    own&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common
    units,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units and a 2.0% general partner interest represented
    by&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;general
    partner units.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    45
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='123'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CASH
    DISTRIBUTION POLICY AND RESTRICTIONS ON DISTRIBUTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>You should read the following discussion of our cash
    distribution policy in conjunction with the specific assumptions
    included in this section. In addition, you should read
    &#147;Forward-Looking Statements&#148; and &#147;Risk
    Factors&#148; for information regarding statements that do not
    relate strictly to historical or current facts and regarding
    certain risks inherent in our business.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>For additional information regarding our historical results
    of operations, you should refer to our historical audited
    consolidated financial statements as of and for the years ended
    December&#160;31, 2007, 2008 and 2009 included elsewhere in this
    prospectus.</I>
</DIV>

<A name='124'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Rationale
    for Our Cash Distribution Policy</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our cash distribution policy is consistent with the terms of our
    partnership agreement, which requires that we distribute all of
    our available cash quarterly. Under our partnership agreement,
    available cash is generally defined to mean, for each quarter,
    cash generated from our business in excess of the amount of cash
    reserves established by our general partner to provide for the
    conduct of our business, to comply with applicable law, any of
    our debt instruments or other agreements or to provide for
    future distributions to our unitholders for any one or more of
    the next four quarters. Our cash distribution policy reflects a
    basic judgment that our unitholders will be better served by
    distributing our available cash rather than retaining it,
    because, among other reasons, we believe we will generally
    finance any expansion capital expenditures from external
    financing sources. Because we are not subject to an entity-level
    federal income tax, we expect to have more cash to distribute
    than would be the case if we were subject to federal income tax.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Limitations
    on Cash Distributions and Our Ability to Change Our Cash
    Distribution Policy</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There is no guarantee that we will distribute quarterly cash
    distributions to our unitholders. Our cash distribution policy
    is subject to certain restrictions and may be changed at any
    time. The reasons for such uncertainties in our stated cash
    distribution policy include the following factors:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our cash distribution policy will be subject to restrictions on
    cash distributions under our new credit facility. Specifically,
    we expect our new credit facility to contain financial tests and
    covenants that we must satisfy before quarterly cash
    distributions can be paid. These financial tests and covenants
    are described in &#147;Management&#146;s Discussion and Analysis
    of Financial Condition and Results of Operations&#160;&#151;
    Liquidity and Capital Resources&#160;&#151; Credit
    Facility.&#148; Should we be unable to satisfy these
    restrictions included in our new credit facility or if we are
    otherwise in default under our new credit facility, we would be
    prohibited from making cash distributions notwithstanding our
    cash distribution policy.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our general partner will have the authority to establish cash
    reserves for the prudent conduct of our business and for future
    cash distributions to our unitholders, and the establishment of
    or increase in those reserves could result in a reduction in
    cash distributions from levels we currently anticipate pursuant
    to our stated cash distribution policy.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    While our partnership agreement requires us to distribute all of
    our available cash, our partnership agreement, including the
    provisions requiring us to make cash distributions contained
    therein, may be amended. Our partnership agreement generally may
    not be amended during the subordination period without the
    approval of our public common unitholders other than in certain
    limited circumstances where no unitholder approval is required.
    However, after the subordination period has ended our
    partnership agreement may be amended with the consent of our
    general partner and the approval of a majority of the
    outstanding common units (including common units held by
    C&#038;T Coal and AIM Oxford). At the closing of this offering,
    C&#038;T Coal and AIM Oxford will own our general partner,
    approximately&#160;&#160;&#160;&#160;&#160;% of our outstanding
    common units and all of our outstanding subordinated units.
    Please read &#147;The Partnership Agreement&#160;&#151;
    Amendment of Our Partnership Agreement.&#148;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    46
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Even if our cash distribution policy is not modified or revoked,
    the amount of distributions we pay under our cash distribution
    policy and the decision to make any distribution is determined
    by our general partner, taking into consideration the terms of
    our partnership agreement.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Under
    <FONT style="white-space: nowrap">Section&#160;17-607</FONT>
    of the Delaware Act, we may not make a distribution if the
    distribution would cause our liabilities to exceed the fair
    value of our assets.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    We may lack sufficient cash to pay distributions to our
    unitholders due to reduced revenues from sales of our products
    and services or increases in our operating costs, SG&#038;A
    expenses, principal and interest payments on our outstanding
    debt and working capital requirements.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    If we make distributions out of capital surplus, as opposed to
    operating surplus, such distributions will constitute a return
    of capital and will result in a reduction in the minimum
    quarterly distribution and the target distribution levels.
    Please read &#147;How We Make Cash Distributions&#160;&#151;
    Distributions from Capital Surplus.&#148; We do not anticipate
    that we will make any distributions from capital surplus.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our ability to make distributions to our unitholders depends on
    the performance of our subsidiaries and their ability to
    distribute cash to us, including cash distributions from
    Harrison Resources, which requires the approval of the
    noncontrolling interest holder. The ability of our subsidiaries
    to make distributions to us may be restricted by, among other
    things, the provisions of existing and future indebtedness,
    applicable state partnership and limited liability company laws
    and other laws and regulations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While we believe, based on our financial forecast and related
    assumptions, that we will have sufficient cash to enable us to
    pay the full minimum quarterly distribution on all of our common
    units and subordinated units for the twelve months ending
    June&#160;30, 2011, our cash available for distribution
    generated during the year ended December&#160;31, 2009 would
    have been sufficient to allow us to
    pay&#160;&#160;&#160;&#160;&#160;%
    and&#160;&#160;&#160;&#160;&#160;% of the minimum quarterly
    distribution ($&#160;&#160;&#160;&#160;&#160; per unit per
    quarter, or $&#160;&#160;&#160;&#160;&#160; on an annualized
    basis) on our common units and subordinated units, respectively.
    This represents&#160;&#160;&#160;&#160;&#160;% of the total
    distributions payable to all of our unitholders and our general
    partner.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    Ability to Grow is Dependent on Our Ability to Access External
    Expansion Capital</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will distribute all of our available cash to our unitholders
    on a quarterly basis. As a result, we expect that we will rely
    primarily upon external financing sources, including commercial
    bank borrowings and the issuance of debt and equity securities,
    to fund any future expansion capital expenditures. To the extent
    we are unable to finance growth externally, our cash
    distribution policy will significantly impair our ability to
    grow our asset base. In addition, because we will distribute all
    of our available cash, our growth may not be as fast as
    businesses that reinvest all of their available cash to expand
    ongoing operations. To the extent we issue additional units, the
    payment of distributions on those additional units may increase
    the risk that we will be unable to maintain or increase our per
    unit distribution level, which in turn may impact the available
    cash that we have to distribute on each unit. There are no
    limitations in our partnership agreement, and we do not
    anticipate there being any limitations in our new credit
    facility, on our ability to issue additional units, including
    units ranking senior to the common units. The incurrence of
    additional commercial borrowings or other debt to finance our
    growth strategy would result in increased interest expense,
    which in turn may impact the available cash that we have to
    distribute to our unitholders.
</DIV>

<A name='125'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Minimum
    Quarterly Distribution Rate</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the consummation of this offering, the board of directors
    of our general partner intends to establish a minimum quarterly
    distribution of $&#160;&#160;&#160;&#160;&#160; per unit for
    each complete quarter, or $&#160;&#160;&#160;&#160;&#160; per
    unit on an annualized basis, to be paid within 45&#160;days
    after the end of each quarter. We will adjust our first
    distribution for the period from the closing of this offering
    through&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010 based on the actual length of the period. Our ability to
    make cash distributions at the established minimum quarterly
    distribution rate pursuant to our cash distribution policy will
    be subject to the factors described above under
    &#147;&#151;&#160;General&#160;&#151; Limitations on Cash
    Distributions and Our Ability to Change Our Cash Distribution
    Policy.&#148; The amount of available cash
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    47
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    needed to pay the minimum quarterly distribution on all of the
    common units, subordinated units and general partner units to be
    outstanding immediately after this offering for one quarter and
    for four quarters is summarized in the table below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="56%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number of Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>One Quarter</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Four Quarters</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Subordinated units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General partner units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the date of this offering, our general partner will be
    entitled to 2.0% of all distributions that we make prior to our
    liquidation. Our general partner&#146;s initial 2.0% interest in
    these distributions may be reduced if we issue additional units
    in the future and our general partner does not contribute a
    proportionate amount of capital to us to maintain its initial
    2.0% general partner interest. Our general partner will also
    hold the incentive distribution rights, which entitle the holder
    to increasing percentages, up to a maximum of 48%, of the cash
    we distribute in excess of $&#160;&#160;&#160;&#160;&#160; per
    unit per quarter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the subordination period, before we make any quarterly
    distributions to our subordinated unitholders, our common
    unitholders are entitled to receive payment of the full minimum
    quarterly distribution plus any arrearages in distributions of
    the minimum quarterly distribution from prior quarters. Please
    read &#147;How We Make Cash Distributions&#160;&#151;
    Subordination Period.&#148; We cannot guarantee, however, that
    we will pay the minimum quarterly distribution on the common
    units in any quarter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not have a legal obligation to pay distributions at our
    minimum quarterly distribution rate or at any other rate except
    as provided in our partnership agreement. Our cash distribution
    policy is consistent with the terms of our partnership
    agreement, which requires that we distribute all of our
    available cash quarterly. Under our partnership agreement,
    available cash is generally defined to mean, for each quarter,
    cash generated from our business in excess of the amount of cash
    reserves established by our general partner to provide for the
    conduct of our business, to comply with applicable law, any of
    our debt instruments or other agreements or to provide for
    future distributions to our unitholders for any one or more of
    the next four quarters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although holders of our common units may pursue judicial action
    to enforce provisions of our partnership agreement, including
    those related to requirements to make cash distributions as
    described above, our partnership agreement provides that any
    determination made by our general partner in its capacity as our
    general partner must be made in good faith and that any such
    determination will not be subject to any other standard imposed
    by the Delaware Act or any other law, rule or regulation or at
    equity. Our partnership agreement provides that, in order for a
    determination by our general partner to be made in &#147;good
    faith,&#148; our general partner must believe that the
    determination is in our best interest. Please read
    &#147;Conflicts of Interest and Fiduciary Duties.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our cash distribution policy, as expressed in our partnership
    agreement, may not be modified or repealed without amending our
    partnership agreement; however, the actual amount of our cash
    distributions for any quarter is subject to fluctuations based
    on the amount of cash we generate from our business and the
    amount of reserves our general partner establishes in accordance
    with our partnership agreement as described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay our distributions on or about the 15th&#160;day of
    each of February, May, August and November to holders of record
    on or about the 1st&#160;day of each such month. If the
    distribution date does not fall on a business day, we will make
    the distribution on the first business day immediately preceding
    the indicated distribution date. We will adjust the quarterly
    distribution for the period from the closing of this offering
    through&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010 based on the actual length of the period.
</DIV>

<A name='126'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Historical
    and Forecasted Results of Operations and Cash Available for
    Distribution</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In this section, we present in detail the basis for our belief
    that we will be able to pay the minimum quarterly distribution
    on all of our common units and subordinated units and make the
    related distribution on our general partner&#146;s 2.0% general
    partner interest for the twelve months ending June&#160;30,
    2011. We present a
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    48
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    table below, consisting of historical and forecasted results of
    operations and cash available for distribution for the year
    ended December&#160;31, 2009 and the twelve months ending
    June&#160;30, 2011, respectively. In the table, we show our
    historical results of operations and the amount of cash
    available for distribution we would have had for the year ended
    December&#160;31, 2009 based on our historical consolidated
    statement of operations included elsewhere in this prospectus
    and our forecasted results of operations and the forecasted
    amount of cash available for distribution for the twelve months
    ending June&#160;30, 2011 and the significant assumptions upon
    which this forecast is based.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our historical consolidated financial statements and the notes
    to those statements included elsewhere in this prospectus should
    be read together with &#147;Selected Historical and Pro Forma
    Consolidated Financial and Operating Data&#148; and
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#148; included elsewhere in
    this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historical cash available for distribution generated during the
    year ended December&#160;31, 2009 would have been approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million. This amount would
    have been sufficient to pay&#160;&#160;&#160;&#160;&#160;%
    and&#160;&#160;&#160;&#160;&#160;% of the minimum quarterly
    distribution ($&#160;&#160;&#160;&#160;&#160; per quarter, or
    $&#160;&#160;&#160;&#160;&#160; on an annualized basis) on our
    common units and subordinated units, respectively. This
    represents&#160;&#160;&#160;&#160;&#160;% of the total
    distributions payable to all of our unitholders and our general
    partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table also sets forth our calculation of
    forecasted cash available for distribution to our unitholders
    and our general partner for the twelve months ending
    June&#160;30, 2011. We forecast that our cash available for
    distribution generated during the twelve months ending
    June&#160;30, 2011 will be approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million. This amount would
    be sufficient to pay the full minimum quarterly distribution of
    $&#160;&#160;&#160;&#160;&#160; per unit on all of our common
    units and subordinated units and the related distribution on our
    general partner&#146;s 2.0% general partner interest for each
    quarter in the twelve months ending June&#160;30, 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are providing the financial forecast to supplement our
    historical consolidated financial statements in support of our
    belief that we will have sufficient cash available to allow us
    to pay cash distributions on all of our outstanding common units
    and subordinated units and the related distributions on our
    general partner&#146;s 2.0% general partner interest for the
    twelve months ending June&#160;30, 2011 at the minimum quarterly
    distribution rate. Please read &#147;&#151;&#160;Significant
    Forecast Assumptions&#148; for further information as to the
    assumptions we have made for the financial forecast. Please read
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#160;&#151; Critical
    Accounting Policies and Estimates&#148; for information as to
    the accounting policies we have followed for the financial
    forecast.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our forecast reflects our judgment as of the date of this
    prospectus of conditions we expect to exist and the course of
    action we expect to take during the twelve months ending
    June&#160;30, 2011. We believe that our actual results of
    operations will approximate those reflected in our forecast, but
    we can give no assurance that our forecasted results will be
    achieved. If our estimates are not achieved, we may not be able
    to pay quarterly distributions on our common units and
    subordinated units at the minimum quarterly distribution rate of
    $&#160;&#160;&#160;&#160;&#160; per unit (or
    $&#160;&#160;&#160;&#160;&#160; per unit on an annualized basis)
    or any other rate. The assumptions and estimates underlying the
    forecast are inherently uncertain and, though we consider them
    reasonable as of the date of this prospectus, are subject to a
    wide variety of significant business, economic and competitive
    risks and uncertainties that could cause actual results to
    differ materially from those contained in the forecast,
    including, among others, risks and uncertainties contained in
    &#147;Risk Factors.&#148; Accordingly, there can be no assurance
    that the forecast is indicative of our future performance or
    that actual results will not differ materially from those
    presented in the forecast. Inclusion of the forecast in this
    prospectus should not be regarded as a representation by any
    person that the results contained in the forecast will be
    achieved.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>We do not, as a matter of course, make public forecasts as to
    future sales, earnings or other results. However, we have
    prepared the forecast set forth below to present the estimated
    cash available for distribution to our unitholders and general
    partner during the forecasted period. The accompanying forecast
    was not prepared with a view toward complying with the
    guidelines established by the American Institute of Certified
    Public Accountants with respect to prospective financial
    information, but, in our view, was prepared on a reasonable
    basis, reflects the best currently available estimates and
    judgments, and presents, to the best of management&#146;s
    knowledge and belief, the expected course of </B>
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    49
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>action and our expected future financial performance.
    However, this information is not fact and should not be relied
    upon as being necessarily indicative of future results, and
    readers of this prospectus are cautioned not to place undue
    reliance on the forecast.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Neither our independent auditors, nor any other independent
    accountants, have compiled, examined or performed any procedures
    with respect to the forecast contained herein, nor have they
    expressed any opinion or any other form of assurance on such
    information or its achievability, and assume no responsibility
    for, and disclaim any association with, the forecast. We do not
    intend to update or otherwise revise the forecast to reflect
    circumstances existing since its preparation or to reflect the
    occurrence of unanticipated events, even if any or all of the
    underlying assumptions are shown to be in error. Furthermore, we
    do not intend to update or revise the forecast to reflect
    changes in general economic or industry conditions.</B>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    50
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Oxford
    Resource Partners, LP<BR>
    Cash Available for Distribution</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Historical</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Forecasted<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Twelve Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ending June&#160;30, 2011</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>(in thousands, except per unit and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>per ton amounts)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Operating data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Coal produced in tons
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,079
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Coal purchased in tons
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    730
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Coal available for sale in tons
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,376
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,809
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Coal sold in tons
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,789
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Increase in coal inventory in tons
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Coal sales in tons&#160;&#151;
    sold/committed<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,121
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Coal sales in tons&#160;&#151; uncommitted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/a
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    668
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Average sales price per ton&#160;&#151;
    sold/committed<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Average sales price per ton&#160;&#151; uncommitted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/a
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Selected financial data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Coal sales revenue&#160;&#151;
    sold/committed<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    254,171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    307,638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Coal sales revenue&#160;&#151; uncommitted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/a
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,934
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Transportation revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,894
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Royalty and non-coal
    revenue<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    293,844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    388,944
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Cost of coal sales (excluding DD&#038;A, shown separately)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    226,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Cost of purchased coal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,487
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,379
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Cost of transportation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,894
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Depreciation, depletion and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,365
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Selling, general and administrative
    expenses<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,242
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Total costs and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    346,723
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Income from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,484
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,093
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Gain from purchase of
    business<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,143
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Less: income attributable to noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,895
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,531
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income attributable to Oxford Resource Partners, LP
    unitholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,612
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Plus:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Depreciation, depletion and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,365
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,484
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,093
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Non-cash equity compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Less:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Interest Income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Gain from purchase of
    business<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Amortization of below-market coal sales contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Adjusted
    EBITDA<SUP style="font-size: 85%; vertical-align: top">(6)</SUP></B>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    70,356
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Less:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Cash interest expense, net of interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,970
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Maintenance capital
    expenditures<SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,269
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Cash available for distribution</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,368
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31,866
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Implied cash distributions at the minimum quarterly
    distribution rate:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Annualized minimum quarterly distribution per unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Distributions to public common unitholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Distributions to participants in LTIP
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Distributions to C&#038;T Coal and AIM Oxford&#160;&#151; common
    units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Distributions to C&#038;T Coal and AIM Oxford&#160;&#151;
    subordinated units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    Distributions to general partner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 27pt">
    <B>Total distributions to unitholders and general
    partner<SUP style="font-size: 85%; vertical-align: top">(8)</SUP></B>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Excess (shortfall)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">The forecasted column is based on
    the assumptions set forth in &#147;&#151;&#160;Significant
    Forecast Assumptions&#148; below.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    51
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Represents coal sold for 2009 on a
    historical basis and coal committed for sale for the twelve
    months ending June&#160;30, 2011. The forecast period amount
    includes 0.2&#160;million tons that are subject to a price
    re-opener under a long-term coal sales contract.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(3)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Consists of royalty payments we
    receive on our underground coal reserves as well as limestone
    sales, barge loading fees and other revenue.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(4)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Historical SG&#038;A expenses for
    the year ended December&#160;31, 2009 include one-time expenses
    of $1.6 million associated with the Phoenix Coal acquisition and
    $1.0 million of legal fees incurred in renegotiating our
    existing credit facility, but do not include incremental
    SG&#038;A expenses of approximately $3.0&#160;million that we
    expect to incur as a result of being a publicly traded
    partnership. However, forecasted SG&#038;A expenses for the
    twelve months ended June&#160;30, 2011 include such incremental
    SG&#038;A expenses.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(5)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">On September&#160;30, 2009, we
    acquired all of the active surfacing mining operations of
    Phoenix Coal. The purchase price of this acquisition was less
    than the fair value of the net assets and liabilities we
    acquired. We recorded this difference as a gain of
    $3.8&#160;million for the year ending December&#160;31, 2009.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(6)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">This table presents a
    reconciliation of Adjusted EBITDA to net income (loss)
    attributable to our unitholders for each of the periods
    indicated. Adjusted EBITDA is a non-GAAP financial measure,
    which we use in our business as it is an important supplemental
    measure of our performance. Adjusted EBITDA represents net
    income (loss) attributable to our unitholders before interest,
    taxes, depreciation, depletion and amortization, gain from
    purchase of a business, amortization of below-market coal sales
    contracts and non-cash equity compensation expense. This measure
    is not calculated or presented in accordance with GAAP. We
    explain this measure below and reconcile it to its most directly
    comparable financial measures calculated and presented in
    accordance with GAAP.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Adjusted EBITDA is used as a
    supplemental financial measure by management and by external
    users of our financial statements, such as investors and
    lenders, to assess:
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our financial performance without regard to financing methods,
    capital structure or income taxes;
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our ability to generate cash sufficient to pay interest on our
    indebtedness and to make distributions to our unitholders and
    our general partner;
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our compliance with certain financial covenants applicable to
    our credit facility;&#160;and
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our ability to fund capital expenditure projects from operating
    cash flows.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Adjusted EBITDA should not be
    considered an alternative to net income (loss) attributable to
    our unitholders, income from operations, cash flows from
    operating activities or any other measure of performance
    presented in accordance with GAAP. Adjusted EBITDA excludes
    some, but not all, items that affect net income (loss)
    attributable to our unitholders, income from operations and cash
    flows, and these measures may vary among other companies.
    Therefore, Adjusted EBITDA as presented below may not be
    comparable to similarly titled measures of other companies.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(7)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Historically we have not made a
    distinction between maintenance capital expenditures and other
    capital expenditures. For purposes of this presentation,
    however, we have evaluated our 2009 capital expenditures to
    determine which of them would have been classified as
    maintenance capital expenditures in accordance with our
    partnership agreement at the time they were made. Based on this
    evaluation, we estimate that our maintenance capital
    expenditures for the year ended December&#160;31, 2009 would
    have been $27.5&#160;million. The amount of our actual
    maintenance capital expenditures may differ substantially from
    period to period, which could cause similar fluctuations in the
    amounts of operating surplus, adjusted operating surplus and
    cash available for distribution to our unitholders, if we
    subtracted actual maintenance capital expenditures from
    operating surplus. To eliminate these fluctuations, our
    partnership agreement will require that an estimate of the
    maintenance capital expenditures necessary to maintain our asset
    base be subtracted from operating surplus each quarter as
    opposed to amounts actually spent on maintenance capital
    expenditures. The $32.3&#160;million of maintenance capital
    expenditures for the forecasted twelve months ending
    June&#160;30, 2011 represents estimated maintenance capital
    expenditures as defined in our partnership agreement. The amount
    of estimated maintenance capital expenditures deducted from
    operating surplus is subject to review and change by the board
    of directors of our general partner at least once a year,
    provided that any change must be approved by the Conflicts
    Committee. We expect our actual maintenance capital expenditures
    during the forecast period to be consistent with our estimated
    maintenance capital expenditures for that period. We have not
    included any expansion capital expenditures in the forecast
    period. To the extent we incur such expenditures during the
    forecast period, we expect to fund those with borrowings under
    our new credit facility, issuance of debt and equity securities
    or other external sources of financings. Please read &#147;How
    We Make Cash Distributions&#160;&#151; Operating Surplus and
    Capital Surplus&#160;&#151; Definition of Operating
    Surplus&#148; for a further discussion of the effects of our use
    of estimated maintenance capital expenditures.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(8)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Represents the amount that would be
    required to pay distributions for four quarters at our minimum
    quarterly distribution rate of $&#160;&#160;&#160;&#160;&#160;
    per unit on all of the common and subordinated units that will
    be outstanding immediately following this offering and the
    related distributions on our general partner&#146;s 2.0% general
    partner interest.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    52
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='127'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Significant
    Forecast Assumptions</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The forecast has been prepared by and is the responsibility of
    management. Our forecast reflects our judgment as of the date of
    this prospectus of conditions we expect to exist and the course
    of action we expect to take during the twelve months ending
    June&#160;30, 2011. While the assumptions disclosed in this
    prospectus are not all-inclusive, the assumptions listed below
    are those that we believe are significant to our forecasted
    results of operations. We believe we have a reasonable objective
    basis for these assumptions. We believe our actual results of
    operations will approximate those reflected in our forecast, but
    we can give no assurance that our forecasted results will be
    achieved. There will likely be differences between our forecast
    and the actual results and those differences could be material.
    If the forecast is not achieved, we may not be able to pay cash
    distributions on our common units at the minimum quarterly
    distribution rate or at all.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Production and Revenues.</I>&#160;&#160;We forecast that our
    total revenues for the twelve months ending June&#160;30, 2011
    will be approximately $389.0&#160;million, as compared to
    approximately $293.8&#160;million for 2009. Our forecast of
    total revenues is based primarily on the following assumptions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    We estimate that we will produce approximately 8.1&#160;million
    tons of coal during the twelve months ending June&#160;30, 2011,
    as compared to approximately 5.8&#160;million tons we produced
    in 2009. This estimated volume increase is primarily due to
    additional coal production from our Muhlenberg County mining
    complex that we acquired in the Phoenix Coal acquisition, as a
    result of a full year of production from these properties being
    reflected in the forecast period as well as our deployment of
    larger equipment and implementation of more efficient mining
    practices at that complex. We expect to produce an aggregate of
    approximately 2.1&#160;million tons of coal from our Muhlenberg
    County mining complex in the forecast period compared to
    0.4&#160;million tons of coal during the fourth quarter of 2009
    (or 1.6&#160;million tons on an annualized basis). We expect
    that our coal production during the forecast period from our
    other mining complexes will increase slightly compared to 2009.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    We estimate that we will sell approximately 8.8&#160;million
    tons of coal during the twelve months ending June&#160;30, 2011,
    as compared to approximately 6.3&#160;million tons we sold in
    2009. We have committed to sell approximately 8.1&#160;million
    tons, of which 7.9&#160;million tons are priced and
    0.2&#160;million tons are subject to price re-openers under a
    long-term coal sales contract. As described below, we expect to
    purchase approximately 0.7&#160;million tons to balance our
    estimated sales volumes. Our estimates assume that we will be
    successful in repricing these 0.2&#160;million tons at slightly
    higher prices. Our estimates also assume that our customers with
    options to take delivery of additional tons during the forecast
    period will not exercise their options.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    We estimate that the average sales price per ton for committed
    tons will be $37.87 for the twelve months ending June&#160;30,
    2011, as compared to $40.27 for 2009. This estimate takes into
    account prices in our long-term contracts, including our
    estimate of the amount of applicable cost pass through or
    inflation adjustment provisions, and gives effect to the full
    year impact of the lower priced coal sales contracts that we
    assumed in connection with the Phoenix Coal acquisition, and the
    expiration of a short-term supplemental price increase that took
    effect in 2009 in connection with the amendment of a long-term
    coal sales contract.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    We estimate that the average sales price per ton for uncommitted
    tons will be $40.32 for the twelve months ending June&#160;30,
    2011. Our estimated average sales price for these tons assumes
    that we will be successful in selling those uncommitted tons at
    prices that reflect management&#146;s current estimates of
    market conditions and pricing trends.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    We estimate that our royalty and non-coal revenue, which
    consists of royalty payments received on our underground coal
    reserves as well as limestone sales, barge loading fees and
    other sources of revenue, will be $9.5&#160;million for the
    twelve months ending June&#160;30, 2011, as compared to
    $7.2&#160;million for 2009. This increase is primarily due to
    increased barge-loading fees under a new contract at our Island
    river terminal in western Kentucky. We have assumed that the
    overriding royalty payments on our underground coal reserves and
    all other non-coal revenues during the forecast period will
    slightly increase compared to the amounts we received in 2009.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    53
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Purchased Coal.</I>&#160;&#160;We estimate that we will
    purchase approximately 0.7&#160;million tons of coal from third
    parties for the twelve months ending June&#160;30, 2011, as
    compared to approximately 0.5&#160;million tons we purchased in
    2009. This increase is primarily due to the full year impact of
    a long-term coal purchase contract that we assumed in connection
    with the Phoenix Coal acquisition under which we purchase
    approximately 0.4&#160;million tons annually.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of Coal Sales.</I>&#160;&#160;We estimate that our cost
    of coal sales will be $226.4&#160;million for the twelve months
    ending June&#160;30, 2011, as compared to $170.7&#160;million
    for 2009. The increase in cost of coal sales for the forecast
    period as compared to 2009 is primarily attributable to
    increased coal production, partially offset by a decrease in our
    cost of coal sales per ton. We estimate that our cost of coal
    sales per ton for the twelve months ending June&#160;30, 2011
    will be $28.02, as compared to $29.20 for 2009. This decrease is
    attributable to a projected decrease in diesel fuel and
    explosives costs on a per ton basis, partially offset by higher
    non-commodity-related operating costs on a per ton basis due to
    the Phoenix Coal acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of Purchased Coal.</I>&#160;&#160;We forecast our cost
    of purchased coal will be $23.4&#160;million for the twelve
    months ending June&#160;30, 2011, as compared to
    $19.5&#160;million for 2009. This increase is primarily
    attributable to more tons of coal being purchased in the
    forecast period as compared to 2009, partially offset by a
    decrease in the cost per ton of purchased coal. We estimate that
    the cost per ton of purchased coal will be $32.02 for the twelve
    months ending June&#160;30, 2011, as compared to $36.79 for
    2009. During the first quarter of 2009, we bought a higher
    percentage of our purchased coal on the spot market in order to
    meet our coal sales obligations. Since that time, due to a
    long-term coal purchase contract under which we purchase
    approximately 0.4&#160;million tons annually, our need for spot
    market purchases has declined.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Depreciation, Depletion and Amortization.</I>&#160;&#160;We
    forecast depreciation, depletion and amortization expense to be
    approximately $37.4&#160;million for the twelve months ending
    June&#160;30, 2011, as compared to approximately
    $25.9&#160;million for 2009. This increase is primarily due to
    the full year impact of the Phoenix Coal acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selling, General and Administrative
    Expenses.</I>&#160;&#160;We forecast SG&#038;A expenses to be
    approximately $14.7&#160;million for the twelve months ending
    June&#160;30, 2011, as compared to approximately
    $13.2&#160;million for 2009. This increase is primarily
    attributable to $3.0&#160;million in incremental SG&#038;A
    expenses that we expect to incur as a result of being a publicly
    traded partnership, partially offset by a decrease in
    acquisition costs and legal fees, which were higher in 2009 due
    to the one-time costs of the Phoenix Coal acquisition and fees
    incurred in renegotiating our existing credit facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Harrison Resources Distributions.</I>&#160;&#160;We estimate
    that the aggregate cash distributions we will receive from
    Harrison Resources for the twelve months ending June&#160;30,
    2011 will be $7.5&#160;million as compared to $6.3&#160;million
    in 2009. In the forecast period, we have assumed that the cash
    distributions we will receive from Harrison Resources will
    constitute substantially all of our Adjusted EBITDA attributable
    to Harrison Resources. This assumption is consistent with the
    distributions we received from, and the portion of our Adjusted
    EBITDA attributable to, Harrison Resources in 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Financing.</I>&#160;&#160;We forecast interest expense of
    approximately $7.1&#160;million for the twelve months ending
    June&#160;30, 2011, as compared to approximately
    $6.5&#160;million for 2009. Our interest expense for the twelve
    months ending June&#160;30, 2011 is based on the following
    assumptions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    we will repay in full the outstanding borrowings of
    $&#160;&#160;&#160;&#160;&#160; under our existing credit
    facility with a portion of the proceeds from the offering;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    we will borrow approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million under our new
    credit facility;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    for calculating our interest expense, we have assumed a weighted
    average interest rate over the forecast period of 5.0% under our
    new credit facility, which is lower than the weighted average
    interest rate for 2009 under our existing credit
    facility;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    we will maintain a low cash balance.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    54
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Capital Expenditures.</I>&#160;&#160;We forecast capital
    expenditures for the twelve months ending June&#160;30, 2011
    based on the following assumptions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Our estimated maintenance capital expenditures for the forecast
    period are $32.3&#160;million for the twelve months ending
    June&#160;30, 2011, as compared to approximately
    $27.5&#160;million of actual maintenance capital expenditures
    for 2009. This increase is primarily due to a larger asset base,
    including replacement of reserves, following the Phoenix Coal
    acquisition. We expect to fund maintenance capital expenditures
    from cash generated by our operations and from borrowings under
    our new credit facility.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    We have not included any expansion capital expenditures in our
    forecast for the twelve months ending June&#160;30, 2011.
    Expansion capital expenditures are cash expenditures incurred
    for acquisitions or capital improvements, which are (i)&#160;any
    addition or improvement to our capital assets, (ii)&#160;the
    acquisition of existing, or the construction of new, capital
    assets (including coal mines and related assets), or
    (iii)&#160;capital contributions to an entity in which we own an
    equity interest for our pro rata share of the cost of
    acquisitions of existing, or the construction of new, capital
    assets by such entity, in each case if such addition,
    improvement, acquisition or construction is made to increase our
    long-term operating capacity, asset base or operating income.
    Examples of expansion capital expenditures include the
    acquisition of reserves, equipment or a new mine or the
    expansion of an existing mine, to the extent such expenditures
    are expected to expand our long-term operating capacity, asset
    base or operating income. We had approximately
    $23.7&#160;million of actual capital expenditures for 2009 that
    we would have classified as expansion capital expenditures if we
    had distinguished between expansion capital expenditures and
    other capital expenditures during that period. Of the
    $23.7&#160;million, approximately $18.3&#160;million was
    attributable to the Phoenix Coal acquisition and approximately
    $5.4&#160;million was attributable to the purchase of other
    additional coal reserves.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Regulatory, Industry and Economic Factors.</I>&#160;&#160;We
    forecast for the twelve months ending June&#160;30, 2011 based
    on the following assumptions related to regulatory, industry and
    economic factors:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    no material nonperformance or credit-related defaults by
    suppliers, customers or vendors, or shortage of skilled labor;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    all supplies and commodities necessary for production and
    sufficient transportation will be readily available;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    no new federal, state or local regulation of the portions of the
    mining industry in which we operate or any interpretation of
    existing regulation that in either case will be materially
    adverse to our business;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    no material unforeseen geologic conditions or equipment problems
    at our mining locations;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    no material accidents, weather-related incidents, unscheduled
    downtime or similar unanticipated events;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    no major adverse change in the coal markets in which we operate
    resulting from supply or production disruptions, reduced demand
    for our coal or significant changes in the market prices of
    coal;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    no material changes in market, regulatory or overall economic
    conditions.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    55
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='128'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">HOW WE
    MAKE CASH DISTRIBUTIONS</FONT></B>
</DIV>

</A>
<A name='129'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions
    of Available Cash</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">General</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement requires that, within 45&#160;days
    after the end of each quarter, we distribute our available cash
    to unitholders of record on the applicable record date. We will
    adjust the minimum quarterly distribution for the period from
    the closing of the offering
    through&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010 based on the actual length of the period.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Definition
    of Available Cash</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Available cash generally means, for any quarter, all cash on
    hand at the end of the quarter:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    less the amount of cash reserves established by our general
    partner at the date of determination of available cash for the
    quarter to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    provide for the proper conduct of our business (including
    reserves for our future capital expenditures and anticipated
    future credit needs subsequent to that quarter);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    comply with applicable law, any of our debt instruments or other
    agreements;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    provide funds for distributions to our unitholders and to our
    general partner for any one or more of the next four quarters;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    plus, if our general partner so determines, all or any portion
    of the cash on hand on the date of determination of available
    cash for the quarter.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Intent
    to Distribute the Minimum Quarterly Distribution</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to make a minimum quarterly distribution to the
    holders of our common units and subordinated units of
    $&#160;&#160;&#160;&#160;&#160; per unit, or
    $&#160;&#160;&#160;&#160;&#160; on an annualized basis, to the
    extent we have sufficient cash from our operations after the
    establishment of cash reserves and the payment of costs and
    expenses, including reimbursements of expenses to our general
    partner. However, there is no guarantee that we will pay the
    minimum quarterly distribution on our units in any quarter. Even
    if our cash distribution policy is not modified or revoked, the
    amount of distributions paid under our policy and the decision
    to make any distribution is determined by our general partner,
    taking into consideration the terms of our partnership
    agreement. Please read &#147;Management&#146;s Discussion and
    Analysis of Financial Condition and Results of
    Operations&#160;&#151; Liquidity and Capital
    Resources&#160;&#151; Credit Facility&#148; for a discussion of
    the restrictions to be included in our new credit facility that
    may restrict Oxford Mining Company&#146;s ability to make
    distributions to us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">General
    Partner Interest and Incentive Distribution Rights</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the date of this offering, our general partner is entitled
    to 2.0% of all quarterly distributions that we make prior to our
    liquidation. This general partner interest will be represented
    by&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    general partner units upon the completion of this offering. Our
    general partner has the right, but not the obligation, to
    contribute a proportionate amount of capital to us to maintain
    its current general partner interest. Our general partner&#146;s
    initial 2.0% interest in our distributions may be reduced if we
    issue additional limited partner units in the future and our
    general partner does not contribute a proportionate amount of
    capital to us to maintain its 2.0% general partner interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner also currently holds incentive distribution
    rights that entitle it to receive increasing percentages, up to
    a maximum of 50.0%, of the cash we distribute from operating
    surplus (as defined below) in excess of
    $&#160;&#160;&#160;&#160;&#160; per unit per quarter. The
    maximum distribution of 50.0% includes distributions paid to our
    general partner on its 2.0% general partner interest and assumes
    that our general partner maintains its general partner interest
    at 2.0%. The maximum distribution of 50.0% does not include any
    distributions that our
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    56
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    general partner may receive on common units or subordinated
    units that it owns. Please read &#147;&#151;&#160;General
    Partner Interest and Incentive Distribution Rights&#148; for
    additional information.
</DIV>

<A name='130'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Operating
    Surplus and Capital Surplus</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Overview</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All cash distributed to unitholders will be characterized as
    either &#147;operating surplus&#148; or &#147;capital
    surplus.&#148; We treat distributions of available cash from
    operating surplus differently than distributions of available
    cash from capital surplus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Definition
    of Operating Surplus</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We define operating surplus as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    $&#160;&#160;&#160;&#160;&#160;&#160;million (as described
    below); plus
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    all of our cash receipts after the closing of this offering,
    excluding cash from interim capital transactions (as defined
    below); less
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    all of our operating expenditures (as defined below) after the
    closing of this offering; less
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the amount of cash reserves established by our general partner
    prior to the date of determination of available cash to provide
    funds for future operating expenditures.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described above, operating surplus does not reflect actual
    cash on hand that is available for distribution to our
    unitholders. For example, it includes a provision that will
    enable us, if we choose, to distribute as operating surplus up
    to $&#160;&#160;&#160;&#160;&#160;&#160;million of cash we
    receive in the future from non-operating sources such as asset
    sales, issuances of securities and long-term borrowings that
    would otherwise be distributed as capital surplus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We define interim capital transactions as (i)&#160;borrowings,
    (ii)&#160;sales of equity and debt securities, (iii)&#160;sales
    or other dispositions of assets outside the ordinary course of
    business, (iv)&#160;capital contributions received,
    (v)&#160;corporate reorganizations or restructurings and
    (vi)&#160;the termination of interest rate hedge contracts or
    commodity hedge contracts prior to the termination date
    specified therein (provided that cash receipts from any such
    termination will be included in operating surplus in equal
    quarterly installments over the remaining scheduled life of such
    contract).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We define operating expenditures as all of our cash
    expenditures, including, but not limited to, taxes,
    reimbursements of expenses to our general partner, interest
    payments, payments made in the ordinary course of business under
    interest rate hedge contracts and commodity hedge contracts,
    estimated maintenance capital expenditures (as discussed in
    further detail below) and non-pro rata repurchases of units
    (other than those made with the proceeds of an interim capital
    transaction), provided that operating expenditures will not
    include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    payments (including prepayments and prepayment penalties) of
    principal of and premium on indebtedness;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    expansion capital expenditures;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    actual maintenance capital expenditures;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    payment of transaction expenses (including taxes) relating to
    interim capital transactions;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    distributions to partners.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Capital
    Expenditures</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Maintenance capital expenditures are cash expenditures
    (including expenditures for the addition or improvement to our
    capital assets) made to maintain or replace, including over the
    long term, our operating capacity, asset base or operating
    income. Examples of maintenance capital expenditures include
    capital
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    57
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    expenditures associated with the replacement of equipment and
    coal reserves, whether through the expansion of an existing mine
    or the acquisition or development of new reserves, to the extent
    such expenditures are made to maintain our operating capacity,
    asset base or operating income. Maintenance capital expenditures
    will also include reclamation expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because our maintenance capital expenditures can be irregular,
    the amount of our actual maintenance capital expenditures may
    differ substantially from period to period, which could cause
    similar fluctuations in the amounts of operating surplus,
    adjusted operating surplus and cash available for distribution
    to our unitholders if we subtracted actual maintenance capital
    expenditures from operating surplus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement requires that an estimate of the
    average quarterly maintenance capital expenditures necessary
    over the long term be subtracted from operating surplus each
    quarter as opposed to the actual amounts spent. The amount of
    estimated maintenance capital expenditures deducted from
    operating surplus for those periods will be subject to review
    and change by our general partner at least once a year. The
    estimate will be made annually and whenever an event occurs that
    is likely to result in a material adjustment to the amount of
    our maintenance capital expenditures on a long-term basis, such
    as a major acquisition or the introduction of new governmental
    regulations that will impact our business. For purposes of
    calculating operating surplus (other than when used to determine
    whether the subordination period has ended), any adjustment to
    this estimate will be prospective only. For a discussion of the
    amounts we have allocated toward estimated maintenance capital
    expenditures, please read &#147;Cash Distribution Policy and
    Restrictions on Distributions.&#148;
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The use of estimated maintenance capital expenditures in
    calculating operating surplus will have the following effects:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    it will reduce the risk that maintenance capital expenditures in
    any one quarter will be large enough to render operating surplus
    less than the initial quarterly distribution to be paid on all
    the units for the quarter and subsequent quarters;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    it will increase our ability to distribute as operating surplus
    cash we receive from non-operating sources;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    it will be more difficult for us to raise our distribution above
    the minimum quarterly distribution and pay incentive
    distributions on the incentive distribution rights held by our
    general partner;&#160;and
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    it will reduce the likelihood that a large maintenance capital
    expenditure in a period will prevent our general partner&#146;s
    affiliates from being able to convert some or all of their
    subordinated units into common units since the effect of an
    estimate is to spread the expected expense over several periods,
    thereby mitigating the effect of the actual payment of the
    expenditure on any single period.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expansion capital expenditures are cash expenditures incurred
    for acquisitions or capital improvements, which are (i)&#160;any
    addition or improvement to our capital assets, (ii)&#160;the
    acquisition of existing, or the construction of new, capital
    assets (including coal mines and related assets), or
    (iii)&#160;capital contributions to an entity in which we own an
    equity interest for our pro rata share of the cost of
    acquisitions of existing, or the construction of new, capital
    assets by such entity, in each case if such addition,
    improvement, acquisition or construction is made to increase our
    long-term operating capacity, asset base or operating income.
    Examples of expansion capital expenditures include the
    acquisition of reserves, equipment or a new mine or the
    expansion of an existing mine, to the extent such capital
    expenditures are expected to expand our long-term operating
    capacity, asset base or operating income. Expansion capital
    expenditures are not subtracted from operating surplus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<A name='131'>
<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Subordination
    Period</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">General</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement provides that, during the
    subordination period (which we define below), the common units
    will have the right to receive distributions of available cash
    from operating surplus each quarter in an amount equal to
    $&#160;&#160;&#160;&#160;&#160; per common unit, which amount is
    defined in our partnership agreement as the minimum quarterly
    distribution, plus any arrearages in the payment of the minimum
    quarterly distribution on the common units from prior quarters,
    before any distributions of available cash from operating
    surplus may
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    58
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    be made on the subordinated units. These units are deemed
    &#147;subordinated&#148; because for a period of time, referred
    to as the subordination period, the subordinated units will not
    be entitled to receive any distributions until the common units
    have received the minimum quarterly distribution plus any
    arrearages from prior quarters. Furthermore, no arrearages will
    be paid on the subordinated units. The practical effect of the
    subordinated units is to increase the likelihood that during the
    subordination period there will be available cash to be
    distributed on the common units.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Definition
    of Subordination Period</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The subordination period will begin upon the date of this
    offering and will extend until the first business day of any
    quarter beginning after June&#160;30, 2013 that each of the
    following tests are met:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    distributions of available cash from operating surplus on each
    of the outstanding common units, subordinated units and general
    partner units equaled or exceeded the minimum quarterly
    distribution for each of the three consecutive, non-overlapping
    four-quarter periods immediately preceding that date;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the &#147;adjusted operating surplus&#148; (as defined below)
    generated during each of the three consecutive, non-overlapping
    four-quarter periods immediately preceding that date equaled or
    exceeded the sum of the minimum quarterly distributions on all
    of the outstanding common units, subordinated units and general
    partner units during those periods on a fully diluted basis
    during those periods;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    there are no arrearages in payment of the minimum quarterly
    distribution on the common units.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of determining whether sufficient adjusted
    operating surplus has been generated under the above conversion
    test, the Conflicts Committee may adjust operating surplus
    upwards or downwards if it determines in good faith that the
    amount of estimated maintenance capital expenditures used in the
    determination of adjusted operating surplus was materially
    incorrect, based on the circumstances prevailing at the time of
    the original estimate, for any one or more of the preceding two
    four-quarter periods.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Early
    Termination of Subordination Period</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, the subordination period will
    automatically terminate and all of the subordinated units will
    convert into common units on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis if each of the following occurs:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    distributions of available cash from operating surplus on each
    of the outstanding common units, subordinated units and general
    partner units equaled or exceeded
    $&#160;&#160;&#160;&#160;&#160; per quarter (150.0% of the
    minimum quarterly distribution) for each calendar quarter in the
    immediately preceding four-quarter period;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the &#147;adjusted operating surplus&#148; (as defined below)
    generated during each calendar quarter in the immediately
    preceding four-quarter period equaled or exceeded the sum of
    $&#160;&#160;&#160;&#160;&#160; (150.0% of the minimum quarterly
    distribution) on each of the outstanding common units,
    subordinated units and general partner units during that period
    on a fully diluted basis;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    there are no arrearages in payment of the minimum quarterly
    distributions on the common units.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Expiration
    of the Subordination Period</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the subordination period ends, each outstanding
    subordinated unit will convert into one common unit and will
    participate pro-rata with the other common units in
    distributions of available cash. In addition, if the unitholders
    remove our general partner other than for cause and no units
    held by our general partner and its affiliates are voted in
    favor of such removal:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the subordination period will end and each subordinated unit
    will immediately convert into one common unit;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    any existing arrearages in payment of the minimum quarterly
    distribution on the common units will be extinguished;&#160;and
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    59
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner will have the right to convert its general
    partner interest and its incentive distribution rights into
    common units or to receive cash in exchange for those interests.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Definition
    of Adjusted Operating Surplus</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adjusted operating surplus is intended to reflect the cash
    generated from operations during a particular period and
    therefore excludes net drawdowns of reserves of cash generated
    in prior periods. Adjusted operating surplus consists of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    operating surplus generated with respect to that period; less
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    any net decrease in cash reserves for operating expenditures
    with respect to that period not relating to an operating
    expenditure made with respect to that period; plus
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    any net decrease made in subsequent periods to cash reserves for
    operating expenditures initially established with respect to
    such period to the extent such decrease results in a reduction
    in adjusted operating surplus in subsequent periods; plus
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    any net increase in cash reserves for operating expenditures
    with respect to that period required by any debt instrument for
    the repayment of principal, interest or premium.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Distributions
    of Available Cash from Operating Surplus during the
    Subordination Period</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will make distributions of available cash from operating
    surplus for any quarter during the subordination period in the
    following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>first</I>, 98% to the common unitholders, pro rata, and 2.0%
    to our general partner, until we distribute for each outstanding
    common unit an amount equal to the minimum quarterly
    distribution for that quarter;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>second</I>, 98% to the common unitholders, pro rata, and 2.0%
    to our general partner, until we distribute for each outstanding
    common unit an amount equal to any arrearages in payment of the
    minimum quarterly distribution on the common units for any prior
    quarters during the subordination period;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>third</I>, 98% to the subordinated unitholders, pro rata, and
    2.0% to our general partner, until we distribute for each
    subordinated unit an amount equal to the minimum quarterly
    distribution for that quarter;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>thereafter</I>, in the manner described in
    &#147;&#151;&#160;General Partner Interest and Incentive
    Distribution Rights&#148; below.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The preceding discussion is based on the assumptions that our
    general partner maintains its 2.0% general partner interest and
    that we do not issue additional classes of equity securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Distributions
    of Available Cash from Operating Surplus after the Subordination
    Period</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will make distributions of available cash from operating
    surplus for any quarter after the subordination period in the
    following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>first</I>, 98% to all unitholders, pro rata, and 2.0% to our
    general partner, until we distribute for each outstanding unit
    an amount equal to the minimum quarterly distribution for that
    quarter;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>thereafter</I>, in the manner described in
    &#147;&#151;&#160;General Partner Interest and Incentive
    Distribution Rights&#148; below.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The preceding discussion is based on the assumptions that our
    general partner maintains its 2.0% general partner interest and
    that we do not issue additional classes of equity securities.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    60
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='132'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General
    Partner Interest and Incentive Distribution Rights</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement provides that our general partner
    initially will be entitled to 2.0% of all distributions that we
    make prior to our liquidation. Our general partner has the
    right, but not the obligation, to contribute a proportionate
    amount of capital to us to maintain its 2.0% general partner
    interest if we issue additional units. Our general
    partner&#146;s 2.0% interest, and the percentage of our cash
    distributions to which it is entitled from such 2.0% interest,
    will be proportionately reduced if we issue additional units in
    the future and our general partner does not contribute a
    proportionate amount of capital to us in order to maintain its
    2.0% general partner interest. Our general partner will be
    entitled to make a capital contribution in order to maintain its
    2.0% general partner interest in the form of the contribution to
    us of common units based on the current market value of the
    contributed common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Incentive distribution rights represent the right to receive an
    increasing percentage (13.0%, 23.0% and 48.0%) of quarterly
    distributions of available cash from operating surplus after the
    minimum quarterly distribution and the target distribution
    levels have been achieved. Our general partner currently holds
    the incentive distribution rights, but may transfer these rights
    separately from its general partner interest, subject to
    restrictions in our partnership agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discussion assumes that our general partner
    maintains its 2.0% general partner interest, that there are no
    arrearages on common units and that our general partner
    continues to own the incentive distribution rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If for any quarter:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    we have distributed available cash from operating surplus to the
    unitholders in an amount equal to the minimum quarterly
    distribution;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    we have distributed available cash from operating surplus on
    outstanding common units and the general partner interest in an
    amount necessary to eliminate any cumulative arrearages in
    payment of the minimum quarterly distribution to the common
    unitholders;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    then, we will distribute any additional available cash from
    operating surplus for that quarter among the unitholders and our
    general partner in the following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>first</I>, 98% to all unitholders, pro rata, and 2.0% to our
    general partner, until each unitholder receives a total of
    $&#160;&#160;&#160;&#160;&#160; per unit for that quarter (the
    &#147;first target distribution&#148;);
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>second</I>, 85% to all unitholders, pro rata, and 15% to our
    general partner, until each unitholder receives a total of
    $&#160;&#160;&#160;&#160;&#160; per unit for that quarter (the
    &#147;second target distribution&#148;);
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>third</I>, 75% to all unitholders, pro rata, and 25% to our
    general partner, until each unitholder receives a total of
    $&#160;&#160;&#160;&#160;&#160; per unit for that quarter (the
    &#147;third target distribution&#148;);&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>thereafter</I>, 50% to all unitholders, pro rata, and 50% to
    our general partner.
</TD>
</TR>

</TABLE>

<A name='133'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Percentage
    Allocations of Available Cash from Operating Surplus</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table illustrates the percentage allocations of
    available cash from operating surplus between the unitholders
    and our general partner based on the specified target
    distribution levels. The amounts set forth under &#147;Marginal
    Percentage Interest in Distributions&#148; are the percentage
    interests of our general partner and the unitholders in any
    available cash from operating surplus we distribute up to and
    including the corresponding amount in the column &#147;Total
    Quarterly Distribution Per Unit Target Amount.&#148; The
    percentage interests shown for our unitholders and our general
    partner for the minimum quarterly distribution are also
    applicable to quarterly distribution amounts that are less than
    the minimum quarterly distribution. The percentage interests set
    forth below for our general partner include its 2.0% general
    partner interest and assume that there are no arrearages on
    common units, our general partner has contributed any additional
    capital necessary to maintain its 2.0% general partner interest
    and our general partner has not transferred its incentive
    distribution rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    61
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Marginal Percentage Interest<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Total Quarterly Distribution<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>in Distributions</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Unit Target Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unitholders</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>General Partner</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Minimum Quarterly Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;$&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="bottom">
    up to $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    above $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="bottom">
    up to $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    above $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="bottom">
    up to $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    above $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<A name='134'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General
    Partner&#146;s Right to Reset Incentive Distribution
    Levels</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner, as the holder of our incentive distribution
    rights, has the right under our partnership agreement to elect
    to relinquish the right to receive incentive distribution
    payments based on the initial cash target distribution levels
    and to reset, at higher levels, the minimum quarterly
    distribution amount and cash target distribution levels upon
    which the incentive distribution payments to our general partner
    would be set. Our general partner&#146;s right to reset the
    minimum quarterly distribution amount and the target
    distribution levels upon which the incentive distributions
    payable to our general partner are based may be exercised,
    without approval of our unitholders or the conflicts committee
    of our general partner, at any time when there are no
    subordinated units outstanding and we have made cash
    distributions to the holders of the incentive distribution
    rights at the highest level of incentive distribution for each
    of the prior four consecutive fiscal quarters. The reset minimum
    quarterly distribution amount and target distribution levels
    will be higher than the minimum quarterly distribution amount
    and the target distribution levels prior to the reset such that
    our general partner will not receive any incentive distributions
    under the reset target distribution levels until cash
    distributions per unit following this event increase as
    described below. We anticipate that our general partner would
    exercise this reset right in order to facilitate acquisitions or
    internal growth projects that would otherwise not be
    sufficiently accretive to cash distributions per common unit,
    taking into account the existing levels of incentive
    distribution payments being made to our general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the resetting of the minimum quarterly
    distribution amount and the target distribution levels and the
    corresponding relinquishment by our general partner of incentive
    distribution payments based on the target cash distributions
    prior to the reset, our general partner will be entitled to
    receive a number of newly issued common units and general
    partner units based on a predetermined formula described below
    that takes into account the &#147;cash parity&#148; value of the
    average cash distributions related to the incentive distribution
    rights received by our general partner for the two quarters
    prior to the reset event as compared to the average cash
    distributions per common unit during that two-quarter period.
    Our general partner will be issued the number of general partner
    units necessary to maintain our general partner&#146;s interest
    in us immediately prior to the reset election.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of common units that our general partner would be
    entitled to receive from us in connection with a resetting of
    the minimum quarterly distribution amount and the target
    distribution levels then in effect would be equal to the
    quotient determined by dividing (x)&#160;the average amount of
    cash distributions received by our general partner in respect of
    its incentive distribution rights during the two consecutive
    fiscal quarters ended immediately prior to the date of such
    reset election by (y)&#160;the average of the amount of cash
    distributed per common unit during each of that two-quarter
    period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following a reset election by our general partner, the minimum
    quarterly distribution amount will be reset to an amount equal
    to the average cash distribution amount per unit for the two
    fiscal quarters immediately preceding the reset election (which
    amount we refer to as the &#147;reset minimum quarterly
    distribution&#148;) and the target distribution levels will be
    reset to be correspondingly higher such that we would distribute
    all of our available cash from operating surplus for each
    quarter thereafter as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>first</I>, 98.0% to all unitholders, pro rata, and 2.0% to
    our general partner, until each unitholder receives an amount
    equal to 115.0% of the reset minimum quarterly distribution for
    that quarter;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    62
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>second</I>, 85.0% to all unitholders, pro rata, and 15.0% to
    our general partner, until each unitholder receives an amount
    per unit equal to 125.0% of the reset minimum quarterly
    distribution for the quarter;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>third</I>, 75.0% to all unitholders, pro rata, and 25.0% to
    our general partner, until each unitholder receives an amount
    per unit equal to 150.0% of the reset minimum quarterly
    distribution for the quarter;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>thereafter</I>, 50.0% to all unitholders, pro rata, and 50.0%
    to our general partner.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table illustrates the percentage allocation of
    available cash from operating surplus between the unitholders
    and our general partner at various cash distribution levels
    (i)&#160;pursuant to the cash distribution provisions of our
    partnership agreement in effect at the closing of this offering,
    as well as (ii)&#160;following a hypothetical reset of the
    minimum quarterly distribution and target distribution levels
    based on the assumption that the average quarterly cash
    distribution amount per common unit during the two fiscal
    quarters immediately preceding the reset election was
    $&#160;&#160;&#160;&#160;&#160;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="32%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Marginal Percentage<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Quarterly Distribution<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Interest in Distributions</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B>Quarterly Distribution Per Unit<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Unit Prior to Reset</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unitholders</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>General Partner</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Following Hypothetical Reset</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Minimum Quarterly Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;$&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    98%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;$
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    First Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="bottom">
    up to $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    98%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    up to&#160;&#160;&#160;&#160;&#160;$
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(1</SUP>

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">)</SUP>

</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Second Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    above $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="bottom">
    up to $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    85%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    above $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP> up

    to&#160;&#160;&#160;&#160;&#160;$
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2</SUP>

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">)</SUP>

</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Third Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    above $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="bottom">
    up to $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    75%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    above $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP> up

    to&#160;&#160;&#160;&#160;&#160;$
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3</SUP>

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">)</SUP>

</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    above $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    50%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    above&#160;&#160;&#160;&#160;&#160;$
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3</SUP>

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">)</SUP>

</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">This amount is 115.0% of the
    hypothetical reset minimum quarterly distribution.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">This amount is 125.0% of the
    hypothetical reset minimum quarterly distribution.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(3)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">This amount is 150.0% of the
    hypothetical reset minimum quarterly distribution.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table illustrates the total amount of available
    cash from operating surplus that would be distributed to the
    unitholders and our general partner, including in respect of
    incentive distribution rights, or IDRs, based on an average of
    the amounts distributed each quarter for the two quarters
    immediately prior to the reset. The table assumes that
    immediately prior to the reset there would
    be&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units outstanding, our general partner has maintained its
    2.0% general partner interest, and the average distribution to
    each common unit would be $&#160;&#160;&#160;&#160;&#160; for
    the two quarters prior to the reset.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="4" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Cash<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cash Distributions to General Partner Prior to Reset</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="4" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Distributions to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2.0%<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="4" nowrap align="center" valign="bottom">
    <B>Quarterly<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>General<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="4" nowrap align="center" valign="bottom">
    <B>Distribution Per<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unitholders<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Class C<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Partner<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Distribution<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="4" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unit Prior to Reset</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Prior to Reset</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Interest</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Rights</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Distributions</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Minimum Quarterly Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;$
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    First Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    up to $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Second Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    above $
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    up to $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Third Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    above $
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    up to $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    above $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table illustrates the total amount of available
    cash from operating surplus that would be distributed to the
    unitholders and our general partner, including in respect of
    IDRs, with respect to the quarter in which the reset occurs. The
    table reflects that as a result of the reset there would
    be&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units outstanding, our general partner&#146;s 2.0%
    interest has been maintained, and the average distribution to
    each common unit would be $&#160;&#160;&#160;&#160;&#160; . The
    number of common units to be issued to our general partner upon
    the reset was calculated by dividing (i)&#160;the average of the
    amounts received by our general partner in respect of its IDRs
    for the two quarters prior to the reset as shown in the table
    above, or $&#160;&#160;&#160;&#160;&#160;; by (ii)&#160;the
    average
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    63
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    available cash distributed on each common unit for the two
    quarters prior to the reset as shown in the table above, or
    $&#160;&#160;&#160;&#160;&#160; .
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="30%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Cash<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cash Distributions to General Partner After Reset</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Distributions to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2.0%<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>General<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Quarterly Distribution<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unitholders<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Class C<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Partner<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Distribution<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Unit After Reset</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>After Reset</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Interest</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Rights</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Distributions</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Minimum Quarterly Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;$&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    First Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="bottom">
    up to $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Second Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    above $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="bottom">
    up to $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Third Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    above $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="right" valign="bottom">
    up to $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    above $&#160;&#160;&#160;&#160;&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner will be entitled to cause the minimum
    quarterly distribution amount and the target distribution levels
    to be reset on more than one occasion, provided that it may not
    make a reset election except at a time when it has received
    incentive distributions for the prior four consecutive fiscal
    quarters based on the highest level of incentive distributions
    that it is entitled to receive under our partnership agreement.
</DIV>

<A name='135'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions
    from Capital Surplus</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">How
    Distributions from Capital Surplus Will Be Made</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will make distributions of available cash from capital
    surplus, if any, in the following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>first</I>, 98% to all unitholders, pro rata, and 2.0% to our
    general partner, until we distribute for each common unit that
    was issued in this offering, an amount of available cash from
    capital surplus equal to the initial public offering price in
    this offering;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>second</I>, 98% to all unitholders, pro rata, and 2.0% to our
    general partner, until we distribute for each common unit, an
    amount of available cash from capital surplus equal to any
    unpaid arrearages in payment of the minimum quarterly
    distribution on the outstanding common units;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>thereafter</I>, we will make all distributions of available
    cash from capital surplus as if they were from operating surplus.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The preceding discussion is based on the assumptions that our
    general partner maintains its 2.0% general partner interest and
    that we do not issue additional classes of equity securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Effect
    of a Distribution from Capital Surplus</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement treats a distribution of capital
    surplus as the repayment of the initial unit price from this
    initial public offering, which is a return of capital. The
    initial public offering price less any distributions of capital
    surplus per unit is referred to as the &#147;unrecovered initial
    unit price.&#148; Each time a distribution of capital surplus is
    made, the minimum quarterly distribution and the target
    distribution levels will be reduced in the same proportion as
    the corresponding reduction in the unrecovered initial unit
    price. Because distributions of capital surplus will reduce the
    minimum quarterly distribution, after any of these distributions
    are made, it may be easier for our general partner to receive
    incentive distributions and for the subordinated units to
    convert into common units. However, any distribution of capital
    surplus before the unrecovered initial unit price is reduced to
    zero cannot be applied to the payment of the minimum quarterly
    distribution or any arrearages.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Once we distribute capital surplus on a unit issued in this
    offering in an amount equal to the initial unit price, we will
    reduce the minimum quarterly distribution and the target
    distribution levels to zero. We will then make all future
    distributions from operating surplus, with 50% being paid to the
    unitholders, pro rata, and 50% to our general partner. The
    percentage interests shown for our general partner include its
    2.0% general partner interest and assume that our general
    partner has not transferred the incentive distribution rights.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    64
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='136'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Adjustment
    to the Minimum Quarterly Distribution and Target Distribution
    Levels</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to adjusting the minimum quarterly distribution and
    target distribution levels to reflect a distribution of capital
    surplus, if we combine our units into fewer units or subdivide
    our units into a greater number of units, we will
    proportionately adjust:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the minimum quarterly distribution;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the number of common units into which a subordinated unit is
    convertible;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    target distribution levels;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the unrecovered initial unit price.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For example, if a
    <FONT style="white-space: nowrap">two-for-one</FONT>
    split of the common units should occur, the minimum quarterly
    distribution, the target distribution levels and the unrecovered
    initial unit price would each be reduced to 50% of its initial
    level, and each subordinated unit would be convertible into two
    common units. We will not make any adjustment by reason of the
    issuance of additional units for cash or property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, if legislation is enacted or if existing law is
    modified or interpreted by a governmental authority, so that we
    become taxable as a corporation or otherwise subject to taxation
    as an entity for federal, state or local income tax purposes,
    our partnership agreement specifies that the minimum quarterly
    distribution and the target distribution levels for each quarter
    may be reduced by multiplying each distribution level by a
    fraction, the numerator of which is available cash for that
    quarter and the denominator of which is the sum of available
    cash for that quarter plus our general partner&#146;s estimate
    of our aggregate liability for the quarter for such income taxes
    payable by reason of such legislation or interpretation. To the
    extent that the actual tax liability differs from the estimated
    tax liability for any quarter, the difference will be accounted
    for in subsequent quarters.
</DIV>

<A name='137'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions
    of Cash Upon Liquidation</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">General</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we dissolve in accordance with our partnership agreement, we
    will sell or otherwise dispose of our assets in a process called
    liquidation. We will first apply the proceeds of liquidation to
    the payment of our creditors. We will distribute any remaining
    proceeds to the unitholders and our general partner, in
    accordance with their capital account balances, as adjusted to
    reflect any gain or loss upon the sale or other disposition of
    our assets in liquidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The allocations of gain and loss upon liquidation are intended,
    to the extent possible, to entitle the holders of outstanding
    common units to a preference over the holders of outstanding
    subordinated units upon our liquidation, to the extent required
    to permit common unitholders to receive their unrecovered
    initial unit price plus the minimum quarterly distribution for
    the quarter during which liquidation occurs plus any unpaid
    arrearages in payment of the minimum quarterly distribution on
    the common units. However, there may not be sufficient gain upon
    our liquidation to enable the holders of common units to fully
    recover all of these amounts, even though there may be cash
    available for distribution to the holders of subordinated units.
    Any further net gain recognized upon liquidation will be
    allocated in a manner that takes into account the incentive
    distribution rights of our general partner.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Manner
    of Adjustments for Gain</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The manner of the adjustment for gain is set forth in our
    partnership agreement. If our liquidation occurs before the end
    of the subordination period, we will allocate any gain to our
    partners in the following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>first</I>, to our general partner and the holders of units
    who have negative balances in their capital accounts to the
    extent of and in proportion to those negative balances;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    65
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>second</I>, 98% to the common unitholders, pro rata, and 2.0%
    to our general partner, until the capital account for each
    common unit is equal to the sum of:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;the unrecovered initial unit price;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;the amount of the minimum quarterly distribution for
    the quarter during which our liquidation occurs;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;any unpaid arrearages in payment of the minimum
    quarterly distribution;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>third</I>, 98% to the subordinated unitholders, pro rata, and
    2.0% to our general partner, until the capital account for each
    subordinated unit is equal to the sum of:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;the unrecovered initial unit price;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;the amount of the minimum quarterly distribution for
    the quarter during which our liquidation occurs;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>fourth</I>, 98% to all unitholders, pro rata, and 2.0% to our
    general partner, until we allocate under this paragraph an
    amount per unit equal to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;the sum of the excess of the first target distribution
    per unit over the minimum quarterly distribution per unit for
    each quarter of our existence; less
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;the cumulative amount per unit of any distributions of
    available cash from operating surplus in excess of the minimum
    quarterly distribution per unit that we distributed 98% to the
    unitholders, pro rata, and 2.0% to our general partner, for each
    quarter of our existence;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>fifth</I>, 85% to all unitholders, pro rata, and 15% to our
    general partner, until we allocate under this paragraph an
    amount per unit equal to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;the sum of the excess of the second target distribution
    per unit over the first target distribution per unit for each
    quarter of our existence; less
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;the cumulative amount per unit of any distributions of
    available cash from operating surplus in excess of the first
    target distribution per unit that we distributed 96% to the
    unitholders, pro rata, and 4% to our general partner for each
    quarter of our existence;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>sixth</I>, 75% to all unitholders, pro rata, and 25% to our
    general partner, until we allocate under this paragraph an
    amount per unit equal to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;the sum of the excess of the third target distribution
    per unit over the second target distribution per unit for each
    quarter of our existence; less
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;the cumulative amount per unit of any distributions of
    available cash from operating surplus in excess of the second
    target distribution per unit that we distributed 94% to the
    unitholders, pro rata, and 6% to our general partner for each
    quarter of our existence;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>thereafter</I>, 50% to all unitholders, pro rata, and 50% to
    our general partner.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The percentages set forth above are based on the assumption that
    our general partner has not transferred its incentive
    distribution rights and that we do not issue additional classes
    of equity securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the liquidation occurs after the end of the subordination
    period, the distinction between common units and subordinated
    units will disappear, so that clause&#160;(3) of the second
    bullet point above and all of the third bullet point above will
    no longer be applicable.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    66
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Manner
    of Adjustments for Losses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If our liquidation occurs before the end of the subordination
    period, we will generally allocate any loss to our general
    partner and unitholders in the following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>first</I>, 98% to holders of subordinated units in proportion
    to the positive balances in their capital accounts and 2.0% to
    our general partner, until the capital accounts of the
    subordinated unitholders have been reduced to zero;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>second</I>, 98% to the holders of common units in proportion
    to the positive balances in their capital accounts and 2.0% to
    our general partner, until the capital accounts of the common
    unitholders have been reduced to zero;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>thereafter</I>, 100% to our general partner.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the liquidation occurs after the end of the subordination
    period, the distinction between common units and subordinated
    units will disappear, so that all of the first bullet point
    above will no longer be applicable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Adjustments
    to Capital Accounts</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will make adjustments to capital accounts upon the issuance
    of additional units. In doing so, we will allocate any
    unrealized and, for tax purposes, unrecognized gain or loss
    resulting from the adjustments to the unitholders and our
    general partner in the same manner as we allocate gain or loss
    upon liquidation. In the event that we make positive adjustments
    to the capital accounts upon the issuance of additional units,
    we will allocate any later negative adjustments to the capital
    accounts resulting from the issuance of additional units or upon
    our liquidation in a manner which results, to the extent
    possible, in our general partner&#146;s capital account balances
    equaling the amount which they would have been if no earlier
    positive adjustments to the capital accounts had been made.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    67
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='138'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELECTED
    HISTORICAL AND PRO FORMA CONSOLIDATED<BR>
    FINANCIAL AND OPERATING DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents our selected historical
    consolidated financial and operating data, as well as that of
    our accounting predecessor and wholly owned subsidiary, Oxford
    Mining Company, as of the dates and for the periods indicated.
    The following table also presents our selected pro forma
    consolidated financial and operating data as of the dates and
    for the periods indicated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selected financial data for the year ended December&#160;31,
    2005 are derived from the audited historical consolidated
    balance sheet of Oxford Mining Company that is not included in
    this prospectus. The selected historical consolidated financial
    data presented as of and for the year ended December&#160;31,
    2006 are derived from the audited historical consolidated
    financial statements of Oxford Mining Company that are not
    included in this prospectus. The selected historical
    consolidated financial data presented for the period from
    January&#160;1, 2007 to August&#160;23, 2007 are derived from
    the audited historical consolidated financial statements of
    Oxford Mining Company that are included elsewhere in this
    prospectus. The selected historical consolidated financial data
    presented as of December&#160;31, 2007 for the period from
    August&#160;24, 2007 to December&#160;31, 2007 and as of and for
    the years ended December&#160;31, 2008 and 2009 are derived from
    our audited historical consolidated financial statements that
    are included elsewhere in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selected pro forma consolidated financial data presented as
    of and for the year ended December&#160;31, 2009 are derived
    from our unaudited pro forma consolidated financial statements
    included elsewhere in this prospectus. Our unaudited pro forma
    consolidated statement of operations and consolidated balance
    sheet give pro forma effect to this offering and the
    transactions related to this offering described in
    &#147;Summary&#160;&#151; The Transactions&#148; and &#147;Use
    of Proceeds.&#148; The unaudited pro forma consolidated
    statement of operations also gives pro forma effect to the
    Phoenix Coal acquisition. The unaudited pro forma consolidated
    balance sheet assumes this offering and the transactions related
    to this offering occurred as of December&#160;31, 2009. The
    unaudited pro forma consolidated statement of operations for the
    year ended December&#160;31, 2009 assumes the Phoenix Coal
    acquisition, this offering and the transactions related to this
    offering occurred as of January&#160;1, 2009. We have not given
    pro forma effect to incremental selling, general and
    administrative expenses of approximately $3.0&#160;million that
    we expect to incur as a result of being a publicly traded
    partnership.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a detailed discussion of the following table, please read
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations.&#148; The following table
    should also be read in conjunction with
    &#147;Summary&#160;&#151; The Transactions,&#148; &#147;Use of
    Proceeds,&#148; &#147;Business&#160;&#151; Our History,&#148;
    the historical consolidated financial statements of Oxford
    Mining Company and our unaudited pro forma consolidated
    financial statements and audited consolidated financial
    statements included elsewhere in this prospectus. Among other
    things, those historical and pro forma consolidated financial
    statements include more detailed information regarding the basis
    of presentation for the information in the following table.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents a non-GAAP financial measure,
    Adjusted EBITDA, which we use in our business as it is an
    important supplemental measure of our performance. Adjusted
    EBITDA represents net income (loss) attributable to our
    unitholders before interest, taxes, depreciation, depletion and
    amortization, gain from purchase of a business, amortization of
    below-market coal sales contracts and non-cash equity
    compensation expense. This measure is not calculated or
    presented in accordance with GAAP. We explain this
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    68
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    measure below and reconcile it to net income (loss) attributable
    to our unitholders, its most directly comparable financial
    measure calculated and presented in accordance with GAAP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="12" nowrap align="center" valign="bottom">
    <B>Oxford Mining Company<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="12" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="12" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Predecessor)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="12" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Oxford Resource Partners, LP</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oxford Resource<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>January&#160;1,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>August&#160;24,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Partners, LP</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>August&#160;23,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31, <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="32" nowrap align="center" valign="bottom">
    <B>(in thousands, except per ton amounts)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
     <B>Statement of Operations Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Revenues:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Coal sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    141,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    96,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    61,324
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    193,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    254,171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    312,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Transportation revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Royalty and non-coal revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,267
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Total revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,935
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    230,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    293,844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    356,894
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Cost of coal sales (excluding DD&#038;A, shown separately)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106,657
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,415
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,721
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151,421
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    213,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Cost of purchased coal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,494
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,925
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,487
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Cost of transportation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Depreciation, depletion, and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,396
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,097
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,242
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,735
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Total costs and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    171,080
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    222,422
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    337.618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Income (loss) from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (511
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,502
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,276
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,672
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,386
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,498
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,720
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,484
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,341
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Gain from purchase of
    business<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,871
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Less: Net income attributable to noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (682
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (537
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,891
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,895
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,895
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,553
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,482
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>Statement of Cash Flows Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Net cash provided by (used in):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,236
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (8,478
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,547
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,619
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (103,336
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23,901
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (51,115
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,548
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (234
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,274
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,494
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>Other Financial Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Adjusted
    EBITDA<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,170
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,349
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39,016
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -102pt; margin-left: 109pt">
    Maintenance capital
    expenditures<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,020
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,841
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,529
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/a
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/a
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,503
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/a
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>Balance Sheet Data (at period
    end):<SUP style="font-size: 85%; vertical-align: top">(4)</SUP></B>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    252
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    392
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Trade accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,979
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,826
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,396
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,547
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Inventory
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,884
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,977
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,824
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,655
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,134
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    PPE, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,428
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,001
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85,099
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,533
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,893
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    146,774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    171,297
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    203,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    209,726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Total debt (current and long-term)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,091
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,697
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,977
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,711
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,711
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>Operating Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Tons of coal produced
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,913
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,693
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Tons of coal purchased
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    962
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    641
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    434
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    885
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Tons of coal sold
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,872
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,333
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,938
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Average sales price per
    ton<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    38.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Cost of coal sales per ton
    produced<SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Cost of purchased coal per
    ton<SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27.29
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33.66
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">On September&#160;30, 2009, we
    acquired all of the active surfacing mining operations of
    Phoenix Coal. The purchase price of this acquisition was less
    than the fair value of the net assets and liabilities we
    acquired. We recorded this difference as a gain of
    $3.8&#160;million for the year ending December&#160;31, 2009.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    69
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Adjusted EBITDA is used as a
    supplemental financial measure by management and by external
    users of our financial statements, such as investors and
    lenders, to assess:
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our financial performance without regard to financing methods,
    capital structure or income taxes;
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to generate cash sufficient to pay interest on our
    indebtedness and to make distributions to our unitholders and
    our general partner;
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our compliance with certain financial covenants applicable to
    our credit facility;&#160;and
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to fund capital expenditure projects from operating
    cash flow.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#160;
</TD>
    <TD align="left">
    Adjusted EBITDA should not be considered an alternative to net
    income (loss) attributable to our unitholders, income from
    operations, cash flows from operating activities or any other
    measure of performance presented in accordance with GAAP.
    Adjusted EBITDA excludes some, but not all, items that affect
    net income (loss) attributable to our unitholders, income from
    operations and cash flows, and these measures may vary among
    other companies. Therefore, Adjusted EBITDA as presented below
    may not be comparable to similarly titled measures of other
    companies.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents a reconciliation of Adjusted EBITDA
    to net income (loss) attributable to our unitholders for each of
    the periods indicated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="33%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oxford Resource<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Oxford Mining Company (Predecessor)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Oxford Resource Partners, LP</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Partners, LP</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>January&#160;1,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>August&#160;24,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>August&#160;23,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(unaudited) </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    &#160;<B>Reconciliation of Adjusted EBITDA to net income (loss)
    attributable to Oxford Resource Partners, LP unitholders:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,553
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,482
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    PLUS:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Depreciation, depletion and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,396
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,672
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,720
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,484
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Non-cash equity compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    LESS:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Amortization of below-market coal sales contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,955
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    Gain from purchase of business
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Adjusted EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,170
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,349
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39,016
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(3)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Maintenance capital expenditures
    are cash expenditures made to maintain or replace, including
    over the long term, our operating capacity, asset base or
    operating income. Examples of maintenance capital expenditures
    include capital expenditures associated with the replacement of
    equipment and coal reserves, whether through the expansion of an
    existing mine or the acquisition or development of new reserves,
    to the extent such expenditures are incurred to maintain our
    operating capacity, asset base or operating income.
    Historically, we have not made a distinction between maintenance
    capital expenditures and other capital expenditures. For
    purposes of this presentation, however, we have evaluated our
    historical capital expenditures to estimate which of them would
    have been classified as maintenance capital expenditures in
    accordance with our partnership agreement at the time they were
    made. The amounts shown reflect our estimates based on that
    evaluation.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(4)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">The selected financial data for the
    year ended December&#160;31, 2005 are derived from the audited
    historical consolidated balance sheet of our accounting
    predecessor and wholly owned subsidiary, Oxford Mining Company,
    that is not included in this prospectus. All other financial
    data for 2005 that would be comparable to the selected financial
    data for the years ended December&#160;31, 2006, 2007, 2008 and
    2009 is not available because we adopted new accounting
    </FONT></TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    70
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">policies in 2006 after electronic
    data for 2005 was purged to conserve limited electronic data
    resources. The manual accounting data that we retained is
    incomplete and we cannot prepare the comparable selected
    historical financial data for 2005 without unreasonable time,
    expense and delay. In addition, significant assumptions would be
    required to reclassify the operations of certain non-core
    businesses that we disposed of in 2005. These non-core
    businesses were a small percentage of our 2005 revenues. Due to
    the significant assumptions needed to reclassify discontinued
    operations, the similarity in business operations and the age of
    this information, we believe that the inclusion of this
    information would not be materially additive to an
    investor&#146;s understanding of our current business.
    </FONT></TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(5)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Represents our coal sales divided
    by total tons of coal sold.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(6)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Represents our cost of coal sales
    (excluding DD&#038;A) divided by the tons of coal we produce.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(7)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Represents the cost of purchased
    coal divided by the tons of coal purchased.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    71
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='139'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT&#146;S
    DISCUSSION AND ANALYSIS<BR>
    OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>You should read the following discussion of the financial
    condition and results of operations of Oxford Resource Partners,
    LP and its subsidiaries in conjunction with the historical
    consolidated financial statements of Oxford Resource Partners,
    LP, the historical consolidated financial statements of our
    accounting predecessor and wholly owned subsidiary, Oxford
    Mining Company, and the unaudited pro forma consolidated
    financial statements of Oxford Resource Partners, LP included
    elsewhere in this prospectus. Among other things, those
    historical and pro forma consolidated financial statements and
    the notes related to those statements include more detailed
    information regarding the basis of presentation for the
    following information.</I>
</DIV>

<A name='140'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Overview</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a low cost producer of high value steam coal, and we are
    the largest producer of surface mined coal in Ohio. Our reserves
    and operations are strategically located in Northern Appalachia
    and the Illinois Basin to serve our primary market area of
    Illinois, Indiana, Kentucky, Ohio, Pennsylvania and West
    Virginia. We market our coal primarily to large utilities with
    coal-fired, base-load scrubbed power plants under long-term coal
    sales contracts. We currently have long-term coal sales
    contracts in place for 2010, 2011, 2012 and 2013 that represent
    97.2%, 93.0%, 71.4% and 39.7%, respectively, of our 2010
    estimated coal sales of 8.5&#160;million tons.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently have 19 active surface mines that are managed as
    eight mining complexes. During the fourth quarter of 2009, our
    largest mine represented 12.5% of our coal production. This
    diversity reduces the risk that operational issues at any one
    mine will have a material impact on our business or our results
    of operations. Consistent coal quality across many of our mines
    and the mobility of our equipment fleet allows us to reliably
    serve our customers from multiple mining complexes while
    optimizing our mining plan. Our operations also include two
    river terminals, strategically located in eastern Ohio and
    western Kentucky, that further enhance our ability to supply
    coal to our customers with river access from multiple mines.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We produced 5.8&#160;million tons of coal during 2009, including
    0.4&#160;million tons produced from the reserves we acquired in
    western Kentucky from Phoenix Coal on September&#160;30, 2009.
    As a result of this acquisition, our coal production during the
    fourth quarter of 2009 was 1.8&#160;million tons, or
    7.2&#160;million tons on an annualized basis. During 2009, we
    sold 6.3&#160;million tons of coal, including 0.5&#160;million
    tons of purchased coal. We purchase coal in the open market and
    under contracts to satisfy a portion of our sales commitments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we controlled 91.6&#160;million
    tons of proven and probable coal reserves, of which
    68.6&#160;million tons were associated with our surface mining
    operations and the remaining 23.0&#160;million tons consisted of
    underground coal reserves that we have subleased to a third
    party in exchange for an overriding royalty. Historically, we
    have been successful at replacing the reserves depleted by our
    annual production and growing our reserve base by acquiring
    reserves with low operational, geologic and regulatory risks and
    that were located near our mining operations or that otherwise
    had the potential to serve our primary market area. Over the
    last five years, we have produced 23.6&#160;million tons of coal
    and acquired 52.9&#160;million tons of proven and probable coal
    reserves, including 24.6&#160;million tons of coal reserves that
    we acquired in connection with the Phoenix Coal acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2009, we generated revenues
    of approximately $293.8&#160;million, net income attributable to
    our unitholders of approximately $23.5&#160;million and Adjusted
    EBITDA of approximately $50.8&#160;million. Please read
    &#147;Selected Historical and Pro Forma Consolidated Financial
    and Operating Data&#148; for our definition of Adjusted EBITDA
    and a reconciliation of Adjusted EBITDA to net income (loss)
    attributable to our unitholders.
</DIV>

<A name='141'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Evaluating
    Our Results of Operations</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We evaluate our results of operations based on several key
    measures:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our coal production, sales volume and average sales prices,
    which drive our coal sales revenue;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    72
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our cost of coal sales;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our cost of purchased coal;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our Adjusted EBITDA, a non-GAAP financial measure.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Coal
    Production, Sales Volume and Sales Prices</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We evaluate our operations based on the volume of coal we
    produce, the volume of coal we sell and the prices we receive
    for our coal. Because we sell substantially all of our coal
    under long-term coal sales contracts, our coal production, sales
    volume and sales prices are largely dependent upon the terms of
    those contracts. The volume of coal we sell is also a function
    of the productive capacity of our mining complexes, the amount
    of coal we purchase and changes in inventory levels. Please read
    &#147;&#151;&#160;Cost of Purchased Coal&#148; for more
    information regarding our purchased coal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our long-term coal sales contracts typically provide for a fixed
    price, or a schedule of fixed prices, over the contract term.
    Two of our long-term coal sales contracts have price re-openers
    that provide for a market-based adjustment to the initial price
    every three years. These contracts will terminate if we cannot
    agree upon a market-based price with the customer. In addition,
    most of our long-term coal sales contracts have full or partial
    cost pass through or inflation adjustment provisions. Cost pass
    through provisions typically provide for increases in our sales
    prices in rising operating cost environments and for decreases
    in declining operating cost environments. Inflation adjustment
    provisions typically provide some protection in rising operating
    cost environments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We evaluate the price we receive for our coal on an average
    sales price per ton basis. Our average sales price per ton
    represents our coal sales revenue divided by total tons of coal
    sold. The following table provides operational data with respect
    to our coal production, coal sales volume and average sales
    prices per ton for the periods indicated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Non-GAAP<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Combined
    2007<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" align="center" valign="bottom">
    <B>(tons in thousands)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tons of coal produced
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,327
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tons of coal purchased
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    946
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    434
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tons of coal sold
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,271
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tons sold under long-term
    contracts<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average sales price per ton
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Please read &#147;&#151;&#160;Results of Operations&#160;&#151;
    Factors Affecting the Comparability of Our Results of
    Operations&#148; for more information about the &#147;non-GAAP
    combined 2007&#148; presentation.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Represents the percentage of the tons of coal we sold that were
    delivered under long-term coal sales contracts.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cost
    of Coal Sales</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We evaluate our cost of coal sales, which excludes the cost of
    purchased coal, on a cost per ton basis. Our cost of coal sales
    per ton produced represents our production costs divided by the
    tons of coal we produce. Our production costs include labor,
    fuel, oil, explosives, operating lease expenses, repairs and
    maintenance and all other costs that are directly related to our
    mining operations other than the cost of purchased coal, cost of
    transportation and depreciation, depletion and amortization, or
    DD&#038;A. Our production costs also exclude any indirect costs,
    such as SG&#038;A expenses. Our production costs do not take
    into account the effects of any of the inflation adjustment or
    cost pass through provisions in our long-term coal sales
    contracts, as those provisions result in an adjustment to our
    coal sales price.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    73
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table provides summary information for the dates
    indicated relating to our cost of coal sales per ton produced:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Non-GAAP<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Combined
    2007<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" align="center" valign="bottom">
    <B>(tons in thousands)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average sales price per ton
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of coal sales per ton
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tons of coal produced
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,327
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Please read &#147;&#151;&#160;Results of Operations&#160;&#151;
    Factors Affecting the Comparability of Our Results of
    Operations&#148; for more information about the &#147;non-GAAP
    combined 2007&#148; presentation.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We use a substantial amount of diesel fuel in our mining
    operations. To mitigate our exposure to fluctuations in the
    price for diesel fuel we have entered into fixed price forward
    contracts for future delivery of diesel fuel for a portion of
    our requirements. During 2009, 54.4% of the 16.7&#160;million
    gallons of diesel fuel we purchased was delivered under fixed
    price forward contracts. In addition, approximately 72.7% of the
    tons we delivered under our long-term coal sales contracts
    during 2009 were subject to full or partial cost pass through
    provisions for diesel fuel which provide additional protection
    for a portion of the increase in fuel costs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cost
    of Purchased Coal</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We purchase coal from third parties to fulfill a small portion
    of our obligations under our long-term coal sales contracts and,
    in certain cases, to meet customer quality specifications. In
    connection with the Phoenix Coal acquisition, we assumed a
    long-term coal purchase contract that had favorable pricing
    terms relative to our production costs. Under this contract we
    are obligated to purchase 0.6&#160;million tons of coal in 2010
    and 0.4&#160;million tons of coal each year thereafter until the
    coal reserves covered by the contract are depleted. Based on the
    proven and probable coal reserves in place at December&#160;31,
    2009, we expect this contract to continue beyond five years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We evaluate our cost of purchased coal on a per ton basis. For
    the year ended December&#160;31, 2009, we sold 0.5&#160;million
    tons of purchased coal. The following table provides summary
    information for the dates indicated for our cost of purchased
    coal per ton and the tons of purchased coal:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Non-GAAP<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Combined
    2007<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" align="center" valign="bottom">
    <B>(tons in thousands)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average sales price per ton
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost of purchased coal per ton
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28.51
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tons of coal purchased
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    946
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    434
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Please read &#147;&#151;&#160;Results of Operations&#160;&#151;
    Factors Affecting the Comparability of Our Results of
    Operations&#148; for more information about the &#147;non-GAAP
    combined 2007&#148; presentation.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Adjusted
    EBITDA</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adjusted EBITDA represents net income (loss) attributable to our
    unitholders before interest, taxes, DD&#038;A, gain from
    purchase of a business, amortization of below-market coal sales
    contracts and non-cash equity compensation expense. Although
    Adjusted EBITDA is not a measure of performance calculated in
    accordance with GAAP, our management believes that it is useful
    in evaluating our financial performance and our compliance with
    our existing credit facility. Because not all companies
    calculate Adjusted EBITDA identically, our calculation may not
    be comparable to similarly titled measures of other companies.
    Please read &#147;&#151;&#160;Summary&#148; for reconciliations
    of Adjusted EBITDA to net income (loss) attributable to our
    unitholders for each of the periods indicated.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    74
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='142'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Factors
    that Impact Our Business</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the past three years over 90% of our coal sales were made
    under long-term coal sales contracts and we intend to continue
    to enter into long-term coal sales contracts for substantially
    all of our annual coal production. We believe our long-term coal
    sales contracts reduce our exposure to fluctuations in the spot
    price for coal and provide us with a reliable and stable revenue
    base. Our long-term coal sales contracts also allow us to
    partially mitigate our exposure to rising costs to the extent
    those contracts have full or partial cost pass through
    provisions or inflation adjustment provisions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For 2010, 2011, 2012 and 2013, we currently have long-term coal
    sales contracts that represent 97.2%, 93.0%, 71.4% and 39.7%,
    respectively, of our 2010 estimated coal sales of
    8.5&#160;million tons. During 2010, 2011, 2012 and 2013, we have
    committed to deliver 8.2&#160;million tons, 7.9&#160;million
    tons, 6.1&#160;million tons and 3.4&#160;million tons of coal,
    respectively, under long-term coal sales contracts. These
    amounts include contracts with re-openers as described below. In
    addition, one of our long-term coal sales contracts that ends in
    2012 can be extended by the customer for two additional
    three-year terms. If this customer elects to extend this
    contract, we will be committed to deliver an additional
    2.0&#160;million tons in&#160;2013, and our 2013 coal sales
    under long-term coal sales contracts, as a percentage of 2010
    estimated coal sales, would increase to 63.3%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of our coal sales contracts result from competitive
    bidding and negotiations with customers. As a result, the terms
    of these agreements&#160;&#151; including price re-openers, coal
    quality requirements, quantity parameters, permitted sources of
    supply, effects of future regulatory changes, extension options,
    force majeure, termination and assignment provisions&#160;&#151;
    vary by customer. However, most of our long-term coal sales
    contracts have full or partial cost pass through provisions or
    inflation adjustment provisions. For 2010, 2011, 2012 and 2013,
    61%, 72%, 80% and 100% of the coal, respectively, that we have
    committed to deliver under our long-term coal sales contracts
    are subject to full or partial cost pass through or inflation
    adjustment provisions. Cost pass through provisions increase or
    decrease our coal sales price for all or a specified percentage
    of changes in the cost of fuel, explosives and, in certain
    cases, labor. Inflation adjustment provisions adjust the initial
    contract price over the term of the contract either by a
    specific percentage or a percentage determined by reference to
    various inflation related indices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Two of our long-term coal sales contracts have price re-openers
    that provide for market-based adjustments to the initial price
    every three years. These contracts will terminate if we cannot
    agree upon a market-based price with the customer. For 2011,
    2012 and 2013, 0.4&#160;million tons, 0.4&#160;million tons and
    0.6&#160;million tons of coal, respectively, that we have
    committed to deliver under our long-term coal sales contracts
    are subject to price re-opener provisions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain of our long-term coal sales contracts give the customer
    the option to elect to purchase additional tons in the future at
    a fixed price. Our long-term coal sales contracts that contain
    these option tons typically require the customer to provide us
    with six months advance notice of an election for option tons.
    For 2010, 2011 and 2012, we have outstanding option tons of
    0.7&#160;million, 1.0&#160;million and 0.7&#160;million,
    respectively. If our customers do elect to receive these option
    tons, we believe we will have the operating flexibility to meet
    these requirements through increased production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe the other key factors that influence our business
    are: (i)&#160;demand for coal, (ii)&#160;demand for electricity,
    (iii)&#160;economic conditions, (iv)&#160;the quantity and
    quality of coal available from competitors, (v)&#160;competition
    for production of electricity from non-coal sources,
    (vi)&#160;domestic air emission standards and the ability of
    coal-fired power plants to meet these standards,
    (vii)&#160;legislative, regulatory and judicial developments,
    including delays, challenges to, and difficulties in acquiring,
    maintaining or renewing necessary permits or mineral or surface
    rights, (viii)&#160;market price fluctuations for sulfur dioxide
    emission allowances and (ix)&#160;our ability to meet
    governmental financial security requirements associated with
    mining and reclamation activities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For additional information regarding some of the risks and
    uncertainties that affect our business and the industry in which
    we operate, please read &#147;Risk Factors.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    75
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='143'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recent
    Trends and Economic Factors Affecting the Coal
    Industry</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal consumption and production in the United States have been
    driven in recent periods by several market dynamics and trends.
    The recent global economic downturn has negatively impacted coal
    demand in the short-term, but long-term projections for coal
    demand remain positive. Please read &#147;The Coal
    Industry&#160;&#151; Industry Trends&#148; for the recent trends
    and economic factors affecting the coal industry.
</DIV>

<A name='144'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Results
    of Operations</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Factors
    Affecting the Comparability of Our Results of
    Operations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The comparability of our results of operations is impacted by
    (i)&#160;the Phoenix Coal acquisition, (ii)&#160;an amendment to
    a long-term coal sales contract in December 2008 and
    (iii)&#160;the application of purchase accounting to our
    accounting predecessor&#146;s financial statements in August
    2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We acquired all of Phoenix Coal&#146;s active surface mining
    operations on September&#160;30, 2009. This acquisition
    increased our coal production for the fourth quarter of 2009 by
    29%, or 0.4&#160;million tons (1.6&#160;million tons on an
    annualized basis).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2008, we and one of our major customers agreed to
    amend a long-term coal sales contract. As part of this
    amendment, we agreed to give this customer two additional
    three-year term extension options with market-based price
    adjustments for each extension. In exchange, we received a
    substantial increase in the price per ton of coal under the
    contract along with inflation adjusters and certain cost pass
    through provisions for the remainder of the contract term that
    expires at the end of 2012. The 14.9% increase in our average
    sales price per ton in 2009 as compared to 2008 is primarily due
    to the amendment of this contract.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Oxford Mining Company, our wholly owned subsidiary, was
    contributed to us on August&#160;24, 2007. Because Oxford Mining
    Company is our accounting predecessor, the financial statements
    we have presented for the periods that ended before
    August&#160;24, 2007 are the financial statements of Oxford
    Mining Company. In addition, because Oxford Mining Company is
    now our wholly owned subsidiary, our financial statements that
    begin on or after August&#160;24, 2007 include Oxford Mining
    Company on a consolidated basis, as required by GAAP. The
    contribution of Oxford Mining Company to us on August&#160;24,
    2007 resulted in a change of control that triggered a new
    fair-value basis of accounting for Oxford Mining Company on that
    date. We have analyzed the impact of that transaction on our
    consolidated statements of operations and those of our
    accounting predecessor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The operations of the predecessor and successor in 2007 were
    substantially the same as all assets and liabilities were
    contributed with the exception of the predecessor&#146;s debt,
    which was paid in full, and certain equipment operating leases,
    which were paid off. Therefore, the change in control had a
    limited impact on the comparability of our 2007 results of
    operations. The most notable changes that resulted from the
    change in control are set forth below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    As part of the contribution, we bought out several equipment
    operating leases, which had the impact of reducing lease expense
    within cost of coal sales and increasing depreciation expense
    during the periods after the change in control.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The fair value basis of accounting had the effect of increasing
    the asset value of certain property, plant and equipment as well
    as coal reserves, which further increased DD&#038;A expenses
    during the periods after the change in control.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    In connection with the contribution, Oxford Mining Company
    entered into an advisory services agreement with certain
    affiliates of AIM Oxford, which resulted in higher SG&#038;A
    expenses during the periods after the change in control.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    As a result of the contribution, total borrowings increased,
    which resulted in higher interest charges and amortization of
    deferred financing fees within interest expense during the
    periods after the change in control.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    76
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    As part of the accounting for the contribution, we established a
    provision for below-market coal sales contracts, which increased
    our revenues during the periods after the change in control.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on our analysis, we concluded that the non-GAAP combined
    presentation provides for a more meaningful comparison of our
    2007 results of operations to other periods. For comparative
    purposes, Oxford Mining Company&#146;s operating results for the
    period from January&#160;1, 2007 to August&#160;23, 2007 and our
    operating results for the period from August&#160;24, 2007 to
    December&#160;31, 2007 have been combined and are referred to as
    &#147;non-GAAP combined 2007.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Summary</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents certain of our historical
    consolidated financial data and that of our accounting
    predecessor, Oxford Mining Company, for the periods indicated.
    The following table should be read in conjunction with
    &#147;Selected Historical and Pro Forma Consolidated Financial
    and Operating Data.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adjusted EBITDA is a non-GAAP financial measure that we use in
    analyzing the financial performance of our business as it is an
    important supplemental measure of our performance. Adjusted
    EBITDA represents net income (loss) attributable to our
    unitholders before interest, taxes, DD&#038;A, gain from
    purchase of a business, amortization of below-market coal sales
    contracts and non-cash equity compensation expense. This measure
    is not calculated or presented in accordance with GAAP. We
    explain this measure below and reconcile it to net income (loss)
    attributable to our unitholders, its most comparable measure
    established in accordance with GAAP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    77
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oxford Mining<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Company<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Predecessor)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Oxford Resource Partners, LP</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-GAAP<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>January&#160;1, 2007 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>August&#160;24, 2007 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Combined 2007<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December 31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December 31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>August&#160;23, 2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="19" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Statement of Operations Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Revenues:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Coal sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    96,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    61,324
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    158,123
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    193,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    254,171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Transportation revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Royalty and non-coal revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,267
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,674
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Total revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,935
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    191,084
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    230,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    293,844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Costs and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Cost of coal sales (excluding DD&#038;A, shown separately)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,415
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,721
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,136
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151,421
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Cost of purchased coal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,494
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,962
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,925
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,487
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Cost of transportation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Depreciation, depletion, and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,757
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,242
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total costs and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    186,093
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    222,422
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Income from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (511
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,502
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,991
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,386
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,498
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,884
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,720
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,484
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Gain from purchase of
    business<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,871
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (812
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Net income attributable to noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (682
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (537
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,219
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,891
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,895
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,553
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,031
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,482
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Other Financial Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Adjusted
    EBITDA<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,977
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,349
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">On September&#160;30, 2009, we
    acquired all of the active western Kentucky surface mining
    operations of Phoenix Coal. The purchase price of this
    acquisition was less than the fair value of the net assets and
    liabilities we acquired. We recorded this difference as a gain
    of $3.8&#160;million for the year ending December&#160;31, 2009.
    </FONT></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Adjusted EBITDA is used as a
    supplemental financial measure by management and by external
    users of our financial statements, such as investors and
    lenders, to assess:
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <FONT style="font-size: 9pt">our financial performance without
    regard to financing methods, capital structure or income taxes;
    </FONT>
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <FONT style="font-size: 9pt">our ability to generate cash
    sufficient to pay interest on our indebtedness and to make
    distributions to our unitholders and our general partner;
    </FONT>
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <FONT style="font-size: 9pt">our compliance with certain
    financial covenants included in our existing credit facility; and
    </FONT>
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <FONT style="font-size: 9pt">our ability to fund capital
    expenditure projects from operating cash flow.
    </FONT>
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    78
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 3%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adjusted EBITDA should not be considered an alternative to net
    income (loss) attributable to our unitholders, income from
    operations, cash flows from operating activities or any other
    measure of performance presented in accordance with GAAP.
    Adjusted EBITDA excludes some, but not all, items that affect
    net income (loss) attributable to our unitholders, income from
    operations and cash flows, and these measures may vary among
    other companies. Therefore, Adjusted EBITDA as presented below
    may not be comparable to similarly titled measures of other
    companies. The following table presents a reconciliation of
    Adjusted EBITDA to net income (loss) attributable to our
    unitholders for each of the periods indicated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oxford Mining<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Company<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Predecessor)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Oxford Resource Partners, LP</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>January&#160;1, 2007<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-GAAP<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>to August&#160;23,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>August&#160;24, 2007 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Combined<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="19" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Reconciliation of Adjusted EBITDA to net income (loss)
    attributable to Oxford Resource Partners, LP unitholders:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,553
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,031
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,482
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    PLUS:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Depreciation, depletion, and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,884
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,720
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,484
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Non-cash equity compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    LESS:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Amortization of below-market coal sales contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,955
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 18pt">
    Gain from purchase of business
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Adjusted EBITDA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,977
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,349
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Year
    Ended December&#160;31, 2009 Compared to Year Ended
    December&#160;31, 2008</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Overview.</I>&#160;&#160;Our coal production increased 14.9%
    to 5.8&#160;million tons in 2009 compared to 5.1&#160;million
    tons in 2008. We sold 6.3&#160;million tons of coal in 2009, an
    increase of 14.2% when compared to the 5.5&#160;million tons we
    sold in 2008. Our average sales price per ton increased 14.9%,
    or $5.23 per ton, in 2009 when compared with 2008. Our total
    revenues for 2009 increased 27.5% to $293.8&#160;million from
    $230.5&#160;million in 2008. We generated net income
    attributable to our unitholders of approximately
    $23.5&#160;million during 2009 as compared to net loss
    attributable to our unitholders of $2.5&#160;million for 2008.
    Our Adjusted EBITDA increased 149.6% in 2009 to
    $50.8&#160;million from $20.3&#160;million in 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coal Production.</I>&#160;&#160;Our tons of coal produced
    increased 14.9% to 5.8&#160;million tons in 2009 from
    5.1&#160;million tons in 2008. This increase was primarily the
    result of increased coal production in the fourth quarter of
    2009 due to the Phoenix Coal acquisition of 0.4&#160;million
    tons and higher production at certain of our other mining
    complexes. We increased our coal production for 2009 to match
    the increase in the tons that we were committed to deliver under
    our long-term coal sales contracts during 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sales Volume.</I>&#160;&#160;Our tons of coal sold increased
    14.2% to 6.3&#160;million tons in 2009 from 5.5&#160;million
    tons in 2008. The increase in the tons sold in 2009 was
    primarily attributable to the 0.6 million tons of coal we sold
    during the fourth quarter of 2009 as a result of the Phoenix
    Coal acquisition and an increase in the tons we were committed
    to deliver under our long-term coal sales contracts in 2009 as
    compared with 2008.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    79
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Average Sales Price Per Ton.</I>&#160;&#160;Our average sales
    price per ton increased 14.9% to $40.27 in 2009 from $35.04 in
    2008. This increase was primarily attributable to the amendment
    of a long-term coal sales contract with a major customer in
    December 2008. As part of this amendment, we agreed to give this
    customer two additional three-year term extension options with
    market-based price adjustments for each extension. In exchange,
    we received a substantial increase in the price per ton under
    the contract along with inflation adjusters and certain cost
    pass through provisions through the remainder of the contract
    term that expires at the end of 2012.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coal Sales Revenue.</I>&#160;&#160;Our coal sales for 2009
    increased by $60.5&#160;million, or 31.2%, over 2008. The
    majority of the increase, or $33.5&#160;million, was
    attributable to the 14.9% increase in our average sales price
    per ton for 2009 as compared to 2008. In addition,
    $26.9&#160;million of this increase was attributable to the
    14.2% increase in our tons sold for 2009 as compared to 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Royalty and Non-Coal Revenue.</I>&#160;&#160;In June 2005, we
    sold our underground mining operations at the Tusky mining
    complex and subleased our related underground coal reserves to
    the purchaser in exchange for an overriding royalty. Our
    overriding royalty is equal to a percentage of the sales price
    our sublessee receives for the coal produced from our
    underground coal reserves. Our sublessee is also obligated to
    pay the tonnage based royalty that we owe to the lessor of our
    underground coal reserves. Our royalty and non-coal revenue
    includes our overriding royalty revenue, revenue from the sale
    of limestone that we recover in connection with our coal mining
    operations and various fees we receive for performing services
    for others. Our royalty and non-coal revenue increased to
    $7.2&#160;million in 2009 from $5.0&#160;million in 2008. This
    increase was primarily attributable to increases in our royalty
    revenue from our underground coal reserves of $3.2 million
    partially offset by decreases in other revenue of $1.0 million.
    During 2009, our royalty revenue from our underground coal
    reserves increased to $4.5&#160;million from $1.3&#160;million
    in 2008. This increase was attributable to significant increases
    in coal production and sales to third parties by the sublessee
    of our underground coal reserves. In 2009, our sublessee sold
    its underground coal production to third parties for the full
    year as compared to 2008 when it sold its production to third
    parties for approximately six months.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of Coal Sales (Excluding DD&#038;A).</I>&#160;&#160;Cost
    of coal sales (excluding DD&#038;A) increased 12.7% in 2009 to
    $170.7&#160;million from $151.4&#160;million in 2008. This
    increase was primarily attributable to the increase in our tons
    of coal produced, partially offset by lower operating costs per
    ton. During 2009, our cost of coal sales per ton produced
    decreased 1.9% primarily as a result of lower fuel, oil and
    explosives prices partially offset by higher operating lease
    expenses and higher contract labor costs. Our diesel fuel cost
    per ton of coal produced decreased from $8.47 per ton in 2008 to
    $6.56 per ton in 2009. Our motor and hydraulic oil cost per ton
    decreased from $1.17 per ton in 2008 to $0.85 per ton in 2009,
    and our explosives cost per ton decreased from $3.44 per ton in
    2008 to $3.24 per ton in 2009. Our operating lease expenses per
    ton increased to $0.79 per ton in 2009 from $0.31 per ton in
    2008 as we expanded our fleet of large equipment at our Cadiz
    and Harrison mining complexes. In addition, our contract labor
    costs per ton increased to $1.44 per ton in 2009 from $0.62 per
    ton in 2008 as a result of a full year of the costs associated
    with a highwall mining contractor that we retained in July 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of Purchased Coal.</I>&#160;&#160;Cost of purchased coal
    increased 50.8% in 2009 to $19.5&#160;million from
    $12.9&#160;million in 2008. This increase was primarily
    attributable to a $6.98 per ton increase in the average cost of
    purchased coal per ton and a 0.1&#160;million ton increase in
    the volume of coal purchased during 2009 as compared to 2008.
    Our average cost of purchased coal per ton increased by 23.4% to
    $36.79 per ton in 2009 from $29.81 per ton in 2008. During the
    first quarter of 2009, we purchased a higher percentage of our
    purchased coal on the spot market in order to meet our coal
    sales obligations. For the fourth quarter of 2009, we purchased
    a higher percentage of our purchased coal under a long-term coal
    purchase contract. During 2009 the volume of coal we purchased
    increased by 0.1&#160;million tons over 2008 primarily as a
    result of one quarter of coal purchases under the long-term coal
    purchase contract that we assumed in connection with the Phoenix
    Coal acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Depreciation, Depletion and
    Amortization.</I>&#160;&#160;DD&#038;A expense for 2009 was
    $25.9&#160;million as compared to $16.7&#160;million for 2008,
    an increase of $9.2&#160;million. Depreciation expense
    attributable to equipment upgrades that occurred during 2009
    accounted for $7.6&#160;million of this increase and the assets
    we acquired in the Phoenix Coal acquisition increased our
    depreciation expense by $1.8&#160;million.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    80
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selling, General and Administrative
    Expenses.</I>&#160;&#160;SG&#038;A expenses for 2009 were
    $13.2&#160;million as compared to $9.6&#160;million for 2008, an
    increase of $3.6&#160;million. The increase in SG&#038;A
    expenses was primarily due to increased headcount and expenses
    in our accounting and administrative departments in anticipation
    of becoming a publicly traded partnership, as well as one-time
    costs of $1.6&#160;million associated with the Phoenix Coal
    transaction and $1.0&#160;million of legal fees incurred in
    renegotiating our existing credit facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Transportation Revenue and Expenses.</I>&#160;&#160;Our
    transportation expenses represent the cost to transport our coal
    by truck or rail from our mines to our river terminals, our rail
    loading facilities and our customers. Our long-term coal sales
    contracts have these transportation costs built into the price
    of our coal. Our transportation revenue reflects the portion of
    our total revenues that is attributable to reimbursements for
    transportation expenses. Our transportation revenue fluctuates
    based on a number of factors, including the volume of coal we
    transport by truck or rail under those contracts and the related
    transportation costs. The 2.0% increase in transportation
    revenue in 2009 as compared to 2008 was a function of the
    increase in tons of coal sold partially offset by lower trucking
    rates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest Expense.</I>&#160;&#160;Interest expense for 2009
    was $6.5&#160;million as compared to $7.7&#160;million for 2008,
    a decrease of $1.2&#160;million or 16.0%. The decrease in
    interest expense was primarily attributable to lower effective
    weighted average interest rates in 2009 under our existing
    credit facility as compared to 2008 and a gain of
    $1.7&#160;million on our interest rate swap in 2009. These
    decreases were partially offset by an increase of
    $1.3&#160;million in interest expense due to the write off of
    capitalized financing costs as a result of an amendment in 2009
    to our existing credit facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Gain from Purchase of Business.</I>&#160;&#160;On
    September&#160;30, 2009, we acquired all of the active surface
    mining operations of Phoenix Coal. The purchase price of this
    acquisition was less than the fair value of the net assets and
    liabilities we acquired. We recorded this difference as a
    one-time gain of $3.8&#160;million for 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Net Income Attributable to Noncontrolling
    Interest.</I>&#160;&#160;In 2007, we entered into a joint
    venture, Harrison Resources, with CONSOL Energy to mine surface
    coal reserves purchased from CONSOL Energy. We own 51% of
    Harrison Resources and CONSOL Energy owns the remaining 49%
    indirectly through one of its subsidiaries. We manage all of the
    operations of, and perform all of the contract mining and
    marketing services for, Harrison Resources. Net income
    attributable to noncontrolling interest relates to the 49% of
    Harrison Resources that we do not own. For the year ended
    December&#160;31, 2009, net income attributable to the
    noncontrolling interest was $5.9&#160;million as compared to
    $2.9&#160;million for 2008. This increase of $3.0&#160;million
    was primarily attributable to an increase of 64% in tons of coal
    sold by Harrison Resources in 2009 compared to 2008, as well as
    to increased sales prices.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Year
    Ended December&#160;31, 2008 Compared to Non-GAAP&#160;Combined
    2007</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Overview.</I>&#160;&#160;Our coal production increased 17.6%
    to 5.1&#160;million tons in 2008 compared to 4.3&#160;million
    tons in non-GAAP combined 2007. We sold 5.5&#160;million tons of
    coal in 2008, an increase of 4.9% when compared to the
    5.3&#160;million tons we sold in non-GAAP combined 2007. Our
    average sales price per ton increased 16.8%, or $5.04 per ton,
    in 2008 when compared with non-GAAP combined 2007. Our total
    revenues for 2008 increased 20.6% to $230.5&#160;million from
    $191.1&#160;million in non-GAAP combined 2007. We had a net loss
    attributable to our unitholders of approximately
    $2.5&#160;million during 2008 as compared to a net loss
    attributable to our unitholders of $2.0&#160;million for
    non-GAAP combined 2007. Our Adjusted EBITDA increased 19.9% in
    2008 to $20.3&#160;million from $17.0&#160;million in non-GAAP
    combined 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coal Production.</I>&#160;&#160;Our tons of coal produced
    increased 17.6% to 5.1&#160;million tons in 2008 from
    4.3&#160;million tons in non-GAAP combined 2007. This increase
    was primarily due to higher production in 2008 from reserves
    acquired during non-GAAP combined 2007 at our Belmont and Cadiz
    mining complexes and the additional reserves acquired by
    Harrison Resources from CONSOL during 2008. We increased our
    production in 2008 to meet the requirements of a new long-term
    coal sales contract which started in 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sales Volume.</I>&#160;&#160;Our tons of coal sold increased
    4.9% to 5.5&#160;million tons in 2008 from 5.3&#160;million tons
    in non-GAAP combined 2007 primarily as a result of an increase
    of 0.8 million tons in coal production partially offset by a
    decrease of 0.5 million tons in purchased coal.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    81
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Average Sales Price Per Ton.</I>&#160;&#160;Our average sales
    price per ton increased 16.8% to $35.04 in 2008 from $30.00 in
    non-GAAP combined 2007. This increase was due to the replacement
    of expiring long-term coal sales contracts with higher priced
    long-term coal sales contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coal Sales Revenue.</I>&#160;&#160;Our coal sales for 2008
    increased by $35.6&#160;million, or 22.5%, over non-GAAP
    combined 2007. The majority of the increase, or
    $27.9&#160;million, was attributable to the 16.8% increase in
    our average sales price per ton for 2008 as compared to non-GAAP
    combined 2007. In addition, $7.7&#160;million of this increase
    was attributable to the 4.9% increase in our tons of coal sold
    for 2008 as compared to non-GAAP combined 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Royalty and Non-Coal Revenue.</I>&#160;&#160;We began
    receiving royalty revenues on our underground coal reserves in
    June 2008 as the sublessee began selling coal produced from our
    underground coal reserves directly to third parties. Before June
    2008 we purchased, processed and sold all of the coal produced
    by our sublessee from our underground coal reserves and, as a
    result, we did not receive an overriding royalty.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of Coal Sales (Excluding DD&#038;A).</I>&#160;&#160;Cost
    of coal sales (excluding DD&#038;A) increased 36.2% in 2008 to
    $151.4&#160;million from $111.1&#160;million in non-GAAP
    combined 2007. This increase was primarily attributable to the
    increase in our tons of coal produced and higher operating
    costs. During 2008, our cost of coal sales per ton produced
    increased 15.8% primarily as a result of higher fuel costs as
    compared to non-GAAP combined 2007. Our diesel fuel cost per ton
    of coal produced increased to $8.47 per ton in 2008 from $6.33
    per ton in non-GAAP combined 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cost of Purchased Coal.</I>&#160;&#160;Cost of purchased coal
    decreased 52.1% in 2008 to $12.9&#160;million from
    $27.0&#160;million in non-GAAP combined 2007. This decrease was
    primarily attributable to a 0.5 million ton decrease in the
    volume of coal we purchased during 2008 as compared to non-GAAP
    combined 2007 partially offset by the $1.30 increase in the
    average cost of purchased coal per ton in 2008 as compared to
    non-GAAP combined 2007. The decrease in the volume of purchased
    coal was primarily due to the discontinuation of coal purchases
    from the sublessee of our underground coal reserves in June
    2008. Our average cost of purchased coal per ton increased by
    4.3% to $29.81 per ton in 2008 from $28.51 per ton in non-GAAP
    combined 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Depreciation, Depletion and
    Amortization.</I>&#160;&#160;DD&#038;A expense for 2008 was
    $16.7&#160;million as compared to $14.0&#160;million for
    non-GAAP combined 2007, an increase of $2.7&#160;million. This
    increase was primarily the result of a full year of depreciation
    on the higher asset values that resulted from the new asset
    basis for Oxford Mining Company due to the change of control
    that occurred on August&#160;24, 2007. Because a new asset basis
    can inhibit meaningful comparison of historical results before
    and after the change of control, DD&#038;A expense for non-GAAP
    combined 2007 is not comparable to 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Selling, General and Administrative
    Expenses.</I>&#160;&#160;SG&#038;A expenses for 2008 were
    $9.6&#160;million as compared to $5.8&#160;million for non-GAAP
    combined 2007, an increase of $3.8&#160;million. The increase in
    SG&#038;A expenses was primarily due to increases in accounting
    and administrative personnel expenses of $1.3&#160;million,
    increases in professional fees of $1.5&#160;million and the
    one-time write off of costs associated with an acquisition that
    we did not complete of $0.4&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Transportation Revenue and Expenses.</I>&#160;&#160;The 12.6%
    increase in transportation revenue in 2008 as compared to
    non-GAAP combined 2007 was a function of the increase in tons of
    coal sold and higher trucking costs due to increased fuel prices
    in 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interest Expense.</I>&#160;&#160;Interest expense for 2008
    was $7.7&#160;million as compared to $5.9&#160;million for
    non-GAAP combined 2007, an increase of $1.8&#160;million. This
    increase was primarily attributable to an increase in our
    weighted average interest rates and average outstanding balances
    under our existing credit facility during 2008 as compared to
    non-GAAP combined 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Net Income Attributable to Noncontrolling
    Interest.</I>&#160;&#160;Net income attributable to the
    noncontrolling interest was $2.9&#160;million for 2009 as
    compared to $1.2&#160;million for non-GAAP combined 2007. This
    increase of $1.7&#160;million was primarily attributable to an
    increase of 97% in tons sold by Harrison Resources in 2008
    compared to non-GAAP combined 2007 as well as increases in
    average sales prices.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    82
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='145'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidity
    and Capital Resources</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Liquidity</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business is capital intensive and requires substantial
    capital expenditures for purchasing, upgrading and maintaining
    equipment used in mining our reserves, as well as complying with
    applicable environmental laws and regulations. Our principal
    liquidity requirements are to finance current operations, fund
    capital expenditures, including acquisitions from time to time,
    service our debt and pay cash distributions to our unitholders.
    Our primary sources of liquidity to meet these needs have been
    cash generated by our operations, borrowings under our existing
    credit facility and contributions from our partners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The principal indicators of our liquidity are our cash on hand
    and availability under our existing credit facility. As of
    December&#160;31, 2009, our available liquidity was
    $10.7&#160;million, including cash on hand of $3.4&#160;million
    and $7.3&#160;million available under our existing credit
    facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that our expected sources of liquidity after this
    offering, which include our working capital, cash flows from
    operations, borrowing capacity under our new credit facility and
    future issuances of debt and equity securities, will be
    sufficient to meet our financial commitments, debt service
    obligations, contingencies and anticipated capital expenditures
    for the near term. However, we are subject to business and
    operational risks that could adversely affect our cash flows. A
    material decrease in our cash flows would likely produce a
    corollary adverse effect on our borrowing capacity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please read &#147;&#151;&#160;Capital Expenditures&#148; for a
    further discussion on the impact of capital expenditures on
    liquidity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cash
    Flows</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table reflects cash flows for the applicable
    periods:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="41%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="9%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Oxford Mining Company<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Predecessor)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Oxford Resource Partners, LP</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>January&#160;1, 2007 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>August&#160;24, 2007 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>August&#160;23, 2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2007(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net cash provided by (used in):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (8,478
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (16,619
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (103,336
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (23,901
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (51,115
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (234
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    111,274
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,494
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 3pt; margin-left: 0%; width: 18%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Please read Note&#160;1 to our
    historical consolidated financial statements included elsewhere
    in this prospectus.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Year Ended December&#160;31, 2009 Compared to Year Ended
    December&#160;31, 2008.</I>&#160;&#160;Net cash provided by
    operating activities was $35.5&#160;million for 2009 as compared
    to $34.0&#160;million for 2008. This $1.5&#160;million increase
    was primarily due to the combined effects of the
    $26.0&#160;million increase in net income (loss) attributable to
    our unitholders, the $9.2&#160;million impact from the increase
    in DD&#038;A expense, as well as higher other non-cash
    adjustments of $1.2&#160;million, partially offset by a decrease
    in the cash provided by changes in assets and liabilities of
    $34.9&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash used in investing activities was $51.1&#160;million in
    2009 as compared to $23.9&#160;million for 2008. This
    $27.2&#160;million increase was primarily attributable to the
    $18.3&#160;million we spent in connection with the Phoenix Coal
    acquisition as well as increased purchases of coal properties in
    2009 as compared to 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Net cash provided by financing activities was $3.8&#160;million
    for 2009 as compared to $4.5&#160;million for 2008. This
    $0.7&#160;million decrease was primarily attributable to
    increased distributions to the noncontrolling interest holder in
    Harrison Resources during 2009 compared to 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Year Ended December&#160;31, 2008 Compared to
    Non-GAAP&#160;Combined 2007.</I>&#160;&#160;Net cash provided by
    operating activities was $34.0&#160;million for 2008 as compared
    to $9.2&#160;million for non-GAAP combined 2007.
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    83
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This $24.8&#160;million change was primarily due to a
    $22.1&#160;million increase in cash provided by changes in
    assets and liabilities and an increase of $2.7&#160;million
    associated with higher DD&#038;A expense.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our net cash provided by (used in) investing activities and
    financing activities for 2007 includes the impact of the
    transactions relating to the contribution of Oxford Mining
    Company to us in August 2007. Please read
    &#147;&#151;&#160;Results of Operations&#160;&#151; Factors
    Affecting the Comparability of our Results of Operations,&#148;
    and Note&#160;1 to our historical consolidated financial
    statements included elsewhere in this prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Credit
    Facility</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with our initial public offering, we will pay off
    our existing credit facility and enter into a new credit
    facility that will include (i)&#160;a
    $&#160;&#160;&#160;&#160;&#160;&#160;million revolver and
    (ii)&#160;a $&#160;&#160;&#160;&#160;&#160;&#160;million term
    loan. The revolver and term loan will mature
    in&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; ,
    and borrowings will bear interest, at a variable rate per annum
    equal to the lesser of LIBOR or the Base Rate, as the case may
    be, plus the Applicable Margin (LIBOR, Base Rate and Applicable
    Margin will each be defined in the credit agreement that
    evidences our new credit facility). Under our new credit
    facility, in addition to the uses described in &#147;Use of
    Proceeds,&#148; we expect that borrowings may be used for
    (i)&#160;the refinancing and repayment of certain existing
    indebtedness, (ii)&#160;working capital and other general
    partnership purposes and (iii)&#160;capital expenditures.
    Borrowings under our new credit facility will be secured by a
    first-priority lien on and security interest in substantially
    all of our assets. The credit agreement that evidences our new
    credit facility will contain customary covenants, including
    restrictions on our ability to incur additional indebtedness,
    make certain investments, loans or advances, make distributions
    to our unitholders, make dispositions or enter into sales and
    leasebacks, or enter into a merger or sale of our property or
    assets, including the sale or transfer of interests in our
    subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The events that constitute an Event of Default under our new
    credit agreement are expected to be customary for loans of this
    size and type.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Contractual
    Obligations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have contractual obligations that are required to be settled
    in cash. The amounts of our contractual obligations as of
    December&#160;31, 2009 were as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Payments due by period</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Less Than <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>More Than<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>1&#160;Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>1-3&#160;Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>4-5&#160;Years</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>5&#160;Years</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term debt
    obligations<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    105,507
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,591
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    99,916
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other long-term
    debt<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,435
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,642
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,783
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,425
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,289
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,013
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    123
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fixed price diesel fuel purchase contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term coal purchase
    contract<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,627
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,103
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,796
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    222,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39,071
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    143,508
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,997
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Amounts relate to our existing
    credit facility that will be repaid in full in connection with
    this offering. Please read &#147;Use of Proceeds.&#148; Assumes
    a current LIBOR of 1.0% plus the applicable margin, which
    remains constant for all periods.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Represents various notes payable
    with interest rates ranging from 4.6% to 9.25%.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt"><SUP style="font-size: 85%; vertical-align: top">(3)</SUP></FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">We assumed a long-term coal
    purchase contract as a result of the Phoenix Coal acquisition.
    Please read Note&#160;17 to our historical financial statements
    included elsewhere in this prospectus.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Capital
    Expenditures</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our mining operations require investments to expand, upgrade or
    enhance existing operations and to comply with environmental
    regulations. Our capital requirements primarily consist of
    maintenance capital expenditures and expansion capital
    expenditures. Maintenance capital expenditures are those capital
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    84
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    expenditures required to maintain or replace, including over the
    long term, our operating capacity, asset base or operating
    income. Expansion capital expenditures are those capital
    expenditures made to increase our
    <FONT style="white-space: nowrap">long-term</FONT>
    operating capacity, asset base or operating income. Examples of
    maintenance capital expenditures include the replacement of
    equipment and coal reserves, whether through the expansion of an
    existing mine or the acquisition (by lease or otherwise) of new
    reserves, to the extent such expenditures are incurred to
    maintain or replace our operating capacity, asset base or
    operating income. Examples of expansion capital expenditures
    include the acquisition (by lease or otherwise) of reserves,
    equipment or a new mine or the expansion of an existing mine, to
    the extent such expenditures are incurred to increase our
    long-term operating capacity, asset base or operating income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ending December&#160;31, 2010, we have budgeted
    $32.8&#160;million in maintenance capital expenditures. We
    expect to fund maintenance capital expenditures primarily from
    cash generated by our operations. To the extent we incur
    expansion capital expenditures, we expect to fund those
    expenditures with the proceeds of borrowings under our new
    credit facility, issuance of debt and equity securities or other
    external sources of financings.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Off-Balance
    Sheet Arrangements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the normal course of business, we are a party to certain
    off-balance sheet arrangements. These arrangements include
    guarantees and financial instruments with off-balance sheet
    risk, such as bank letters of credit, surety bonds, performance
    bonds and road bonds. No liabilities related to these
    arrangements are reflected in our consolidated balance sheet,
    and we do not expect any material adverse effects on our
    financial condition, results of operations or cash flows to
    result from these off-balance sheet arrangements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Federal and state laws require us to secure certain long-term
    obligations such as mine closure and reclamation costs and other
    obligations. We typically secure these obligations by using
    surety bonds, an off-balance sheet instrument. The use of surety
    bonds is less expensive for us than the alternative of posting a
    100% cash bond and we typically use bank letters of credit to
    secure our surety bonding obligations. To the extent that surety
    bonds become unavailable, we would seek to secure our
    reclamation obligations with letters of credit, cash deposits or
    other suitable forms of collateral. We also post performance
    bonds to secure our performance of various contractual
    obligations and road bonds to secure our obligations to repair
    local roads.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we had approximately
    $31.3&#160;million in surety bonds outstanding to secure the
    performance of our reclamation obligations, which were supported
    by approximately $6.9&#160;million in letters of credit. As of
    December&#160;31, 2009, we had approximately $12.3&#160;million
    of performance bonds outstanding and $0.6&#160;million of road
    bonds outstanding, none of which were secured by letters of
    credit.
</DIV>

<A name='146'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Critical
    Accounting Policies and Estimates</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our preparation of financial statements in conformity with GAAP
    requires that we make estimates and assumptions that affect the
    amounts reported in the consolidated financial statements and
    accompanying notes. We base our judgments, estimates and
    assumptions on historical information and other known factors
    that we deem relevant. Estimates are inherently subjective as
    significant management judgment is required regarding the
    assumptions utilized to calculate accounting estimates. The most
    significant areas requiring the use of management estimates and
    assumptions relate to
    <FONT style="white-space: nowrap">units-of-production</FONT>
    amortization calculations, asset retirement obligations, useful
    lives for depreciation of fixed assets and estimates of fair
    values for asset impairment purposes. Our significant accounting
    policies are more fully described in Note&#160;2 to our
    historical consolidated financial statements included elsewhere
    in this prospectus. This section describes those accounting
    policies and estimates that we believe are critical to
    understanding our historical consolidated financial statements
    and that we believe will be critical to understanding our
    consolidated financial statements subsequent to this offering.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Inventory</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Inventory consists of coal that has been completely uncovered or
    that has been removed from the pit and stockpiled for crushing,
    washing or shipment to customers. Inventory also consists of
    supplies, primarily spare
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    85
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    parts and fuel. Inventory is valued at the lower of average cost
    or market. The cost of coal inventory includes labor, equipment
    operating expenses and certain transportation and operating
    overhead.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Property,
    Plant and Equipment</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property, plant and equipment are recorded at cost. Expenditures
    that extend the useful lives of existing plant and equipment are
    capitalized. Maintenance and repairs that do not extend the
    useful life or increase productivity are charged to operating
    expense as incurred. Exploration expenditures are charged to
    operating expense as incurred, including costs related to
    locating coal deposits and drilling and evaluation costs
    incurred to assess the economic viability of such deposits.
    Plant and equipment are depreciated principally on the
    straight-line method over the estimated useful lives of the
    assets based on the following schedule:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="84%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Buildings and tipple
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    25&#160;&#151;&#160;39&#160;years
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Machinery and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    7&#160;&#151;&#160;12&#160;years
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vehicles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    5&#160;&#151;&#160;7&#160;years
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture and fixtures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    3&#160;&#151;&#160;7&#160;years
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Railroad siding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    7&#160;years
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We acquire our reserves through purchases or leases of coal
    reserves. Coal reserves are recorded at fair value under
    purchase accounting at our formation date of August&#160;24,
    2007, or as part of the Phoenix Coal acquisition. We deplete our
    reserves using the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    method, without residual value, on the basis of tonnage mined in
    relation to estimated recoverable tonnage. At December&#160;31,
    2009 and 2008, all of our reserves were attributed to mine
    complexes engaged in mining operations or leased to third
    parties. We believe that the carrying value of these reserves
    will be recovered. Residual surface values are classified as
    land and not depleted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Exploration expenditures are charged to operating expense as
    incurred, including costs related to locating coal deposits and
    drilling and evaluation costs incurred to assess the economic
    viability of such deposits. Once the economic viability of such
    deposits is established, future expenditures are classified as
    mine development costs and are capitalized until production
    commences. Amortization of these mine development costs is
    initiated when the mine begins production using the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    method based upon the estimated recoverable tonnage.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Advance
    Royalties</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A substantial portion of our reserves are leased. Advance
    royalties are advance payments made to lessors under terms of
    mineral lease agreements that are recoupable through a reduction
    in royalties payable on future production. Amortization of
    leased coal interests is computed using the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    method over estimated recoverable tonnage.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Long-Lived
    Assets</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We follow authoritative guidance that requires projected future
    cash flows from use and disposition of assets to be compared
    with the carrying amounts of those assets when impairment
    indicators are present. When the sum of projected cash flows is
    less than the carrying amount, impairment losses are indicated.
    If the fair value of the assets is less than the carrying amount
    of the assets, an impairment loss is recognized. In determining
    such impairment losses, discounted cash flows or asset
    appraisals are utilized to determine the fair value of the
    assets being evaluated. Also, in certain situations, expected
    mine lives are shortened because of changes to planned
    operations. When that occurs and it is determined that the
    mine&#146;s underlying costs are not recoverable in the future,
    reclamation and mine closure obligations are accelerated. To the
    extent it is determined that an asset&#146;s carrying value will
    not be recoverable during a shorter mine life, the asset is
    written down to its recoverable value. No impairment triggers
    occurred and therefore no impairment losses were recognized
    during any of the years or periods presented.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    86
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Identifiable
    Intangible Assets</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Identifiable intangible assets are recorded in other assets in
    the accompanying consolidated balance sheets. We capitalize
    costs incurred in connection with borrowings or the
    establishment of credit facilities. These costs are amortized as
    an adjustment to interest expense over the life of the borrowing
    or term of the credit facility using the interest method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also have recorded intangible assets and liabilities at fair
    value associated with certain customer relationships and
    below-market coal sales contracts, respectively. These balances
    arose from the use of purchase accounting for business
    combinations and so the assets and liabilities were adjusted to
    fair value. These intangible assets are being amortized over
    their expected useful lives.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Asset
    Retirement Obligation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our asset retirement obligations, or AROs, arise from the SMCRA
    and similar state statutes, which require that mine property be
    restored in accordance with specified standards and an approved
    reclamation plan. Our AROs are recorded initially at fair value.
    It has been our practice, and we anticipate that it will
    continue to be our practice, to perform a substantial portion of
    the reclamation work using internal resources. Hence, the
    estimated costs used in determining the carrying amount of our
    AROs may exceed the amounts that are eventually paid for
    reclamation costs if the reclamation work was performed using
    internal resources.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To determine the fair value of our AROs, we calculate on a mine
    by mine basis the present value of estimated reclamation cash
    flows. This process requires us to estimate the current
    disturbed acreage subject to reclamation, estimates of future
    reclamation costs and assumptions regarding the mine&#146;s
    productivity. These cash flows are discounted at the
    credit-adjusted, risk free interest rate based on
    U.S.&#160;Treasury bonds with a maturity similar to the expected
    lives of our mines.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the liability is initially recorded for the costs to open a
    new mine site, the offset is recorded to the producing mine
    asset. Over time, the ARO liability is accreted to its present
    value, and the capitalized cost is depreciated over the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    for the related mine. The liability is also increased as
    additional land is disturbed during the mining process. The
    timeline between digging the mining pit and extracting the coal
    is relatively short; therefore, much of the liability created
    for active mining is expensed within a month or so of
    establishment because the related coal has been extracted. If
    the assumptions used to estimate the ARO do not materialize as
    expected or regulatory changes occur, reclamation costs or
    obligations to perform reclamation and mine closure activities
    could be materially different than currently estimated. We
    review our entire reclamation liability at least annually and
    make necessary adjustments for permit changes as granted by
    state authorities, additional costs resulting from revisions to
    cost estimates and the quantity of disturbed acreage during the
    current year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a limited partnership, we are not a taxable entity for
    federal or state income tax purposes; the tax effect of our
    activities passes through to our unitholders. Therefore, no
    provision or liability for federal or state income taxes is
    included in our financial statements. Net income for financial
    statement purposes may differ significantly from taxable income
    reportable to our unitholders as a result of timing or permanent
    differences between financial reporting under GAAP and the
    regulations promulgated by the IRS.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenue
    Recognition</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Revenue from coal sales is recognized and recorded when shipment
    or delivery to the customer has occurred, prices are fixed or
    determinable and the title or risk of loss has passed in
    accordance with the terms of the sales contract. Under the
    typical terms of these contracts, risk of loss transfers to the
    customers at the mine or port when the coal is loaded on the
    rail, barge or truck.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Freight and handling costs paid to third-party carriers and
    invoiced to customers are recorded as cost of transportation and
    transportation revenue, respectively.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    87
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Royalty and non-coal revenue consists of coal royalty income,
    service fees for providing land-fill earth moving services,
    commissions that we receive from a third party who sells
    limestone that we recover during our coal mining process,
    service fees for operating a coal unloading facility for a third
    party and fees that we receive for trucking ash for two
    municipal utility customers. Revenues are recognized when
    earned, or when the services are performed. Royalty revenue
    relates to the overriding royalty we receive on our underground
    coal reserves that we sublease to a third party mining company.
    By June 2008, our sublessee had completed the installation of
    its processing infrastructure and began to sell its coal
    production to other third parties.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Coal
    Sales Contracts</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our below-market coal sales contracts that were acquired through
    the Phoenix Coal acquisition and in connection with our
    acquisition of Oxford Mining Company in 2007 are contracts for
    which the prevailing market price was in excess of the contract
    price. The fair value was based on discounted cash flows
    resulting from the difference between the below-market contract
    price and the prevailing market price at the date of
    acquisition. The difference between the below-market
    contracts&#146; cash flows and the cash flows at the prevailing
    market price is amortized into coal sales on the basis of tons
    shipped over the term of the respective contract.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Unit-Based
    Compensation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We account for unit-based awards in accordance with applicable
    guidance, which establishes standards of accounting for
    transactions in which an entity exchanges its equity instruments
    for goods or services. Unit-based compensation expense is
    recorded based upon the fair value of the award at the grant
    date. Such costs are recognized as expense on a straight-line
    basis over the corresponding vesting period. The fair value of
    our LTIP units is determined based on the sale price of our
    limited partner units in arm&#146;s length transactions. The
    unit price fair value was increased in September 2009 in
    connection with the Phoenix Coal acquisition where additional
    units were purchased by C&#038;T Coal and AIM Oxford
    disproportionately to their respective ownership interests to
    help fund the acquisition. This resulted in C&#038;T Coal&#146;s
    previous ownership interest being diluted. We verified the
    reasonableness of the new valuation of our units using
    traditional valuation techniques for publicly traded
    partnerships.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">New
    Accounting Standards Issued and Adopted</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the FASB issued a new standard establishing the
    FASB Accounting Standards Codification
    (&#147;Codification&#148;) as the sole source of authoritative
    generally accepted accounting principles. The Codification
    reorganized existing U.S.&#160;accounting and reporting
    standards issued by the FASB and other related private sector
    standard setters into a single source of authoritative
    accounting principles arranged by topic. The Codification
    supersedes all existing U.S.&#160;accounting standards; all
    other accounting literature not included in the Codification
    (other than SEC guidance for publicly traded companies) is
    considered non-authoritative. This standard is effective for
    interim and annual reporting periods ending after
    September&#160;15, 2009. The Codification does not change
    existing GAAP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, the FASB issued Accounting Standards Update
    (&#147;ASU&#148;)
    <FONT style="white-space: nowrap">2009-06,</FONT>
    <I>Implementation Guidance on Accounting for Uncertainty in
    Income Taxes and Disclosure Amendments for Nonpublic
    Entities</I>. This update addresses the need for additional
    implementation guidance on accounting for uncertainty in income
    taxes for all entities. The update clarifies that an
    entity&#146;s tax status as a pass through or tax-exempt
    not-for-profit entity is a tax position subject to recognition
    requirements of the standard and therefore must use the
    recognition and measurement guidance when assessing their tax
    positions. The ASU
    <FONT style="white-space: nowrap">2009-06</FONT>
    updates are effective for interim and annual periods ending
    after September&#160;15, 2009. The adoption of the guidance in
    ASU <FONT style="white-space: nowrap">2009-06</FONT>
    during the third quarter of 2009 did not have a material impact
    on our consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In May 2009, the FASB issued new guidance for accounting for
    subsequent events that established the accounting for and
    disclosure of events that occur subsequent to the balance sheet
    date but before financial statements are issued or are available
    to be issued. The standard provides guidance on
    management&#146;s
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    88
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    assessment of subsequent events and incorporates this guidance
    into accounting literature. The standard is effective
    prospectively for interim and annual periods ending after
    June&#160;15, 2009. We adopted this standard for the year ended
    December&#160;31, 2009 and the adoption did not impact our
    consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the FASB issued revised guidance on business
    combinations. This new guidance establishes principles and
    requirements for the acquirer of a business to recognize and
    measure in its financial statements. This amendment applies to
    all business combinations and establishes guidance for
    recognizing and measuring identifiable assets, liabilities,
    noncontrolling interests in the acquiree and goodwill. Most of
    these items are recognized at their full fair value on the
    acquisition date, including acquisitions where the acquirer
    obtains control but less than 100% ownership in the acquiree.
    The amendment also requires expensing acquisition-related costs
    as incurred and establishes disclosure requirements to enable
    the evaluation of the nature and financial effects of the
    business combination. This guidance is effective for business
    combinations with an acquisition date in fiscal years beginning
    after December&#160;15, 2008. We have recorded the acquisition
    of the surface coal mining assets of Phoenix Coal dated
    September&#160;30, 2009 under this revised guidance. The impact
    of adoption was to expense $379,000 of previously capitalized
    acquisition costs as of January&#160;1, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the FASB issued new guidance on the accounting
    for noncontrolling ownership interests in a subsidiary and for
    the deconsolidation of a subsidiary. The guidance requires that
    noncontrolling ownership interests in consolidated subsidiaries
    be presented in the consolidated balance sheet within
    partners&#146; capital as a separate component from the
    parent&#146;s equity as opposed to mezzanine equity.
    Consolidated net income will now be disclosed as the amount
    attributable to both the parent and the noncontrolling
    interests. The guidance also provides for changes in the
    parent&#146;s ownership interest in a subsidiary, including
    transactions where control is retained and where control is
    relinquished; it also requires expanded disclosures in the
    consolidated financial statements that clearly identify and
    distinguish between the interests of the parent owners and the
    interests of the noncontrolling owners of a subsidiary. This
    guidance requires retrospective application to all periods
    presented, as included in our consolidated financial statements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">New
    Accounting Standards Issued and Not Yet Adopted</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In August 2009, the FASB issued ASU
    <FONT style="white-space: nowrap">2009-05,</FONT>
    Measuring Liabilities at Fair Value. The amendment provides
    clarification that in circumstances in which a quoted price in
    an active market for the identical liability is not available, a
    reporting entity is required to measure fair value using one or
    more of the alternative valuation methods outlined in the
    guidance. It also clarifies that restrictions preventing the
    transfer of a liability should not be considered as a separate
    input or adjustment in the measurement of its fair value. This
    amendment was effective as of the beginning of interim and
    annual reporting periods that begin after August&#160;27, 2009.
    The adoption of this guidance did not impact our consolidated
    financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the FASB amended guidance for the consolidation of
    a variable interest entity (&#147;VIE&#148;). This guidance
    updated the determination of whether an enterprise is the
    primary beneficiary of a VIE, and is, therefore, required to
    consolidate an entity, by requiring a qualitative analysis
    rather than a quantitative analysis. This standard also requires
    continuous reassessments of whether an enterprise is the primary
    beneficiary of a VIE. Previously, reconsideration was required
    only when specific events had occurred. This guidance also
    requires enhanced disclosure about an enterprise&#146;s
    involvement with a VIE. The provisions of these updates are
    effective as of the beginning of interim and annual reporting
    periods that begin after November&#160;15, 2009. We do not
    believe that this standard will have a material impact on our
    consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<A name='147'>
<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Quantitative
    and Qualitative Disclosures about Market Risk</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We define market risk as the risk of economic loss as a
    consequence of the adverse movement of market rates and prices.
    We believe our principal market risks are commodity price risks
    and interest rate risk.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Commodity
    Price Risk</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historically, we have principally managed the commodity price
    risks from our coal sales through the use of long-term coal
    sales contracts of varying terms and durations, rather than
    through the use of derivative instruments. Please read
    &#147;&#151; Factors that Impact our Business&#148; for more
    information about our long-term coal sales contracts.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    89
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that the price risk associated with diesel fuel is
    significant because of possible price volatility. Taking into
    account full or partial diesel fuel cost pass through provisions
    in our long-term coal sales contracts and our fixed price
    forward contracts for delivery of diesel fuel, we estimate that
    a hypothetical increase of $0.10 per gallon for diesel fuel
    would have reduced net income attributable to our unitholders
    for the year ended December&#160;31, 2009 by $0.3&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Interest
    Rate Risk</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have exposure to changes in interest rates on our
    indebtedness associated with our credit facility. On
    September&#160;11, 2009, we entered into an interest rate cap
    agreement to hedge our exposure to rising interest rates during
    2010. This agreement, which has an effective date of
    January&#160;4, 2010 and a notional amount of
    $50.0&#160;million, provides for a LIBOR interest rate cap of 2%
    using three-month LIBOR. LIBOR was 0.251% as of
    December&#160;31, 2009. We paid a fixed fee of $85,000 for this
    agreement which has quarterly settlement dates and matures on
    December&#160;31, 2010. At December&#160;31, 2009, the value of
    the interest rate cap is $34,000 and is recorded in other assets
    and the
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    decrease in value of $51,000 was recorded to interest expense in
    our consolidated statement of operations for the year ended
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A hypothetical increase or decrease in interest rates by 1%
    would have changed our interest expense by $0.3&#160;million for
    the year ended December&#160;31, 2009, which reflects the impact
    of an interest rate swap that terminated in August 2009.
</DIV>

<A name='148'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Seasonality</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our business has historically experienced only limited
    variability in its results due to the effect of seasons. Demand
    for coal-fired power can increase due to unusually hot or cold
    weather as power consumers use more air conditioning or heating.
    Conversely, mild weather can result in softer demand for our
    coal. Adverse weather conditions, such as blizzards or floods,
    can impact our ability to mine and ship our coal and our
    customers&#146; ability to take delivery of coal.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    90
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='149'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE COAL
    INDUSTRY</FONT></B>
</DIV>

</A>
<A name='150'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Introduction</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal is an abundant natural resource that is used primarily as
    an efficient and affordable fuel for the generation of electric
    power. According to the most recent estimate of the EIA, there
    are approximately 929.3&#160;billion tons of worldwide
    recoverable coal reserves. Approximately 262.7&#160;billion
    tons, or 28.3%, of those reserves are located in the United
    States, more than in any other country. U.S.&#160;coal reserves
    represent over 200&#160;years of domestic supply based on
    current production rates. Coal is also the most abundant
    domestic fossil fuel, accounting for approximately 94% of the
    nation&#146;s fossil energy reserves.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal is ranked by heat content, with bituminous,
    <FONT style="white-space: nowrap">sub-bituminous</FONT>
    and lignite coal representing the highest to lowest heat
    ranking, respectively. Coal is also categorized as either steam
    coal or metallurgical coal. Steam coal is used by utilities and
    independent power producers to generate electricity and
    metallurgical coal is used by steel companies to produce
    metallurgical coke for use in blast furnaces. Steam coal
    comprises the vast majority of total coal resources, accounting
    for approximately 87% and 95% of the total global and
    U.S.&#160;coal production, respectively. Please read
    &#147;&#151;&#160;Special Note Regarding the EIA&#146;s Market
    Data and Projections&#148; below.
</DIV>

<A name='151'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Industry
    Trends</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal consumption and production in the United States have been
    driven in recent periods by several market dynamics and trends.
    The recent global economic downturn has negatively impacted coal
    demand in the short-term, but long-term projections for coal
    demand remain positive. These market dynamics and trends include
    the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Favorable long-term outlook for U.S.&#160;steam coal
    market</I>.&#160;&#160;Although domestic coal consumption
    declined in 2009 due to the global economic downturn, the EIA
    forecasts that domestic coal consumption will increase by 14.4%
    through 2015 and by 32.2% through 2035, primarily due to the
    projected continued growth in coal-fired electric power
    generation demand. The EIA also forecasts that coal-fired
    electric power generation will increase by 13.0% through 2015
    and by 27.0% through 2035, with coal remaining the dominant fuel
    source in the future.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Increasing demand for coal produced in Northern Appalachia
    and the Illinois Basin.</I>&#160;&#160;Coal production in
    Northern Appalachia and, to a greater extent the Illinois Basin
    began to decline after the adoption of the CAAA, which among
    other things, limited sulfur dioxide emissions from coal-fired
    electric power plants. According to the EIA, coal production in
    Northern Appalachia and the Illinois Basin is expected to grow
    by 29.2% and 33.1%, respectively, through 2015 and by 35.7% and
    42.8%, respectively, through 2035. We believe that this
    projected increase will be driven by a combination of the
    continued decline in coal production in Central Appalachia and
    the new scrubber installations at coal-fired power plants in our
    primary market area. According to public announcements,
    approximately 18,400 megawatts of additional scrubbed generating
    capacity are expected to come online in our primary market area
    by 2017, including 4,750 megawatts in Ohio in the next three
    years.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Decline in coal production in Central
    Appalachia.</I>&#160;&#160;Although Central Appalachia is
    currently the nation&#146;s second largest coal production area
    after the PRB, the EIA forecasts that coal production in Central
    Appalachia will decline by 34.5% through 2015 and by 54.1%
    through 2035. This decline will be offset by production from
    other U.S.&#160;regions, including Northern Appalachia and the
    Illinois Basin. The combination of reserve depletion and
    increasing regulatory enforcement, mining costs and geologic
    complexity in Central Appalachia is expected to lead to
    substantial production declines over the long term.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Expected near-term increases in international demand for
    U.S.&#160;coal exports</I>.&#160;&#160;Although down from the
    previous year, U.S.&#160;exports began to increase in the second
    half of 2009, supported by recovering global economies and
    continued rapid growth in electric power generation and steel
    production
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    91
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    capacity in Asia, particularly in China and India. In addition,
    traditional coal exporting countries such as Australia,
    Indonesia, Colombia and South Africa have been unable to
    increase exports rapidly enough for a variety of reasons,
    including geologic and logistical issues and increased domestic
    consumption. Furthermore, increased international demand for
    higher priced metallurgical coal has resulted in certain coal
    from Central Appalachia and Northern Appalachia, which can serve
    as either metallurgical or steam coal, being drawn into the
    metallurgical coal export market, which further reduces supplies
    of steam coal from this region for domestic consumption. Because
    of these trends, the United States is expected to continue to be
    an increasingly important swing supplier of coal to the global
    marketplace in the near term.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Development of new coal-related technologies will lead to
    increased demand for coal</I>.&#160;&#160;The EIA projects that
    new
    <FONT style="white-space: nowrap">coal-to-liquids</FONT>
    plants will account for 32&#160;million tons of annual coal
    demand in ten years with that amount more than doubling to
    68&#160;million tons by 2035. In addition, through the ARRA the
    federal government has targeted over $1.5&#160;billion to CCS
    research and another $800&#160;million for the Clean Coal Power
    Initiative, a ten-year program supporting commercial application
    of CCS technology.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Increasingly stringent air quality legislation will continue
    to impact the demand for coal.</I>&#160;&#160;A series of more
    stringent requirements related to particulate matter, ozone,
    mercury, sulfur dioxide, nitrogen oxides, carbon dioxide and
    other air emissions have been proposed or enacted by federal or
    state regulatory authorities in recent years. Considerable
    uncertainty is associated with these air quality regulations,
    some of which have been the subject of legal challenges in
    courts, and the actual timing of implementation remains
    uncertain. However, we believe that it is likely that additional
    air quality regulations ultimately will be adopted in some form
    at the federal or state level. While it is currently not
    possible to determine the impact of any such regulatory
    initiatives on future demand for coal, it may be materially
    adverse. See &#147;Risk Factors&#160;&#151; Risks Related to Our
    Business&#160;&#151; Existing and future regulatory requirements
    relating to sulfur dioxide and other air emissions could affect
    our customers and could reduce the demand for the high-sulfur
    coal we produce and cause coal prices and sales of our
    high-sulfur coal to decline materially.&#148;
</TD>
</TR>

</TABLE>

<A name='152'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coal
    Consumption and Demand</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The majority of coal consumed in the United States is used to
    generate electricity, with the balance used by a variety of
    industrial users to heat and power foundries, cement plants,
    paper mills, chemical plants and other manufacturing and
    processing facilities. Metallurgical coal is predominately
    consumed in the production of metallurgical coke used in
    steelmaking blast furnaces. In 2009, coal-fired power plants
    produced approximately 45% of all electric power generation,
    more than natural gas and nuclear, the two next largest domestic
    fuel sources, combined. Steam coal used by utilities and
    independent power producers to generate electricity, accounted
    for 92% of total coal consumption in 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2009, total coal consumption in the United States decreased
    by approximately 11% from 2008 levels, reflecting the effects of
    the economic recession. The drop in coal consumption was driven
    primarily by the reduction in electric power demand and the
    steep decline in natural gas prices that encouraged coal to
    natural gas switching among electric utilities. The decreased
    electric power demand was particularly apparent in the
    industrial sector where demand fell by an estimated 18.3% in
    2009. Unusually cool summer temperatures in some areas of the
    country where coal is the predominant source of electric power
    generation also resulted in lower coal consumption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Going forward, the EIA forecasts that total U.S.&#160;coal
    consumption will increase in 2010 by over 3% due to anticipated
    increases in electricity demand resulting from increased
    economic activity and higher natural gas prices. In addition,
    over the long term, the EIA forecasts in its 2010 reference case
    that total coal consumption will grow by 14% though 2015 and 32%
    through 2035, primarily due to gradual increases in coal-fired
    electric power generation and the introduction of
    <FONT style="white-space: nowrap">coal-to-liquids</FONT>
    plants.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    92
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth actual coal consumption for 2008,
    estimated consumption for 2009 and 2010 and the EIA&#146;s
    projected coal consumption by sector through 2035 for the
    periods indicated.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S. Coal
    Consumption by Sector<BR>
    (tons in millions)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Actual<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimate<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Forecast<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Growth<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Forecast<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Growth<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2015</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009-2015</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2035</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009-2035</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Electric Power
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,042
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    934
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    961
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,044
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Other Industrial
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Coke Plants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10.3
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Residential/ Commercial
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="white-space: nowrap">Coal-to-Liquids</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/m
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/m
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total U.S. Consumption
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,122
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    997
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,141
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,319
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Source: EIA.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the United States, the reliance on coal-fired generation is
    attributable to the abundance and low cost of coal. According to
    the EIA, coal is expected to remain the dominant energy source
    for electric power generation for the foreseeable future.
</DIV>

<A name='263'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S.
    Scrubber Market</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The CAAA imposed increasingly stringent regulations regarding
    the emissions of sulfur dioxide and nitrogen oxides. In response
    to these regulations, emission control technologies such as flue
    gas desulfurizers, also known as scrubbers, were developed to
    reduce emissions of sulfur dioxide. The use of scrubbers has
    addressed a wide array of technological and economic challenges
    and has become the predominant sulfur dioxide emissions control
    technology used by U.S.&#160;coal-fired power plants. Scrubbers
    have the additional benefit of being able to reduce mercury
    emissions. This widespread installation of scrubbers is expected
    to significantly increase demand for higher sulfur coal,
    particularly in our primary market area.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Nationwide, there are currently over 148,000 megawatts of
    scrubbed electric generating capacity, including 18,900
    megawatts that were added in 2009. According to public
    announcements, we expect 76,200 megawatts of additional scrubbed
    electric generating capacity to be added by 2017. Currently, in
    our primary market area there are over 54,500 megawatts of
    scrubbed electric generating capacity. According to public
    announcements, we expect approximately 18,400 megawatts of
    additional scrubbed electric generating capacity in our primary
    market area to come online by 2017, including 4,750 megawatts in
    Ohio in the next three years. This additional scrubbed capacity
    represents approximately 24% of the total scrubbed capacity to
    be added nationwide during that period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following map of the United States shows coal-fired power
    plants with existing or announced scrubbers:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>[Map to come]</B>
</DIV>

<A name='264'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coal
    Consumption in Our Primary Market Area</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal is the dominant fuel source for electric power generation
    in our primary market area and is expected to remain so for the
    foreseeable future. As shown in the table below, 69.1% of the
    electricity in our market area is generated by coal-fired power
    plants as compared to 38.2% for the rest of the United States.
    In addition, approximately 27.7% of coal consumption nationwide
    is burned by coal-fired power plants in our primary market area.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    93
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">2009
    Coal-Fired Electricity Generation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="71%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Electricity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Coal-Fired Electricity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Generation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Generation</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>GWh</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>GWh</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% of total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Ohio
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    135,949
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113,824
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Indiana
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,668
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108,591
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Pennsylvania
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    218,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104,927
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Illinois
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    193,214
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,949
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Kentucky
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,988
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,380
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    West Virginia
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,136
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    96.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="line-height: 10pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total&#160;&#151; Our Primary Market Area
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    825,970
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    570,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total&#160;&#151; Rest of United States&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,125,137
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,193,679
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="line-height: 10pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Total&#160;&#151; United States&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,951,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,764,486
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Source: EIA.</I>
</DIV>

<A name='153'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S. Coal
    Production</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Estimated total U.S.&#160;coal production in 2009 was
    1.1&#160;billion tons, a decrease of 7.7% from 2008. This
    decrease is due to the global economic downturn, which
    significantly reduced domestic demand for coal-fired electric
    power and led to a decline in exports. The EIA has forecasted a
    6.7% increase in coal production through 2015 and an 18.7%
    increase through to&#160;2035.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth historical and forcasted
    production statistics in each of the major U.S.&#160;coal
    producing regions for the periods indicated based on the
    EIA&#146;s data and projections.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S. Coal
    Production</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h69756h6975604.gif" alt="Bar graph from Barclays"><B> </B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Source: EIA. </I></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Coal
    Producing Regions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal is mined in over half of the states in the United States,
    but domestic coal production is primarily attributed to one of
    three coal producing regions: Appalachia, the Interior and the
    Western region. Within those three regions, the major producing
    centers are Northern and Central Appalachia, the Illinois Basin
    in the Interior region and the PRB in the Western region. The
    type, quality and characteristics of coal vary by, and within
    each, region.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    94
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Northern Appalachia.</I>&#160;&#160;Northern Appalachia
    includes Ohio, Pennsylvania, Maryland and northern West
    Virginia. The area includes reserves of bituminous coal with
    <FONT style="white-space: nowrap">mid-to-high</FONT>
    heat content (generally ranging from 10,300 to
    13,000&#160;Btu/lb) and
    <FONT style="white-space: nowrap">mid-to-high</FONT>
    sulfur content (typically ranging from 1.0% to 4.0%). Coal
    produced in Northern Appalachia is marketed primarily to
    electric utilities, industrial consumers and the export market,
    with some metallurgical coal marketed to steelmakers. The
    widespread installation of scrubbers by electric utilities is
    expected to significantly increase demand for high-sulfur coal
    from Northern Appalachia, providing a positive outlook for the
    area.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Estimated coal production in Northern Appalachia for 2009 was
    121.5&#160;million tons, a decline of 10.5% from 2008. In 2010,
    the EIA forecasts that coal production in Northern Appalachia
    will increase slightly to 122.1&#160;million tons. The EIA
    forecasts that coal production in Northern Appalachia will
    increase by 29.2% through 2015 and by 35.7% through 2035.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Central Appalachia.</I>&#160;&#160;Central Appalachia
    includes eastern Kentucky, southern West Virginia, Virginia and
    northern Tennessee. The area includes reserves of bituminous
    coal with a high heat content (typically
    <FONT style="white-space: nowrap">12,000&#160;Btu/lb</FONT>
    or greater) and relatively low sulfur content (typically ranging
    from 0.5% to 1.5%). Coal produced in Central Appalachia is
    marketed primarily to electric utilities, with metallurgical
    coal marketed to steelmakers. The combination of reserve
    depletion and increasing regulatory enforcement, mining costs
    and geologic complexity in Central Appalachia is expected to
    lead to substantial production declines over the long term. In
    addition, the widespread installation of scrubbers is expected
    to enable higher sulfur coal from Northern Appalachia and the
    Illinois Basin to replace coal from Central Appalachia.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Estimated coal production in Central Appalachia for 2009 was
    215.5&#160;million tons, a decline of 8.0% from 2008. In 2010,
    the EIA estimates that production in Central Appalachia will
    decline by another 13.9%.  The EIA forecasts that coal
    production in Central Appalachia will decline by 34.5% through
    2015, causing total production in Central Appalachia to fall
    below forecasted production levels for Northern Appalachia. The
    EIA forecasts the coal production in Central Appalachia will
    decline by more than half through 2015.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following map of the United States shows domestic electric
    generating plants that receive coal shipments from Central
    Appalachia:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>[Map to come]</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Illinois Basin.</I>&#160;&#160;The Illinois Basin includes
    western Kentucky, Illinois and Indiana. The area includes
    reserves of bituminous coal with a mid-level heat content
    (typically ranging from 10,100 to
    <FONT style="white-space: nowrap">12,600&#160;Btu/lb)</FONT>
    and
    <FONT style="white-space: nowrap">mid-to-high</FONT>
    sulfur content (typically ranging from 1.0% to 4.3%). Illinois
    Basin coal also can have high ash and chlorine content. Most of
    the coal produced in the Illinois Basin is used to produce
    electricity, with small amounts used in industrial applications.
    The EIA forecasts that production of high sulfur coal in the
    Illinois Basin, which has trended down since the early 1990s
    when many coal-fired plants switched to lower sulfur coal to
    reduce sulfur dioxide emissions after the passage of the CAAA,
    will rebound as existing coal-fired capacity is retrofitted with
    scrubbers and new coal-fired capacity with scrubbers is added.
    In addition, planned
    <FONT style="white-space: nowrap">coal-to-liquids</FONT>
    facilities, which are backed by state support and incentives and
    are indifferent to the sulfur content of coal, are poised to
    become substantial new consumers of Illinois Basin coal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Estimated coal production in the Illinois Basin was
    93.4&#160;million tons for 2009, a decrease of 5.9% from 2008.
    In 2010, the EIA forecasts that coal production in the Illinois
    Basin will increase slightly to 97.3&#160;million tons. The EIA
    forecasts that coal production in the Illinois Basin will
    increase by 33.1% through 2015 and by 42.8% through 2035.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Powder River Basin.</I>&#160;&#160;The PRB is located in
    Wyoming and Montana. In terms of production, the PRB is the
    dominant coal producing region in the world, with its coal-seam
    geology allowing for high volume, low cost surface mining. The
    PRB produces
    <FONT style="white-space: nowrap">sub-bituminous</FONT>
    coal with low sulfur content (typically ranging from 0.2% to
    0.9%) and low level heat content (typically ranging from 8,000
    to 9,500&#160;Btu). After strong growth in production over the
    past 20&#160;years, growth in demand for PRB coal is expected to
    moderate in the future due to the slowing demand for low sulfur,
    low Btu coal as scrubbers proliferate and concerns about
    increases in rail transportation rates and rising operating
    costs grow.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    95
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Estimated coal production in the PRB was 417.7&#160;million tons
    for 2009, a decrease of 7.5% from 2008. In 2010, the EIA
    forecasts that coal production in the PRB will increase to
    434.9&#160;million tons. The EIA forecasts that coal production
    in the PRB will increase by 12.6% through 2015 and by 31.9%
    through 2035.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Coal
    Imports and Exports</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Almost all of the coal consumed in the United States is produced
    from domestic sources. Coal imports represent a small portion of
    domestic coal consumption, averaging only about 2% of total
    U.S.&#160;coal consumption. Coal is imported into the United
    States primarily from Colombia, Indonesia and Venezuela.
    Imported coal generally serves coastal states along the Gulf of
    Mexico and the eastern seaboard. We do not expect U.S.&#160;coal
    imports to increase significantly in the near term due to rising
    demand in Asia and infrastructure limitations in the United
    States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although down from the previous year, U.S.&#160;exports began to
    increase in the second half of 2009, supported by recovering
    global economies and continued rapid growth in electric power
    generation and steel production capacity in Asia, particularly
    in China and India. In addition, traditional coal exporting
    countries such as Australia, Indonesia, Colombia and South
    Africa have been unable to increase exports rapidly enough for a
    variety of reasons, including geologic and logistical issues and
    increased domestic consumption. Furthermore, increased
    international demand for higher priced metallurgical coal has
    resulted in certain coal from Central Appalachia and Northern
    Appalachia, which can serve as either metallurgical or steam
    coal, being drawn into the metallurgical coal export market,
    which further reduces supplies of steam coal from this region
    for domestic consumption. Because of these trends, the United
    States is expected to continue to be an increasingly important
    swing supplier of coal to the global marketplace in the near
    term.
</DIV>

<A name='155'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coal
    Mining Methods</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal is mined using two primary methods, underground mining and
    surface mining.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Surface
    Mining</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Surface mining is generally used when coal is found relatively
    close to the surface, when multiple seams in close vertical
    proximity are being mined or when conditions otherwise warrant.
    Surface mining involves removing the overburden (earth and rock
    covering the coal) with heavy earth moving equipment and
    explosives, loading out the coal, replacing the overburden and
    topsoil after the coal has been excavated and reestablishing
    vegetation and plant life. There are four primary surface mining
    methods in use in Northern Appalachia and the Illinois Basin:
    area, contour, auger and highwall.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Area Mining.</I>&#160;&#160;Area mining removes coal from
    broad areas where the land is relatively flat. An initial cut of
    overburden is removed and placed in a location that will
    facilitate final reclamation. After the coal is removed from the
    initial cut, a second cut of overburden is removed and placed in
    the initial cut, exposing the coal for removal in the second
    mine cut. This process is repeated until the mining cuts have
    advanced through the reserve area.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Contour Mining.</I>&#160;&#160;Contour mining removes coal
    from more hilly terrain. Contour mining is characterized by mine
    cuts that follow the contour of the hill and are generally
    smaller than the mine cuts common in area mining. A wedge of
    overburden is removed along the coal outcrop on the side of a
    hill, forming a bench at the level of the coal. After the coal
    is removed, overburden from subsequent mine cuts is placed back
    on the bench to return the hill to its natural slope.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Auger Mining.</I>&#160;&#160;Auger mining recovers coal that
    is uneconomic to mine by the area and contour mining methods due
    to the large amount of overburden overlying the coal. The auger
    is placed at the exposed coal face and bores into the coal seam.
    Pillars of undisturbed coal are left in place to support the
    overlying overburden.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Highwall Mining.</I>&#160;&#160;Highwall mining is similar to
    auger mining. A highwall miner consists of a launch vehicle,
    push beams and a continuous miner head. This system utilizes the
    continuous miner
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    96
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    to cut into the exposed coal face. The push beams contain augers
    or conveyor belts that transport the coal back to the launch
    vehicle as the continuous miner advances. The launch vehicle
    applies hydraulic pressure on the push beams to push the
    continuous miner against the face as it advances into the coal
    seam. As in the auger mining method, pillars of undisturbed coal
    are left in place to support the overburden. Both the auger and
    highwall mining methods allow recovery of coal that would
    otherwise have been lost due to the depth of the coal seam below
    the surface.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Surface mining produces the majority of U.S.&#160;coal output,
    accounting for nearly 70% of U.S.&#160;production in 2009, with
    large surface mines (mines producing greater than
    10&#160;million tons per annum) contributing over 40% of the
    total. Productivity for surface mines in the eastern United
    States in 2009 averaged 3.64 tons per employee per hour.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Underground
    Mining</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Underground mining is generally used when the coal seam is too
    deep to permit surface mining. There are two principal
    underground mining methods: room and pillar and longwall.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Room and Pillar Mining.</I>&#160;&#160;In room and pillar
    mining, rooms are cut into the coal bed leaving a series of
    pillars, or columns of coal, to help support the mine roof and
    control the flow of air. Continuous mining equipment is used to
    cut the coal from the mining face. The room and pillar method is
    often used to mine smaller coal blocks or thin seams.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Longwall Mining.</I>&#160;&#160;The other underground mining
    method commonly used in the United States is the longwall mining
    method. In longwall mining, a rotating drum is trammed
    mechanically across the face of coal, and a hydraulic system
    supports the roof of the mine while it advances through the
    coal. Chain conveyors then move the loosened coal to an
    underground mine conveyor system for delivery to the surface.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Productivity for underground mines in the eastern United States
    in 2009 averaged 3.02 tons per employee per hour.
</DIV>

<A name='156'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coal
    Quality Characteristics</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal quality is differentiated primarily by its heat content as
    measured in British thermal units per pound (Btu/lb). In
    general, coal with low moisture and ash content has high heat
    content. Coal with higher heat content commands higher prices
    because less coal is needed to generate a given quantity of
    electric power.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal quality is also differentiated by sulfur content. When coal
    is burned sulfur dioxide and other air emissions are released.
    <FONT style="white-space: nowrap">Sub-bituminous</FONT>
    coal (e.g. PRB coal) typically has lower sulfur content than
    bituminous coal. Coal in southern West Virginia, eastern
    Kentucky, Colorado and Utah, however, also generally has low
    sulfur content. A coal&#146;s sulfur content can be further
    classified as compliance or non-compliance. Compliance coal is a
    term used in the United States to describe coal that, when
    burned, emits less than 1.2 lbs of sulfur dioxide per million
    Btu and complies with the requirements of the CAAA without the
    use of scrubbers. The primary reserves of compliance coal are
    found in both the PRB and Central&#160;Appalachia.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    High sulfur coal can be burned in electric utility plants
    equipped with sulfur-reduction technology, such as scrubbers,
    which can reduce sulfur dioxide emissions by more than 90%.
    Plants without scrubbers can burn high sulfur coal by blending
    it with lower sulfur coal, or by purchasing emission allowances
    on the open market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal ash and chlorine content also can influence the
    marketability of a particular coal. Ash is the inorganic residue
    remaining after the combustion of coal. As with sulfur content,
    ash content varies from seam to seam. Ash content is also an
    important characteristic of coal because electric generating
    plants must handle and dispose of ash following combustion. The
    chlorine content of coal is important to generating station
    operators since high levels can adversely impact boiler
    performance directly by both high and low temperature corrosion
    and indirectly by reacting with other coal impurities to cause
    ash fouling. Coal found in the central
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    97
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Illinois Basin (primarily within the state of Illinois)
    typically exhibits higher chlorine concentrations than the coal
    found in western Kentucky and Indiana.
</DIV>

<A name='157'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transportation</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The U.S.&#160;coal industry is dependent on the availability of
    a consistent and responsive transportation network connecting
    the various supply regions to the domestic and international
    markets. Railroads and barges comprise the foundation of the
    domestic coal distribution system, collectively handling about
    three-quarters of all coal shipments. Truck and conveyor systems
    typically move coal over shorter distances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although the purchaser typically pays the freight,
    transportation costs are still important to coal mining
    companies because the purchaser may choose a supplier largely
    based on the total delivered cost of coal, which includes the
    cost of transportation. Coal used for domestic consumption is
    generally sold
    <FONT style="white-space: nowrap">free-on-board</FONT>
    at the mine, or FOB mine, which means the purchaser normally
    bears the transportation costs. Transportation can be a large
    component of a purchaser&#146;s total cost.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While coal can sometimes be moved by one transportation method
    to market, it is common for two or more modes to be used to ship
    coal (i.e., inter-modal movements). The method of transportation
    and the delivery distance greatly impact the total cost of coal
    delivered to the consumer.
</DIV>

<A name='265'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Special
    Note Regarding the EIA&#146;s Market Data and
    Projections</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Coal industry market data and projections referred to in this
    section and elsewhere in this prospectus and prepared by the EIA
    reflect statements of what might happen in the coal industry
    given the assumptions and methodologies used by the EIA.
    Industry projections of the EIA are subject to numerous
    assumptions and methodologies chosen by the EIA. In addition,
    these projections assume that the laws and regulations in effect
    at the time of the projections remain unchanged and that no
    pending or proposed federal or state carbon emissions
    legislation has been enacted and that additional coal-fired
    power plants will be built during the period. Therefore, the
    EIA&#146;s projections do not take into account potential
    regulation of greenhouse gas emissions pursuant to proposed or
    future U.S.&#160;treaty obligations, statutory or regulatory
    changes under the Clean Air Act, or federal or additional state
    adoption of a greenhouse gas regulatory scheme or reductions in
    greenhouse gas emissions mandated by courts or through other
    legally enforceable mechanisms. The EIA&#146;s projections with
    respect to the demand for coal may not be met, absent other
    factors, if comprehensive carbon emissions legislation is
    enacted. In addition, these projections may assume certain
    general economic conditions or industry conditions and commodity
    prices for alternative energy sources at the time of the
    projection that may or may not reflect actual economic or
    industry conditions during the forecast period, including with
    respect to planned and unplanned additional electricity
    generating capacity. The economic conditions accounted for in
    the EIA&#146;s industry projections reflect existing and
    projected economic conditions at the time the projections were
    made and do not necessarily reflect current economic conditions
    or any subsequent deterioration of economic conditions. Actual
    results may differ from those results projected by the EIA,
    including projections related to the demand for additional
    electricity generating capacity, because of changes in economic
    conditions, laws or regulations, pricing for other energy
    sources, unanticipated production cuts, or because of other
    factors not anticipated in the EIA&#146;s projections.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    98
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='158'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BUSINESS</FONT></B>
</DIV>

</A>
<A name='159'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Overview</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a low cost producer of high value steam coal, and we are
    the largest producer of surface mined coal in Ohio. We focus on
    acquiring steam coal reserves that we can efficiently mine with
    our modern, large scale equipment. Our reserves and operations
    are strategically located in Northern Appalachia and the
    Illinois Basin to serve our primary market area of Illinois,
    Indiana, Kentucky, Ohio, Pennsylvania and West Virginia. We
    market our coal primarily to large utilities with coal-fired,
    base-load scrubbed power plants under long-term coal sales
    contracts. We believe that we will experience increased demand
    for our high-sulfur coal from power plants that have or will
    install scrubbers. Currently, there is over 54,500 megawatts of
    scrubbed base-load electric generating capacity in our primary
    market area and plans have been announced to add over 18,400
    megawatts of additional scrubbed capacity by the end of 2017. We
    also believe that we will experience increased demand for our
    coal from power plants that use coal from Central Appalachia as
    production in that region continues to decline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently have 19 active surface mines that are managed as
    eight mining complexes. During the fourth quarter of 2009, our
    largest mine represented 12.5% of our coal production. This
    diversity reduces the risk that operational issues at any one
    mine will have a material impact on our business or our results
    of operations. Consistent coal quality across many of our mines
    and the mobility of our equipment fleet allows us to reliably
    serve our customers from multiple mining complexes while
    optimizing our mining plan. Our operations also include two
    river terminals, strategically located in eastern Ohio and
    western Kentucky, that further enhance our ability to supply
    coal to our customers with river access from multiple mines.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We produced 5.8&#160;million tons of coal during 2009, including
    0.4&#160;million tons produced from the reserves we acquired in
    western Kentucky from Phoenix Coal on September&#160;30, 2009.
    As a result of this acquisition, our coal production during the
    fourth quarter of 2009 was 1.8&#160;million tons, or
    7.2&#160;million tons on an annualized basis. During 2009, we
    sold 6.3&#160;million tons of coal, including 0.5&#160;million
    tons of purchased coal. We currently have long-term coal sales
    contracts in place for 2010, 2011, 2012 and 2013 that represent
    97.2%, 93.0%, 71.4% and 39.7%, respectively, of our 2010
    estimated coal sales of 8.5&#160;million tons. Members of our
    senior management team have long-standing relationships within
    our industry, and we believe those relationships will allow us
    to continue to obtain long-term contracts for our coal
    production that will continue to provide us with a reliable and
    stable revenue base.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we controlled 91.6&#160;million
    tons of proven and probable coal reserves, of which
    68.6&#160;million tons were associated with our surface mining
    operations and the remaining 23.0&#160;million tons consisted of
    underground coal reserves that we have subleased to a third
    party in exchange for an overriding royalty. Historically, we
    have been successful at replacing the reserves depleted by our
    annual production and growing our reserve base by acquiring
    reserves with low operational, geologic and regulatory risks and
    that were located near our mining operations or that otherwise
    had the potential to serve our primary market area. Over the
    last five years, we have produced 23.6&#160;million tons of coal
    and acquired 52.9&#160;million tons of proven and probable coal
    reserves, including 24.6&#160;million tons of coal reserves that
    we acquired in connection with the Phoenix Coal acquisition. We
    believe that our existing relationships with owners of large
    reserve blocks and our position as the largest producer of
    surface mined coal in Ohio will allow us to continue to acquire
    reserves in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2009, we generated revenues
    of approximately $293.8&#160;million, net income attributable to
    our unitholders of approximately $23.5&#160;million and Adjusted
    EBITDA of approximately $50.8&#160;million. Please read
    &#147;Selected Historical and Pro Forma Consolidated Financial
    and Operating Data&#148; for our definition of Adjusted EBITDA
    and a reconciliation of Adjusted EBITDA to net income (loss)
    attributable
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    99
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    to our unitholders. The following table summarizes our mining
    complexes, our coal production for the year ended
    December&#160;31, 2009 and our coal reserves as of
    December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="15%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Production for<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="13" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As of December&#160;31, 2009</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>the Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Proven &#038; <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Primary<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Probable<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Heat <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Sulfur<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Transportation<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Mining Complexes</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Reserves<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Content</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Methods</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B>(in million tons)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(Btu/lb)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(%)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Surface Mining Operations:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <I>Northern Appalachia (principally Ohio)</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Cadiz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,520
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Barge, Rail
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Tuscarawas County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Truck
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Belmont County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Barge
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Plainfield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Truck
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    New Lexington
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Rail
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Harrison<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,040
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    Barge, Rail, Truck
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Noble County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,230
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Barge, Truck
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <I>Illinois Basin (Kentucky)</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Muhlenberg
    County<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,295
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Barge, Truck
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 28pt">
    <B>Total Surface Mining Operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <B>Underground Coal Reserves:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <I>Northern Appalachia (Ohio)</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    Tusky<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 28pt">
    <B>Total Underground Coal Reserves</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 19pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Reported as recoverable coal reserves, which is the portion of
    the coal that could be economically and legally extracted or
    produced at the time of the reserve determination, taking into
    account mining recovery and preparation plant yield. For
    definitions of proven coal reserves, probable coal reserves and
    recoverable coal reserves, please read &#147;&#151;&#160;Coal
    Reserves.&#148;</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    The Harrison mining complex is owned by Harrison Resources, our
    joint venture with CONSOL Energy. We own 51% of Harrison
    Resources and CONSOL Energy owns the remaining 49% through one
    of its subsidiaries. Because the results of operations of
    Harrison Resources are included in our consolidated financial
    statements for the year ended December&#160;31, 2009 as required
    by GAAP, coal production and proven and probable coal reserves
    attributable to the Harrison mining complex are presented on a
    gross basis assuming we owned 100% of Harrison Resources. Please
    read &#147;&#151;&#160;Mining Operations&#160;&#151; Northern
    Appalachia&#160;&#151; Harrison Mining Complex.&#148;</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Acquired from Phoenix Coal on September&#160;30, 2009. As a
    result, production data represents production from the date of
    acquisition though December&#160;31, 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Please read &#147;&#151;&#160;Coal Reserves&#160;&#151;
    Underground Coal Reserves&#148; for more information about our
    underground coal reserves at the Tusky mining complex, which we
    have subleased to a third party in exchange for an overriding
    royalty. During 2009, we received royalty payments on
    0.6&#160;million tons of coal produced from the Tusky mining
    complex.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    100
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">[Map to
    come]</FONT></B>
</DIV>

<A name='160'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Business
    Strategies</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our primary business objective is to maintain and, over time,
    increase our cash available for distribution by executing the
    following strategies:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Increasing coal sales to large utilities with coal-fired,
    base-load scrubbed power plants in our primary market
    area.</I>&#160;&#160;In 2009, approximately 69% of the total
    electricity generated in our primary market area was generated
    by coal-fired power plants, compared to approximately 38% for
    the rest of the United States. We intend to continue to focus on
    marketing coal to large utilities with coal-fired, base-load
    scrubbed power plants in our primary market area of Illinois,
    Indiana, Kentucky, Ohio, Pennsylvania and West Virginia. We
    believe that we will experience increased demand for our
    high-sulfur coal from power plants that have or will install
    scrubbers. Currently, there is over 54,500 megawatts of scrubbed
    base-load electric generating capacity in our primary market
    area and plans have been announced to add over 18,400 megawatts
    of additional scrubbed capacity by the end of 2017. We also
    believe that we will experience increased demand for our coal
    from power plants that use coal from Central Appalachia as
    production in that region continues to decline.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Maximizing profitability by maintaining highly efficient,
    diverse and low cost surface mining
    operations</I>.&#160;&#160;We intend to focus on lowering costs
    and improving the productivity of our operations. We utilize
    surface mining methods that allow us to leverage our large scale
    mobile equipment and experienced work force to minimize our
    mining costs while balancing our production with near-term coal
    sales commitments without incurring large start up costs. We
    believe our focus on efficient surface mining practices results
    in our cash costs being among the lowest of our peers in
    Northern Appalachia, which we believe will allow us to compete
    effectively, especially during periods of declining coal prices.
    We are in the process of implementing the same mining practices
    that we currently use in Ohio at the mines that we recently
    acquired as part of the Phoenix Coal acquisition. We currently
    have 19 active surface mines that are managed as eight mining
    complexes, with our largest mine comprising 12.5% of our coal
    production during the fourth quarter of 2009. This diversity and
    focus on reserves with low regulatory risks reduce the
    likelihood that operational or permitting issues at any one mine
    will have a material impact on our business or our results of
    operations.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Generating stable revenue by entering into long-term coal
    sales contracts</I>.&#160;&#160;We intend to continue to enter
    into long-term coal sales contracts for substantially all of our
    annual coal production, which will reduce our exposure to
    fluctuations in the market prices. We believe our senior
    management&#146;s longstanding relationships within our industry
    will allow us to continue to obtain long-term contracts for
    substantially all of our production. We believe our long-term
    coal sales contracts provide us with a reliable and stable
    revenue base, and we intend to seek cost pass through or
    inflation adjustment provisions in our long-term coal sales
    contracts to mitigate our exposure to rising costs.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Continuing to grow our reserve base and production
    capacity</I>.&#160;&#160;We intend to continue to grow our
    reserve base by acquiring reserves with low operational,
    geologic and regulatory risks that we can mine economically and
    that are located near our mining operations or otherwise have
    the potential to serve our primary market area. We are focused
    primarily on acquisitions that are consistent with our target
    customer base in terms of location and coal quality. We believe
    this strategy will allow us to expand our presence in our
    primary market area, target new customers and increase our
    annual coal production. We believe that our existing
    relationships with owners of large reserve blocks and our
    position as the largest producer of surfaced mined coal in Ohio
    will allow us to acquire additional reserves in the future. We
    intend to continue to grow our production capacity by expanding
    our fleet of large scale equipment and opening new mines as our
    sales commitments increase over time.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    101
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='161'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Competitive
    Strengths</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe the following competitive strengths will enable us to
    execute our business strategies successfully:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>We have an attractive portfolio of long-term coal sales
    contracts</I>.&#160;&#160;We believe our long-term coal sales
    contracts provide us with a reliable and stable revenue base. We
    currently have long-term coal sales contracts in place for 2010,
    2011, 2012 and 2013 that represent 97.2%, 93.0%, 71.4% and
    39.7%, respectively, of our 2010 estimated coal sales of
    8.5&#160;million tons. A majority of our estimated annual coal
    production for 2010 will be delivered to utilities that are
    investment grade. Our long-term coal sales contracts typically
    contain full or partial cost pass through or inflation
    adjustment provisions that provide some protection in rising
    operating cost environments. Members of our senior management
    team have long-standing relationships within our industry, and
    we believe those relationships will allow us to continue to
    obtain long-term contracts for substantially all of our
    production.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>We have a successful history of growing our reserve base and
    production capacity</I>.&#160;&#160;Historically, we have been
    successful at replacing the reserves depleted by our annual
    production and growing our reserve base by acquiring reserves
    with low operational, geologic and regulatory risks and that are
    located near our mining operations or that otherwise have the
    potential to serve our primary market area. We have also been
    successful in growing our production capacity by expanding our
    fleet of large scale equipment and opening new mines to meet our
    sales commitments. Over the last five years, we have produced
    23.6&#160;million tons of coal and acquired 52.9&#160;million
    tons of proven and probable coal reserves, including
    24.6&#160;million tons of coal reserves that we acquired in
    connection with the Phoenix Coal acquisition. As a result of the
    Phoenix Coal acquisition and production increases in Ohio, our
    coal production for the fourth quarter of 2009 on an annualized
    basis was 7.2&#160;million tons, an increase of 41% over our
    actual 2008 production.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Our mining operations are flexible and
    diverse</I>.&#160;&#160;During the fourth quarter of 2009, our
    largest mine represented 12.5% of our coal production. We
    currently have 19 active surface mines that are managed as eight
    mining complexes. This diversity reduces the risk that
    operational or production issues at any one mine will have a
    material impact on our business or our results of operations.
    Consistent coal quality across many of our mines and the
    mobility of our equipment fleet allows us to reliably serve our
    customers from multiple mining complexes while optimizing our
    mining plan. Additionally, we have the flexibility to add mining
    hours to our work week, which allows us to respond to increasing
    customer demand and to compensate for unexpected disruptions at
    any one mine by increasing the production at other mines. Our
    operations also include two river terminals, strategically
    located in eastern Ohio and western Kentucky, that enhance our
    ability to supply coal to our customers with river access from
    multiple mines. Our river terminals also give us access to power
    plants in our primary market area that receive coal by barge,
    which is the lowest cost coal transportation alternative.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>We are a low cost producer of coal</I>.&#160;&#160;We use
    efficient mining practices that take advantage of economies of
    scale and reduce operating costs per ton. For example, in
    Northern Appalachia we operate some of the largest mobile
    equipment in use east of the Mississippi River. The productive
    capacity of this equipment helps us to maintain low overburden
    removal costs and allows us to mine coal reserves that are not
    efficiently mineable with smaller equipment. Our use of large
    scale equipment, our good labor relations with our non-union
    workforce, our employees&#146; expertise and knowledge of our
    mining practices, our low level of legacy liabilities and our
    history of acquiring reserves without large up-front capital
    investments have positioned us as one of the lowest cash cost
    coal producers in Northern Appalachia. In addition, we are in
    the process of deploying the same mining practices that we
    currently use in Ohio at the mines that we acquired as part of
    the Phoenix Coal acquisition.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Both production of, and demand for, the coal we produce are
    expected to increase in our primary market
    area</I>.&#160;&#160;According to the EIA, production of coal in
    Northern Appalachia and the Illinois
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    102
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    Basin is expected to increase by 29.2% and 33.1% through 2015,
    respectively. This compares to an expected increase in total
    coal production in the United States of 6.7% over the same
    period. According to the EIA, this expected increase in coal
    production in Northern Appalachia and the Illinois Basin is
    attributable to anticipated increases in demand for high-sulfur
    coal from scrubbed power plants. The EIA also forecasts
    increased demand from consumers of Central Appalachia coal as
    coal production in that region continues to decline.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Our senior management team and key operational employees have
    extensive industry experience</I>.&#160;&#160;The members of our
    senior management team have, on average, 24&#160;years of
    experience in the coal industry and have a track record of
    acquiring, building and operating businesses profitably and
    safely. In addition, our key operational employees have
    extensive mining experience and have been with us for an average
    of 22&#160;years. We believe our operational employees are one
    of the key strengths to our business because their knowledge and
    skills allow us to operate our mines in a safe and efficient
    manner.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>We have a strong safety and environmental
    record</I>.&#160;&#160;We operate some of the industry&#146;s
    safest mines. Over the last four years, our MSHA reportable
    incident rate was on average 14.4% lower than the rate for all
    surface coal mines in the United States. In addition, we are
    committed to maintaining a system that controls and reduces the
    environmental impacts of mining operations. We have won numerous
    awards for our strong safety and environmental record. In
    January 2010, the West Virginia Coal Association awarded us
    their Surface Mine North Award for our past reclamation efforts
    in West Virginia. In addition, in 2008 the Appalachian Regional
    Reforestation Initiative awarded us their Regional Award for
    Excellence in Reforestation for exemplary performance using the
    forestry reclamation approach for reclaiming coal mined lands.
</TD>
</TR>

</TABLE>

<A name='162'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    History</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a Delaware limited partnership that was formed in August
    2007 by AIM and our founders, Charles C. Ungurean, the President
    and Chief Executive Officer of our general partner and a member
    of the board of directors of our general partner, and Thomas T.
    Ungurean, the Senior Vice President, Equipment, Procurement and
    Maintenance of our general partner. Each of our two founders has
    over 37&#160;years of experience in the coal mining industry. In
    connection with our formation, our founders contributed all of
    their interests in Oxford Mining Company to us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our founders formed Oxford Mining Company in 1985 to provide
    contract mining services to a mining division of a major oil
    company. In 1989, our founders transitioned Oxford Mining
    Company from a contract miner into a producer of its own coal
    reserves. In January 2007, Oxford Mining Company entered into a
    joint venture, Harrison Resources, with a subsidiary of CONSOL
    Energy to mine surface coal reserves purchased from CONSOL
    Energy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, we completed the acquisition of Phoenix
    Coal&#146;s active surface mining operations. The Phoenix Coal
    acquisition provided us with an entry into the Illinois Basin in
    western Kentucky and included one mining complex comprised of
    four mines as well as the Island river terminal on the Green
    River in western Kentucky. In connection with this acquisition,
    we increased our total proven and probable coal reserves by
    24.6&#160;million tons.
</DIV>

<A name='163'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Sponsors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    AIM is a private investment firm specializing in natural
    resources, infrastructure and real property. AIM, along with
    certain of the funds that AIM advises, indirectly owns all of
    the ownership interests in AIM Oxford. Certain directors of our
    general partner are principals of AIM and have ownership
    interests in AIM. After completion of this offering, AIM Oxford
    will continue to hold 66.3% of the ownership interests in our
    general partner and will hold&#160;&#160;&#160;&#160;&#160;% of
    our common units and&#160;&#160;&#160;&#160;&#160;% of our
    subordinated units (&#160;&#160;&#160;&#160;&#160;% of our total
    units).
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    103
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C&#038;T Coal is owned by our founders, Charles C. Ungurean and
    Thomas T. Ungurean. After completion of this offering, C&#038;T
    Coal will continue to hold 33.7% of the ownership interests in
    our general partner and will hold&#160;&#160;&#160;&#160;&#160;%
    of our common units and&#160;&#160;&#160;&#160;&#160;% of our
    subordinated units (&#160;&#160;&#160;&#160;&#160;% of our total
    units).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the contribution of Oxford Mining Company to
    us in August 2007, C&#038;T Coal, Charles C. Ungurean and Thomas
    T. Ungurean agreed that they would not compete with us in the
    coal mining business in Illinois, Kentucky, Ohio, Pennsylvania,
    West Virginia and Virginia. This non-compete agreement is in
    effect until August&#160;24, 2014.
</DIV>

<A name='164'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Mining
    Operations</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently have 19&#160;active surface mines that are managed
    as eight mining complexes. We define a mining complex as a group
    of mines that are located in close proximity to each other or
    that routinely sell coal to the same customer. Our
    transportation facilities include two river terminals and two
    rail loading facilities. Our mining facilities include two wash
    plants, six blending facilities and nine crushing facilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our surface mining operations use area, contour, auger and
    highwall mining methods. Our area mining operations use
    truck/shovel and truck/loader equipment fleets along with large
    dozers. Our contour mining operations use truck/loader equipment
    fleets and large dozers. We own and operate seven augers and
    move these machines between mining complexes as needed. We
    currently own and utilize one Superior highwall miner at our
    Tuscarawas County mining complex, and a third party contractor
    operates one Superior highwall miner at our Belmont County
    mining complex. Both highwall miners are mobile and are moved
    among our mining complexes as necessary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In Northern Appalachia we operate large electric and hydraulic
    shovels matched with a fleet of 240-ton haul trucks and 200-ton
    haul trucks, which are some of the largest in use east of the
    Mississippi River. We also deploy a fleet of over 65 large
    Caterpillar D-11 and similar class dozers. We employ preventive
    maintenance and rebuild programs to ensure that our equipment is
    well-maintained. The rebuild programs are performed by
    third-party contractors. We assess the equipment utilized in our
    mining operations on an ongoing basis and replace it with new,
    more efficient units on an as-needed basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our transportation facilities include our Bellaire river
    terminal that is located on the Ohio River in eastern Ohio, our
    Cadiz rail loadout facility located on the Ohio Central Railroad
    near Cadiz, Ohio, our New Lexington rail facility located on the
    Ohio Central Railroad in Perry County, Ohio and our Island river
    terminal and transloading facility located on the Green River in
    western Kentucky. Our Bellaire river terminal, which is located
    on the Ohio River in Bellaire, Ohio, has an annual throughput
    capacity of over 4&#160;million tons with a sustainable barge
    loading rate of 2,000 tons per hour. The barge harbor for this
    terminal can simultaneously hold up to 25 loaded barges and 30
    empty barges. We control our Bellaire river terminal through a
    long-term lease agreement with a third party, and we have
    11&#160;years remaining on this lease. We own our Island river
    terminal and transloading facility that is located on the Green
    River in western Kentucky. Our Island river terminal has an
    annual throughput capacity of approximately 3&#160;million tons
    with a sustainable barge loading rate of 1,500 tons per hour.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depending on coal quality and customer requirements, in most
    cases our coal is crushed and shipped directly from our mines to
    our customers. However, blending different types or grades of
    coal may be required from time to time to meet the coal quality
    and specifications of our customers. Coal of various sulfur and
    ash contents can be mixed or &#147;blended&#148; to meet the
    specific combustion and environmental needs of customers.
    Blending is typically done at one of our six blending facilities:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our Barb Tipple blending and coal crushing facility that is
    adjacent to one of our customer&#146;s power plants near
    Coshocton, Ohio;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our Strasburg wash plant near Strasburg, Ohio;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our Bellaire river terminal on the Ohio River;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our Island river terminal on the Green River in western Kentucky;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    104
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our Stonecreek coal crushing facility located in Tuscarawas
    County, Ohio;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our Schoate wash plant located in Muhlenberg County, Kentucky.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>[Map to come]</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Northern
    Appalachia</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We operate seven surface mining complexes in Northern
    Appalachia, substantially all of which are located in eastern
    Ohio. For the year ended December&#160;31, 2009, our mining
    complexes in Northern Appalachia produced an aggregate of
    5.4&#160;million tons of steam coal. The following table
    provides summary information regarding our mining complexes in
    Northern Appalachia as of December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="26%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>Tons Produced<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Transportation Facilities Utilized</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Transportation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Active <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>for the Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Mining Complex</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>River Terminal</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Rail Loadout</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Method<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Mines</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>(in millions)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Cadiz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Bellaire
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Cadiz
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Barge, Rail
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Tuscarawas County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Truck
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Belmont County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Bellaire
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Barge
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Plainfield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Truck
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    New Lexington
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    New Lexington
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Rail
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Harrison<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Bellaire
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Cadiz
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    Barge, Rail, Truck
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Noble County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Bellaire
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    Barge, Truck
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Barge means transported by truck to our Bellaire river terminal
    and then transported to the customer by barge. Rail means
    transported by truck to a rail facility and then transported to
    the customer by rail. Truck means transported to the customer by
    truck.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    The Harrison mining complex is owned by Harrison Resources, our
    joint venture with CONSOL Energy. We own 51% of Harrison
    Resources and CONSOL Energy owns the remaining 49% through one
    of its subsidiaries. Because the results of operations of
    Harrison Resources are included in our consolidated financial
    statements for the year ended December&#160;31, 2009 as required
    by GAAP, coal production attributable to the Harrison mining
    complex is presented on a gross basis assuming we owned 100% of
    Harrison Resources. Please read &#147;&#151;&#160;Harrison
    Mining Complex.&#148;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cadiz Mining Complex.</I>&#160;&#160;The Cadiz mining complex
    is located in Harrison County, Ohio and includes reserves
    located in Jefferson County, Ohio and Washington County,
    Pennsylvania and consists of the Daron and County Road 29 mines.
    We began our mining operations at this mining complex in 2000.
    Operations at the Cadiz mining complex target the
    Pittsburgh&#160;#8, Redstone&#160;#8A and Meigs Creek&#160;#9
    coal seams. As of December&#160;31, 2009, the Cadiz mining
    complex included 12.4&#160;million tons of proven and probable
    coal reserves. The infrastructure at this mining complex
    includes a coal crusher, a truck scale and the Cadiz rail
    loadout. Coal produced from the Cadiz mining complex is trucked
    either to our Bellaire river terminal on the Ohio River and then
    transported by barge to the customer, or trucked to our Cadiz
    rail loadout facility on the Ohio Central Railroad and then
    transported by rail to the customer. This mining complex uses
    area and auger methods of surface mining. This mining complex
    produced 1.1&#160;million tons of coal for the year ended
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Tuscarawas County Mining Complex.</I>&#160;&#160;The
    Tuscarawas County mining complex is located in Tuscarawas,
    Columbiana and Stark Counties, Ohio, and consists of the
    Stonecreek, Stillwater, Chumney and Strasburg mines. We began
    our mining operations at this mining complex in 2003. Operations
    at this mining complex target the Brookville&#160;#4, Lower
    Kittanning&#160;#5, Middle Kittanning&#160;#6, Upper
    Freeport&#160;#7 and Mahoning&#160;#7A coal seams. As of
    December&#160;31, 2009, the Tuscarawas County mining complex
    included 8.8&#160;million tons of proven and probable coal
    reserves. The infrastructure at this mining complex includes two
    coal crushers with truck scales and the Strasburg wash plant.
    Coal produced from the Tuscarawas County
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    105
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    mining complex is trucked directly to our customers, our Barb
    Tipple blending and coal crushing facility or our Strasburg wash
    plant. Coal trucked to our Barb Tipple blending and coal
    crushing facility or our Strasburg wash plant is then
    transported by truck to the customer after processing is
    completed. This mining complex uses the area, contour, auger and
    highwall miner methods of surface mining. This mining complex
    produced 0.9&#160;million tons of coal for the year ended
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Belmont County Mining Complex.</I>&#160;&#160;The Belmont
    County mining complex is located in Belmont County, Ohio, and
    consists of the Lafferty, Boswell, Flushing and Wheeling Valley
    mines. We began our mining operations at this mining complex in
    1999. Operations at the Belmont County mining complex target the
    Pittsburgh&#160;#8 and Meigs Creek&#160;#9 coal seams. As of
    December&#160;31, 2009, the Belmont County mining complex
    included 6.6&#160;million tons of proven and probable coal
    reserves. Coal produced from the Belmont County mining complex
    is primarily transported by truck to our Bellaire river terminal
    on the Ohio River. Coal produced from this mining complex is
    crushed and blended at the Bellaire river terminal before it is
    loaded onto barges for shipment to our customers on the Ohio
    River. This mining complex uses area, contour, auger and
    highwall miner methods of surface mining. This mining complex
    produced 1.3&#160;million tons of coal for the year ended
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Plainfield Mining Complex.</I>&#160;&#160;The Plainfield
    mining complex is located in Muskingum, Guernsey and Coshocton
    Counties, Ohio, and consists of the Plainfield mine. We began
    our mining operations at this mining complex in 1990. Operations
    at the Plainfield mining complex target the Middle
    Kittanning&#160;#6 coal seam. As of December&#160;31, 2009, the
    Plainfield mining complex included 6.4&#160;million tons of
    proven and probable coal reserves. The infrastructure at this
    mining complex includes our Barb Tipple blending and coal
    crushing facility. Substantially all of the coal we produce from
    the Plainfield mining complex is sold to AEP. The majority of
    the coal produced from the Plainfield mining complex is trucked
    to our Barb Tipple facility for crushing and blending or
    directly to AEP&#146;s Conesville generating station. Coal
    trucked to our Barb Tipple facility is transported by truck to
    AEP after processing is completed. Some of the coal production
    from this mining complex is trucked to our Strasburg wash plant
    and then transported by truck to the customer. This mining
    complex uses contour, auger and highwall miner methods of
    surface mining. This mining complex produced 0.5&#160;million
    tons of coal for the year ended December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>New Lexington Mining Complex.</I>&#160;&#160;The New
    Lexington mining complex is located in Perry, Athens and Morgan
    Counties, Ohio, and consists of the New Lexington mine. We began
    our mining operations at this mining complex in 1993. Operations
    at the New Lexington mining complex target the Lower
    Kittanning&#160;#5 and Middle Kittanning&#160;#6 coal seams. As
    of December&#160;31, 2009, the New Lexington mining complex
    included 4.9&#160;million tons of proven and probable coal
    reserves. The infrastructure at this mining complex includes a
    coal crusher, a truck scale and the New Lexington rail loadout.
    Coal produced from the New Lexington mining complex is delivered
    via-off highway trucks to our New Lexington rail loadout
    facility on the Ohio Central Railroad where it is then
    transported by rail to the customer. This mining complex uses
    the area method of surface mining. This mining complex produced
    0.6&#160;million tons of coal for the year ended
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Harrison Mining Complex.</I>&#160;&#160;The Harrison mining
    complex is located in Harrison County, Ohio, and consists of the
    Harrison mine. Mining operations at this mining complex began in
    2007. The Harrison mining complex is owned by Harrison
    Resources. We own 51% of Harrison Resources and CONSOL Energy
    owns the remaining 49% indirectly through one of its
    subsidiaries. We entered into this joint venture in 2007 to mine
    coal reserves purchased from CONSOL Energy. We manage all of the
    operations of, and perform all of the contract mining and
    marketing services for, Harrison Resources. Because the results
    of operations of Harrison Resources are included in our
    consolidated financial statements for the year ended
    December&#160;31, 2009 as required by GAAP, coal production and
    proven and probable coal reserves attributable to the Harrison
    mining complex are presented on a gross basis assuming we owned
    100% of Harrison Resources.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since its formation in 2007, Harrison Resources has acquired
    3.5&#160;million tons of proven and probable coal reserves from
    CONSOL Energy. We believe that CONSOL Energy controls additional
    reserves in Harrison County, Ohio, that could be acquired by
    Harrison Resources in the future. However, CONSOL
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    106
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Energy has no obligation to sell those reserves to Harrison
    Resources, and we cannot assure you that Harrison Resources
    could acquire those reserves from CONSOL Energy on acceptable
    terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Operations at the Harrison mining complex target the
    Pittsburgh&#160;#8, Redstone&#160;#8A and Meigs Creek&#160;#9
    coal seams. As of December&#160;31, 2009, the Harrison mining
    complex included 2.8&#160;million tons of proven and probable
    coal reserves. The infrastructure at this mining complex
    includes a coal crusher and a truck scale. Coal produced from
    the Harrison mining complex is trucked to our Bellaire river
    terminal, our Cadiz rail loadout facility or directly to
    customers. Coal trucked to our Bellaire river terminal is
    transported to the customer by barge and coal trucked to our
    Cadiz rail loadout facility is transported to the customer by
    rail. This mining complex uses the area method of surface
    mining. This mining complex produced 0.7&#160;million tons of
    coal for the year ended December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Noble County Mining Complex.</I>&#160;&#160;The Noble County
    mining complex is located in Noble and Guernsey Counties, Ohio,
    and consists of the Long-Sears and Hall&#146;s Knob mines. We
    began our mining operations at this mining complex in 2006.
    Operations at the Noble County mining complex target the
    Pittsburgh&#160;#8 and Meigs Creek&#160;#9 coal seams. As of
    December&#160;31, 2009, the Noble County mining complex included
    2.5&#160;million tons of proven and probable coal reserves. Coal
    produced from the Noble County mining complex is trucked to our
    Bellaire river terminal on the Ohio River or to our Barb Tipple
    facility. Coal trucked to our Bellaire river terminal is then
    transported by barge to the customer. Coal trucked to our Barb
    Tipple blending and coal crushing facility is transported by
    truck to the customer after processing is completed. This mining
    complex uses the area, contour and auger methods of surface
    mining. This mining complex produced 0.3&#160;million tons of
    coal for the year ended December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Illinois
    Basin</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We operate one surface mining complex in the Illinois Basin,
    which is located in western Kentucky. We acquired this operation
    from Phoenix Coal on September&#160;30, 2009. For the period
    beginning on October&#160;1, 2009 and ending on
    December&#160;31, 2009, this mining complex produced an
    aggregate of 0.4&#160;million tons of steam coal. The following
    table provides summary information regarding our mining complex
    in the Illinois Basin as of December&#160;31, 2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="43%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>Transportation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Tons Produced for<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Facilities Utilized</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>the Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>River<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Rail<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Transportation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Mining Complex</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Terminal</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Loadout</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Method<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Active Mines</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Muhlenberg County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    Island
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    Barge, Truck
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Barge means transported by truck to our Island river terminal
    and then transported to the customer by barge. Truck means
    transported to customer by truck.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Acquired in the Phoenix Coal acquisition that occurred on
    September&#160;30, 2009. As a result, production data is limited
    to the fourth quarter of 2009.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Muhlenberg County Mining Complex.</I>&#160;&#160;The
    Muhlenberg County mining complex is located in Muhlenberg and
    McClean Counties, which is in western Kentucky, and consists of
    the Schoate/431, Winn, Jessup and KO mines. We began our mining
    operations at this mining complex in October 2009. Operations at
    the Muhlenberg County mining complex target
    the&#160;#5,&#160;#6,&#160;#9,&#160;#10,&#160;#11,&#160;#12
    and&#160;#13 coal seams of the Illinois Basin. As of
    December&#160;31, 2009, the Muhlenberg County mining complex
    included 24.2&#160;million tons of proven and probable coal
    reserves. The infrastructure at this mining complex includes the
    Schoate wash plant, the Winn, Jessup, and KO coal crushers and
    our Island river terminal. Coal produced from this mining
    complex is usually crushed at the mine site and then trucked to
    our Island river terminal on the Green River or directly to the
    customer. Coal trucked to our Island river terminal is then
    transported to the customer by barge. Some of the production
    from this mining complex is washed at our Schoate wash plant
    prior to being transported either by truck directly to the
    customer, or by truck to our Island river terminal and then
    transported by barge to the customer. This mining complex uses
    the area method of surface mining. This mining complex produced
    0.4&#160;million tons of steam coal during the fourth quarter of
    2009.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    107
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='165'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Coal
    Reserves</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The estimates of our proven and probable reserves associated
    with our surface mining operations in Ohio are derived from our
    internal estimates, which estimates were audited by John&#160;T.
    Boyd Company, an independent mining and geological consulting
    firm.  The estimates of our proven and probable reserves
    associated with our surface mining operations in the Illinois
    Basin and our proven and probable underground coal reserves are
    derived from reserve reports prepared by John&#160;T. Boyd
    Company. These estimates are based on geologic data, economic
    data such as cost of production and projected sale prices and
    assumptions concerning permitability and advances in mining
    technology. Our coal reserves are reported as &#147;recoverable
    coal reserves,&#148; which is the portion of the coal that could
    be economically and legally extracted or produced at the time of
    the reserve determination, taking into account mining recovery
    and preparation plant yield. These estimates are periodically
    updated to reflect past coal production, new drilling
    information and other geologic or mining data. Acquisitions or
    dispositions of coal properties will also change these
    estimates. Changes in mining methods may increase or decrease
    the recovery basis for a coal seam, as will changes in
    preparation plant processes. We maintain reserve information in
    secure computerized databases, as well as in hard copy. The
    ability to update or modify the estimates of our coal reserves
    is restricted to our engineering group and the modifications are
    documented.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Reserves&#148; </I>are defined by SEC Industry Guide 7
    as that part of a mineral deposit which could be economically
    and legally extracted or produced at the time of the reserve
    determination. Industry Guide 7 divides reserves between
    &#147;proven (measured) reserves&#148; and &#147;probable
    (indicated) reserves,&#148; which are defined as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>&#147;Proven (Measured) Reserves.&#148;</I> Reserves for
    which (a)&#160;quantity is computed from dimensions revealed in
    outcrops, trenches, workings or drill holes; and grade
    <FONT style="white-space: nowrap">and/or</FONT>
    quality are computed from the results of detailed sampling and
    (b)&#160;the sites for inspection, sampling and measurement are
    spaced so closely and the geologic character is so well defined
    that size, shape, depth and mineral content of reserves are
    well-established.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>&#147;Probable (Indicated) Reserves.&#148;</I> Reserves for
    which quantity and grade
    <FONT style="white-space: nowrap">and/or</FONT>
    quality are computed from information similar to that used for
    proven (measured) reserves, but the sites for inspection,
    sampling, and measurement are farther apart or are otherwise
    less adequately spaced. The degree of assurance, although lower
    than that for proven (measured) reserves, is high enough to
    assume continuity between points of observation.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, all of our proven and probable
    coal reserves were &#147;assigned&#148; reserves, which are coal
    reserves that can be mined without a significant capital
    expenditure for mine development.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we owned 17.4% of our coal
    reserves and leased 82.6% of our coal reserves from various
    third-party landowners. The majority of our leases have terms
    denominated in years and we believe that the term of years will
    allow the recoverable coal reserves to be fully extracted in
    accordance with our projected mining plan. Some of our leases
    have an initial term denominated in years but also provide for
    the term of the lease to continue until exhaustion of the
    &#147;mineable and merchantable&#148; coal in the lease area so
    long as we comply with the terms of the lease.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It generally takes us from 12 to 30&#160;months to obtain a
    SMCRA permit. Permits are issued for an initial five year term
    and must be renewed if mining is to continue after the end of
    the term. We submit and obtain new mining permits on a
    continuing basis to replace existing permits as they are
    depleted. Based on our current surface mining plan, we have
    proven and probable coal reserves with active permits that will
    allow us to mine for approximately the next three years. We do
    not expect to have any material delays in obtaining or renewing
    permits on our remaining coal reserves associated with our
    mining operations.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    108
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table provides information as of December&#160;31,
    2009 on the location of our operations and the amount and
    ownership of our coal reserves:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total Tons of Proven and Probable Coal
    Reserves<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Mining Complex</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Leased</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in million tons)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Surface Mining Operations:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Northern Appalachia (principally Ohio)</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cadiz
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Tuscarawas
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Belmont County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Plainfield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    New Lexington
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Harrison<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Noble County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total Northern Appalachia</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Illinois Basin (Kentucky)</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Muhlenberg County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total Illinois Basin</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B>Total Surface Mining Operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Underground Coal Reserves:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Tusky<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    <B>Total Underground Coal Reserves</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><I>Percentage of Total</I></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Reported as recoverable coal reserves. All proven and probable
    coal reserves are &#147;assigned&#148; coal reserves, which are
    coal reserves that can be mined without a significant capital
    expenditure for mine development.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    The Harrison mining complex is owned by Harrison Resources. We
    own 51% of Harrison Resources and CONSOL Energy owns the
    remaining 49% through one of its subsidiaries. Because the
    results of operations of Harrison Resources are included in our
    consolidated financial statements for the year ended
    December&#160;31, 2009 as required by GAAP, proven and probable
    coal reserves attributable to the Harrison mining complex are
    presented on a gross basis assuming we owned 100% of Harrison
    Resources. Please read &#147;&#151;&#160;Mining
    Operations&#160;&#151; Northern Appalachia&#160;&#151; Harrison
    Mining Complex.&#148;</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Please read &#147;&#151;&#160;Underground Coal Reserves&#148;
    for more information about our underground coal reserves at the
    Tusky mining complex, which we have leased to a third party in
    exchange for royalty payments. During 2009, we received royalty
    payments on 0.6&#160;million tons of coal produced from the
    Tusky mining complex.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    109
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table provides information on particular
    characteristics of our coal reserves as of December&#160;31,
    2009:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As received
    Basis<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B># of <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Proven and Probable Coal Reserves</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>SO2/mm<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Sulfur
    Content<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Mining Complex</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Ash</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>% Sulfur</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Btu/lb.</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Btu</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>&#060;2%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2-4%</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>&#062;4%</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in million tons)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Surface Mining Operations:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Northern Appalachia (principally Ohio)</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <I>Cadiz</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,520
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Tuscarawas County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Belmont County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,510
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Plainfield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    New Lexington
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Harrison<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,040
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Noble County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,230
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <I>Illinois Basin (Kentucky)</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Muhlenberg County
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,295
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Underground Coal Reserves:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Tusky<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    As received represents an analysis of a sample as received at a
    laboratory operated by a third party.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    The Harrison mining complex is owned by Harrison Resources. We
    own 51% of Harrison Resources and CONSOL Energy Inc owns the
    remaining 49% through one of its subsidiaries. Because the
    results of operations of Harrison Resources are included in our
    consolidated financial statements for the year ended
    December&#160;31, 2009 as required by U.S. generally accepted
    accounting principles, proven and probable coal reserves
    attributable to the Harrison mining complex are presented on a
    gross basis assuming we owned 100% of Harrison Resources. Please
    read &#147;&#151;&#160;Mining Operations&#160;&#151; Northern
    Appalachia&#160;&#151; Harrison Mining Complex.&#148;</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Please read &#147;&#151;&#160;Underground Coal Reserves&#148;
    for more information about our underground coal reserves at the
    Tusky mining complex, which we have leased to a third party in
    exchange for royalty payments. During 2009, we received royalty
    payments on 0.6&#160;million tons of coal produced from the
    Tusky mining complex.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Underground
    Coal Reserves</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We originally leased our underground coal reserves from a third
    party in 2003 in exchange for a royalty based on tonnage sold.
    We began our underground mining operation in late 2003. In June
    2005, we sold the Tusky mining complex, and we subleased our
    underground coal reserves associated with that complex to the
    purchaser in exchange for an overriding royalty. Our overriding
    royalty is equal to a percentage of the sales price received by
    our sublessee for the coal produced from our underground coal
    reserves. In addition, our sublessee is obligated to pay the
    royalty we owe to our lessor. We have at least 15&#160;years
    remaining on the lease for our underground coal reserves, and
    our sublessee has at least 15&#160;years remaining on its
    sublease from us.
</DIV>

<A name='166'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reclamation</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are committed to minimizing our environmental impact during
    the mining process. However, there is always some degree of
    impact. To minimize the long-term environmental impact of our
    mining activities, we plan and monitor each phase of our mining
    projects as well as our post-mining reclamation efforts. As of
    December&#160;31, 2009, we had approximately $31.3&#160;million
    in surety bonds outstanding to secure the performance of our
    reclamation obligations, which were supported by approximately
    $6.9&#160;million in letters of
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    110
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    credit. In addition to providing surety bonds, we have also made
    a significant investment to complete the required reclamation
    activities in a timely and professional manner to cause our
    surety bonds to be released. We have historically performed, and
    expect to continue to perform, reclamation activities on a
    continuous basis as our mining activities progress.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Over 95% of our active surface mining permits are associated
    with reserves that were mined by other coal producers prior to
    the implementation of SMCRA. We are able to economically mine
    these reserves due to increased coal pricing and improved mining
    technologies compared to the pre-SMCRA period. Reclamation
    standards prior to SMCRA were considerably lower than
    today&#146;s standards. These pre-SMCRA mining areas have
    unreclaimed highwalls and often have water quality or vegetation
    deficiencies. Our mining activities not only recover coal that
    was left behind by previous operators, but also significantly
    reduce the environmental and safety hazards created by their
    mining activities. Although we have reclamation obligations with
    respect to these pre-SMCRA mining areas, these obligations are
    typically no greater than the reclamation obligations for newly
    mined reserves.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Surface or groundwater that comes in contact with materials
    resulting from mining activities can become acidic and contain
    elevated levels of dissolved metals, a condition referred to as
    AMD. We have seven mining permits that are identified on
    Ohio&#146;s Inventory of Long-Term AMD sites. Only one of these
    sites, associated with the Strasburg wash plant, requires
    continuous AMD treatment, for which we have estimated the
    present value of the projected annual treatment cost at less
    than $10,000 per year. While we anticipate that AMD treatment
    will not be required once reclamation is completed, it is
    possible that AMD treatment will be required for some time and
    current AMD treatment costs could escalate due to changes in
    flow or water quality. One site on the AMD Inventory List has
    been recommended by Ohio for removal from the AMD Inventory List
    and the remaining sites are being monitored to assess long-term
    AMD treatment issues. Moreover, we anticipate that one of these
    sites being monitored will receive final surety bond release in
    2010 and will be removed from the AMD Inventory List.
</DIV>

<A name='167'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limestone</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At our Cadiz mining complex, we remove limestone in order to
    mine the underlying coal. We sell this limestone to a third
    party that crushes and processes the limestone before it is sold
    to local governmental authorities, construction companies and
    individuals. The third party pays us for this limestone based on
    a percentage of the revenue it receives from sales of this
    limestone. Our revenues for the year ended December&#160;31,
    2009 include $1.4&#160;million in limestone sales.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2009, we produced 0.5&#160;million tons of limestone. Based
    on estimates from our internal engineers, our Cadiz mining
    complex includes 8.0&#160;million tons of proven and probable
    limestone reserves as of December&#160;31, 2009. All of these
    limestone reserves were assigned reserves, which are limestone
    reserves that can be recovered without a significant capital
    expenditure for mine development.
</DIV>

<A name='168'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Other
    Operations</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2009, we generated $1.3&#160;million of revenue from a
    variety of services we perform in connection with our surface
    mining operations. This revenue included the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    services fees we earn for operating a transloader for a third
    party that offloads coal from railcars on the Ohio Central
    Railroad at one of our customer&#146;s power plants;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    service fees we earn for providing operational services for
    Tunnel Hill Partners, LP, an entity owned by our sponsors that
    owns a landfill;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    service fees we earn for hauling and disposing of ash at a third
    party landfill for two municipal utilities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For more information regarding our relationships and our
    sponsors&#146; relationships with Tunnel Hill Partners, please
    read &#147;Certain Relationships and Related Party
    Transactions.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    111
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='169'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Customers</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">General</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We market the majority of the coal we produce to base-load power
    plants in our six-state market area under long-term coal sales
    contracts. Our primary customers are major electric utilities,
    municipalities and cooperatives and industrial customers. For
    the year ended December&#160;31, 2009, we derived 70% of our
    revenues from coal sales to electric utilities (including sales
    through brokers), 19% of our revenues from coal sales to
    municipalities and cooperatives, 9% of our revenues from coal
    sales to industrial customers and 2% of our revenues from a
    mixture of sales of non-coal material such as limestone, royalty
    payments on our underground coal reserves and fees for services
    we perform for third parties.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Long-Term
    Coal Sales Contracts</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2009, we generated
    approximately 95.8% of our revenues from coal delivered under
    our long-term coal sales contracts, and we expect to continue
    selling a significant portion of our coal under long-term coal
    sales contracts in the future. We define long-term contracts as
    those with a term of one year or longer and our long-term coal
    sales contracts typically have terms ranging from one to eight
    years. For 2010, 2011, 2012 and 2013, we currently have
    long-term coal sales contracts that represent 97.2%, 93.0%,
    71.4% and 39.7%, respectively, of our 2010 estimated coal sales
    of 8.5&#160;million tons. During 2010, 2011, 2012 and 2013, we
    have committed to deliver 8.2&#160;million tons,
    7.9&#160;million tons, 6.1&#160;million tons and
    3.4&#160;million tons of coal, respectively, under long-term
    coal sales contracts. These amounts include contracts with
    re-openers as described below. In addition, one of our long-term
    coal sales contracts that ends in 2012 can be extended by the
    customer for two additional three-year terms. If this customer
    elects to extend this contract, we will be committed to deliver
    an additional 2.0&#160;million tons in 2013, and our 2013 coal
    sales under long-term coal sales contracts, as a percentage of
    2010 estimated coal sales, would increase to 63.3%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of our coal sales contracts result from competitive
    bidding and negotiations with customers. As a result, the terms
    of these agreements&#160;&#151; including price re-openers, coal
    quality requirements, quantity parameters, permitted sources of
    supply, effects of future regulatory changes, extension options,
    force majeure, termination and assignment provisions&#160;&#151;
    vary by customer. However, most of our long-term coal sales
    contracts have full or partial cost pass through provisions or
    inflation adjustment provisions. For 2010, 2011, 2012 and 2013,
    61%, 72%, 80% and 100% of the coal, respectively, that we have
    committed to deliver under our long-term coal sales contracts
    are subject to full or partial cost pass through or inflation
    adjustment provisions. Cost pass through provisions increase or
    decrease our coal sales price for all or a specified percentage
    of changes in the cost of fuel, explosives and, in certain
    cases, labor. Inflation adjustment provisions adjust the initial
    contract price over the term of the contract either by a
    specific percentage or a percentage determined by reference to
    various inflation related indices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Two of our long-term coal sales contracts have price re-openers
    that provide for market-based adjustments to the initial price
    every three years. These contracts will terminate if we cannot
    agree upon a market-based price with the customer. For 2011,
    2012 and 2013, 0.4&#160;million tons, 0.4&#160;million tons and
    0.6&#160;million tons of coal, respectively, that we have
    committed to deliver under our long-term coal sales contracts
    are subject to price re-opener provisions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain of our long-term coal sales contracts give the customer
    the option to elect to purchase additional tons in the future at
    a fixed price. Our long-term coal sales contracts that contain
    these option tons typically require the customer to provide us
    with six months advance notice of an election for option tons.
    For 2010, 2011 and 2012, we have outstanding option tons of
    0.7&#160;million, 1.0&#160;million and 0.7&#160;million,
    respectively. If our customers do elect to receive these option
    tons, we believe we will have the operating flexibility to meet
    these requirements through increased production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Quality and volumes for the coal are stipulated in our coal
    sales contracts, and in some instances our customers have the
    option to vary annual or monthly volumes. Most of our coal sales
    contracts contain provisions requiring us to deliver coal within
    certain ranges for specific coal characteristics such as heat
    content, sulfur, ash, hardness and ash fusion temperature.
    Failure to meet these quality specifications can result
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    112
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in economic penalties, suspension or cancellation of shipments
    or ultimately termination of the agreements. Some of our coal
    sales contracts specify approved locations from which coal must
    be sourced. Some of our contracts set out mechanisms for
    temporary reductions or delays in coal volumes in the event of a
    force majeure, including events such as strikes, adverse mining
    conditions, mine closures, or transportation disruptions that
    affect us as well as unanticipated customer plant outages that
    may effect our customer&#146;s ability to receive coal
    deliveries.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Customer
    Concentration</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We derived 90% of our total revenues from coal sales to our ten
    largest customers for the year ended December&#160;31, 2009,
    with our top five customers accounting for 77% of our total
    revenues. In addition, for the year ended December&#160;31, 2009
    we derived 34.7%, 14.7% and 14.6% of our revenues from AEP, East
    Kentucky Power Cooperative and Duke Energy, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Transportation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our coal is delivered to our customers by barge, truck or rail.
    Over 55% of the coal we shipped in 2009 was transported by our
    to our customers by barge, which is generally cheaper than
    transporting coal by truck or rail. We operate river terminals
    on the Ohio River in eastern Ohio and the Green River in western
    Kentucky, which have annual throughput capacities of
    approximately 4&#160;million tons and 3&#160;million tons,
    respectively. We also use third-party trucking to transport coal
    to our customers. In addition, certain of our mines are located
    near rail lines. On April&#160;1, 2006, we entered into a
    long-term transportation contract for rail services, which has
    been amended and extended through March&#160;31, 2011. Our
    customers typically pay the transportation costs to their
    location when coal is shipped by barge. We typically pay for the
    cost to transport coal to our customers by truck and rail and to
    our river terminals and rail loadout facilities. However, our
    sales contracts typically have these transportation costs built
    into the price. For the year ended December&#160;31, 2009,
    55.0%, 42.0% and 3.0% of our coal sales tonnage was shipped by
    barge, truck and rail, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that we have good relationships with rail carriers
    and truck companies due, in part, to our modern coal-loading
    facilities and the working relationships and experience of our
    transportation and distribution employees.
</DIV>

<A name='170'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Suppliers</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the year ended December&#160;31, 2009, expenses we incurred
    to obtain goods and services in support of our mining operations
    were $97.8&#160;million, excluding capital expenditures.
    Principal supplies and services used in our business include
    diesel fuel, oil, explosives, maintenance and repair parts and
    services, and tires and lubricants. For the year ended
    December&#160;31, 2009, we hedged 54.4% of our diesel fuel usage
    using fixed priced forward contracts that provide for physical
    delivery. These fixed priced forward contracts have terms
    ranging from six months to one year and generally do not have
    collateral requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We use third-party suppliers for a significant portion of our
    equipment rebuilds and repairs and for blasting services. We
    also use a third party contractor for highwall mining services.
    We use bidding processes to promote competition between
    suppliers and we seek to develop relationships with those
    suppliers whose focus is on lowering our costs. We seek
    suppliers that identify and concentrate on implementing
    continuous improvement opportunities within their area of
    expertise.
</DIV>

<A name='171'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Competition</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The coal industry is highly competitive. There are numerous
    large and small producers in all coal producing regions of the
    United States, and we compete with many of these producers. Our
    main competitors include Alliance Resource Partners, L.P., Alpha
    Natural Resources, Inc., Armstrong Coal Company, Buckingham Coal
    Co., Inc., The Cline Group, CONSOL Energy, Massey Energy
    Company, Murray Energy Corporation, Patriot Coal Corp., Peabody
    Energy, Inc. and Rhino Mining Inc.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    113
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The most important factors on which we compete are coal price,
    coal quality and characteristics, transportation costs and
    reliability of supply. Demand for coal and the prices that we
    will be able to obtain for our coal are closely linked to coal
    consumption patterns of the domestic electric generation
    industry and international consumers. These coal consumption
    patterns are influenced by factors beyond our control, including
    demand for electricity, which is significantly dependent upon
    economic activity and summer and winter temperatures in the
    United States, government regulation, technological developments
    and the location, quality, price and availability of competing
    sources of fuel such as natural gas, oil and nuclear sources,
    and alternative energy sources such as hydroelectric power and
    wind.
</DIV>

<A name='172'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Regulation
    and Laws</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Federal, state and local authorities regulate the U.S.&#160;coal
    mining industry with respect to environmental, health and safety
    matters such as employee health and safety, permitting and
    licensing requirements, air and water pollution, plant and
    wildlife protection, and the reclamation and restoration of
    mining properties after mining has been completed. These laws
    and regulations have had, and will continue to have, a
    significant effect on production costs and may impact our
    competitive advantages. Future laws, regulations or orders, as
    well as future interpretations and more rigorous enforcement of
    existing laws, regulations or orders, may substantially increase
    operating costs, result in delays and disrupt operations, the
    extent of which cannot be predicted with any degree of
    certainty. Future laws, regulations or orders may also cause
    coal to become a less attractive source of energy, thereby
    reducing its market share as fuel used to generate electricity.
    Thus, future laws, regulations or enforcement priorities may
    adversely affect our mining operations, cost structure or the
    demand for coal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We endeavor to conduct our mining operations in compliance with
    all applicable federal, state and local laws and regulations.
    However, due in part to the complexity, extent and nature of the
    various regulatory requirements, violations can and do occur
    from time to time. We cannot assure complete compliance at all
    times with all applicable laws and regulations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Mining
    Permits and Approvals</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Numerous federal, state or local governmental permits or
    approvals are required to conduct coal mining and reclamation
    operations. When we apply for these permits and approvals, we
    are required to prepare and present data to governmental
    authorities pertaining to the effect or impact that any proposed
    production or processing of coal may have upon the natural or
    human environment. The authorization and permitting requirements
    imposed by governmental authorities are costly and increasingly
    take more time to obtain and may delay commencement or
    continuation of mining operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to obtain mining permits and approvals from federal and
    state regulatory authorities, mine operators or applicants must
    submit a reclamation plan for restoring the mined land to its
    prior productive or other approved use. Typically, we submit the
    necessary permit applications 12 to 30&#160;months before we
    plan to mine a new area. Some required mining permits are
    becoming increasingly difficult to obtain in a timely manner, or
    at all and, in some instances, we have had to abandon coal in
    certain areas of the application in order to obtain permit
    approvals. The application review process takes longer to
    complete and is increasingly being challenged by
    environmentalists and other advocacy groups, although we are not
    aware of any such challenges to any of our pending permit
    applications.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Violations of federal, state and local laws, regulations or any
    permit or approval issued under such authorization can result in
    substantial fines and penalties, including revocation or
    suspension of mining permits. In certain circumstances, criminal
    sanctions may be imposed for failure to comply with these laws
    in addition to fines and civil penalties.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Surface
    Mining Control and Reclamation Act</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SMCRA establishes mining, reclamation and environmental
    protection standards for all aspects of surface coal mining,
    including the surface effects of underground coal mining. Mining
    operators must obtain SMCRA permits and permit renewals from the
    Office of Surface Mining, or the OSM, or from the applicable
    state
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    114
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    agency if the state has obtained primacy. A state may achieve
    primacy if it develops a regulatory program that is no less
    stringent than the federal program and is approved by OSM. Our
    mines are located in Ohio, Pennsylvania, West Virginia and
    Kentucky, which have primacy to administer the SMCRA program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SMCRA permit provisions include a complex set of requirements,
    which include, among other things, coal exploration, mine plan
    development, topsoil or a topsoil removal alternative, storage
    and replacement, selective handling of overburden materials,
    mine pit backfilling and grading, disposal of excess spoil,
    protection of the hydrologic balance, surface runoff and
    drainage control, establishment of suitable post mining land
    uses and re-vegetation. The process of preparing a mining permit
    application begins by collecting baseline data to adequately
    characterize the pre-mining environmental conditions of the
    permit area. This work is typically conducted by third-party
    consultants with specialized expertise and typically includes
    surveys or assessments of the following: cultural and historical
    resources, geology, soils, vegetation, aquatic organisms,
    wildlife, potential for threatened, endangered or other special
    status species, surface and groundwater hydrology, climatology,
    riverine and riparian habitat and wetlands. The geologic data
    and information derived from the other surveys or assessments
    are used to develop the mining and reclamation plans presented
    in the permit application. The mining and reclamation plans
    address the provisions and performance standards of the
    state&#146;s equivalent SMCRA regulatory program, and are also
    used to support applications for other authorizations or permits
    required to conduct coal mining activities. Also included in the
    permit application is information used for documenting surface
    and mineral ownership, variance requests, public road use,
    bonding information, mining methods, mining phases, other
    agreements that may relate to coal, other minerals, oil and gas
    rights, water rights, permitted areas, and ownership and control
    information required to determine compliance with OSM&#146;s
    Applicant Violator System, including the mining and compliance
    history of officers, directors and principal owners of the
    entity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Once a permit application is prepared and submitted to the
    regulatory agency, it goes through a completeness and technical
    review. Also, before a SMCRA permit is issued, a mine operator
    must submit a bond or otherwise secure the performance of all
    reclamation obligations. After the application is submitted,
    public notice or advertisement of the proposed permit action is
    required, which is followed by a public comment period. It is
    not uncommon for this process to take from 12 to 30&#160;months
    for a SMCRA mine permit application. This variability in time
    frame for permitting is a function of the discretion vested in
    the various regulatory authorities&#146; handling of comments
    and objections relating to the project received from the
    governmental agencies involved and the general public. The
    public also has the right to comment on and otherwise engage in
    the administrative process including at the public hearing and
    through judicial challenges to an issued permit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Federal laws and regulations also provide that a mining permit
    or modification can be delayed, refused or revoked if owners of
    specific percentages of ownership interests or controllers
    (i.e., officers and directors or other entities) of the
    applicant have, or are affiliated with another entity that has
    outstanding violations of SMCRA or state or tribal programs
    authorized by SMCRA. This condition is often referred to as
    being &#147;permit blocked&#148; under the federal Applicant
    Violator Systems, or AVS. Thus, non-compliance with SMCRA can
    provide the bases to deny the issuance of new mining permits or
    modifications of existing mining permits, although we know of no
    basis to be and are not permit-blocked.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have subleased our underground coal reserves at the Tusky
    mining complex to a third party in exchange for an overriding
    royalty. Under our sublease, our sublessee is contractually
    obligated to comply with all federal, state and local laws,
    including the reclamation and restoration of the mined areas by
    grading, shaping and reseeding the soil as required under SMCRA.
    Regulatory authorities may attempt to assign the SMCRA
    liabilities of our sublessee to us if it is not financially
    capable of fulfilling those obligations and it is determined
    that we &#147;own&#148; or &#147;control&#148; the
    sublessee&#146;s mining operation. To our knowledge, no such
    claims have been asserted against us to date. If such claims are
    ever asserted against us, we will contest them vigorously on the
    basis that, among other things, receiving an overriding royalty
    under a sublease does not alone meet the legal or regulatory
    test of &#147;ownership&#148; or &#147;control&#148; so as to
    subject us to the SMCRA liabilities of our sublessee.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    115
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 1983, the OSM adopted the &#147;stream buffer zone
    rule,&#148; or SBZ Rule, which prohibited mining disturbances
    within 100&#160;feet of streams if there would be a negative
    effect on water quality. In December 2008, the OSM finalized a
    revised SBZ Rule, which purported to clarify certain aspects of
    the 1983 SBZ Rule. Several organizations challenged the 2008
    revision to the SBZ Rule in two related actions filed in the
    United States District Court for the District of Columbia. In
    April 2009, the United States filed motions seeking the
    voluntary vacation of the revised SBZ Rule. In June 2009, the
    Interior Department and the U.S.&#160;Army entered into a
    memorandum of understanding on how to protect waterways from
    degradation if the revised SBZ Rule were vacated due to the
    litigation. In August 2009, the District Court denied the
    Government&#146;s motion, and concluded that the revised SBZ
    Rule could not be vacated without following the Administrative
    Procedure Act and other related requirements. On
    November&#160;30, 2009, the OSM published a notice of a proposed
    rulemaking to further revise the SBZ Rule and solicited comments
    until December&#160;30, 2009. The OSM suggested several
    alternative regulatory approaches in the rulemaking notice, and
    indicated that they will prepare a supplemental environmental
    impact study on the proposed revisions prior to adoption. Based
    on the memorandum of understanding and the proposals in the
    notice, the requirements of the revised SBZ Rule, when adopted,
    could be more adverse than the prior SBZ Rule, and may adversely
    affect our business and operations. In addition, Congress has
    proposed legislation in the past and may propose legislation in
    the future to restrict the placement of mining material in
    streams. Such legislation could also have an adverse impact on
    our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the bond requirement for an active or proposed
    permit, the Abandoned Mine Land Fund, which was created by
    SMCRA, imposes a fee on all coal produced. The proceeds of the
    fee are used to restore mines closed or abandoned prior to
    SMCRA&#146;s adoption in 1977. The current fee is $0.315 per ton
    of coal produced from surface mines. In 2009, we recorded
    $1.7&#160;million of expense related to these reclamation fees.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Surety
    Bonds</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    State laws require a mine operator to secure the performance of
    its reclamation obligations required under SMCRA through the use
    of surety bonds or other approved forms of performance security
    to cover the costs the state would incur if the mine operator
    were unable to fulfill its obligations. The cost of surety bonds
    have fluctuated in recent years, and the market terms of these
    bonds have generally become more unfavorable to mine operators.
    These changes in the terms of the bonds have been accompanied at
    times by a decrease in the number of companies willing to issue
    surety bonds. Some mine operators have therefore used letters of
    credit to secure the performance of a portion of our reclamation
    obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we had approximately
    $31.3&#160;million in surety bonds outstanding to secure the
    performance of our reclamation obligations, which were supported
    by approximately $6.9&#160;million in letters of credit.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Mine
    Safety and Health</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stringent health and safety standards have been in effect since
    Congress enacted the Coal Mine Health and Safety Act of 1969.
    The Federal Mine Safety and Health Act of 1977, or the Mine Act,
    significantly expanded the enforcement of safety and health
    standards and imposed safety and health standards on all aspects
    of mining operations. In addition to federal regulatory
    programs, all of the states in which we operate have state
    programs for mine safety and health regulation and enforcement.
    Collectively, federal and state safety and health regulation in
    the coal mining industry is among the most comprehensive systems
    for protection of employee health and safety affecting any
    segment of U.S.&#160;industry. The Mine Act requires mandatory
    inspections of surface and underground coal mines and requires
    the issuance of citations or orders for the violation of a
    mandatory health and safety standard. A civil penalty must be
    assessed for each citation or order issued. Serious violations
    of mandatory health and safety standards may result in the
    issuance of an order requiring the immediate withdrawal of
    miners from the mine or shutting down a mine or any section of a
    mine or any piece of mine equipment. The Mine Act also imposes
    criminal liability for corporate operators who knowingly or
    willfully violates a mandatory health and safety standard, or
    order and provides that civil and criminal penalties may be
    assessed against individual agents, officers and directors who
    knowingly or
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    116
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    willfully violate a mandatory health and safety standard or
    order. In addition, criminal liability may be imposed against
    any person for knowingly falsifying records required to be kept
    under the Mine Act and standards. In response to recent
    underground mine accidents, Congress, in 2006, enacted the Mine
    Improvement and New Emergency Response Act, or MINER Act, which
    imposed additional burdens on coal operators, including, among
    other matters, (i)&#160;obligations related to (a)&#160;the
    development of new emergency response plans that address
    post-accident communications, tracking of miners, breathable
    air, lifelines, training and communication with local emergency
    response personnel, (b)&#160;establishing additional
    requirements for mine rescue teams, and (c)&#160;promptly
    notifying federal authorities of incidents that pose a
    reasonable risk of death and (ii)&#160;increased penalties for
    violations of the applicable federal laws and regulations. The
    penalty regulations promulgated in 2007 as a result of this
    legislation included new heightened penalty categories for
    certain types of violations and have resulted in the imposition
    of penalty assessment amounts that doubled between fiscal years
    2007 and 2008 in the coal industry and are expected to increase.
    In the wake of the 2006 legislation, enforcement scrutiny also
    increased, including more inspection hours at mine sites,
    increased numbers of inspections and increased issuance of the
    number and the severity of enforcement actions. Various states
    also have enacted their own new laws and regulations addressing
    many of these same subjects. Our compliance with these or any
    new mine health and safety regulations could increase our mining
    costs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Black Lung Benefits Revenue Act of 1977 and the Black
    Lung Benefits Reform Act of 1977, as amended in 1981, each coal
    mine operator must pay federal black lung benefits to claimants
    who are current and former employees and also make payments to a
    trust fund for the payment of benefits and medical expenses to
    claimants who last worked in the coal industry prior to
    January&#160;1, 1970. The trust fund is funded by an excise tax
    on production of up to $1.10 per ton for deep-mined coal and up
    to $0.55 per ton for surface-mined coal, neither amount to
    exceed 4.4% of the gross sales price. The excise tax does not
    apply to coal shipped outside the United States. In 2009, we
    recorded $3.1&#160;million of expense related to this excise
    tax. The Affordable Health Choices Act currently being debated
    in the U.S.&#160;Congress proposes potentially significant
    changes to the federal black lung program, including provisions,
    retroactive to 2005, which would (i)&#160;provide an automatic
    survivor benefit paid upon the death of a miner with an awarded
    black lung claim, without requiring proof that the death was due
    to pneumoconiosis and (ii)&#160;establish a rebuttable
    presumption with regard to pneumoconiosis among miners with 15
    or more years of coal mine employment that are totally disabled
    by a respiratory condition. These or similar proposed changes,
    if enacted, could have a material impact on our costs expended
    in association with the federal Black Lung program. In addition,
    we are liable under various state statutes for black lung claims.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Clean
    Air Act</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The federal Clean Air Act and state laws that regulate air
    emissions affect coal mining operations both directly and
    indirectly. Direct impacts on coal mining and processing
    operations include Clean Air Act permitting requirements and
    control requirements for particulate matter, which includes
    fugitive dust from roadways, parking lots, and equipment such as
    conveyors and storage piles. The Clean Air Act indirectly
    affects coal mining operations by extensively regulating the
    emissions of particulate matter, sulfur dioxide, nitrogen
    oxides, carbon monoxide, ozone, mercury and other compounds
    emitted by coal-fired power plants. In addition to greenhouse
    gas emissions discussed below, air emission control programs
    that affect our operations, directly or indirectly, include, but
    are not limited to, the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Acid Rain.</I>&#160;&#160;Title&#160;IV of the Clean Air Act
    requires reductions of sulfur dioxide emissions by electric
    utilities. Affected power plants have sought to reduce sulfur
    dioxide emissions by switching to lower sulfur fuels, installing
    pollution control devices, reducing electricity generating
    levels or purchasing or trading sulfur dioxide emissions
    allowances. These efforts will make it more costly to operate
    coal-fired power plants and could make coal a less attractive
    fuel alternative in the planning and building of power plants in
    the future.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Particulate Matter.</I>&#160;&#160;The Clean Air Act requires
    the EPA to set standards, referred to as National Ambient Air
    Quality Standards, or NAAQS, for certain pollutants. Areas that
    are not in compliance (referred to as &#147;non-attainment
    areas&#148;) with these standards must take steps to reduce
    emissions levels. Although our operations are not currently
    located in non-attainment areas, should any of the
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    117
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    areas in which we operate be designated as non-attainment areas
    for particulate matter, our mining operations may be directly
    affected by any NAAQS implementation.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Ozone.</I>&#160;&#160;The EPA issued revised ozone NAAQS
    imposing more stringent limits that took effect in May 2008.
    Nitrogen oxides, which are a by-product of coal combustion, are
    classified as an ozone precursor. Under the revised ozone NAAQS,
    significant additional emissions control expenditures may be
    required at coal-fired power plants. Attainment dates for the
    new standards range between 2013 and 2030, depending on the
    severity of the non-attainment. In July 2009, the
    U.S.&#160;Court of Appeals for the District of Columbia vacated
    part of a rule implementing the ozone NAAQs and remanded certain
    other aspects of the rule to the EPA for further consideration.
    Notwithstanding the decision, we expect that additional
    emissions control requirements may be imposed on new and
    expanded coal-fired power plants and industrial boilers in the
    years ahead. The combination of these actions may impact demand
    for coal nationally, the impact of which we are unable to
    predict to any reasonable degree of certainty.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>NOx, or Nitrogen Oxides State Implementation Plan, or SIP
    Call</I>.&#160;&#160;The NOx SIP Call program was established by
    the EPA in October 1998 to reduce the transport of nitrogen
    oxide and ozone on prevailing winds from the Midwest and South
    to states in the Northeast that alleged they could not meet
    federal air quality standards because of NOx emissions. The
    program is designed to reduce NOx emissions by one million tons
    per year in 22 eastern states and the District of Columbia. As a
    result of this program, many power plants have been or will be
    required to install additional emission control measures, such
    as selective catalytic reduction, or SCR, devices. Installation
    of additional emission control measures will make it more costly
    to operate coal-fired power plants, which could make coal a less
    competitive fuel.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Clean Air Interstate Rule.</I>&#160;&#160;The EPA&#146;s CAIR
    calls for power plants in 28 eastern states and the District of
    Columbia to reduce emission levels of sulfur dioxide and
    nitrogen oxide pursuant to a cap and trade program similar to
    the system now in effect for acid rain. In July 2008, the
    U.S.&#160;Court of Appeals for the District of Columbia Circuit
    vacated the EPA&#146;s CAIR in its entirety and directed the EPA
    to commence new rule-making. After a petition for rehearing, the
    court ruled in December 2008 that to completely vacate CAIR
    would sacrifice public health and environmental benefits and
    that CAIR should remain in effect while the EPA modifies the
    rule. It is uncertain how the EPA will proceed to modify CAIR,
    although the EPA has indicated that it intends to propose a
    replacement rule in 2010 and to issue a final rule by early
    2011. Under CAIR and any replacement rule, some coal-fired power
    plants might be required to install additional pollution control
    equipment, such as scrubbers
    <FONT style="white-space: nowrap">and/or</FONT> SCR
    equipment that could lead plants with these controls to become
    less sensitive to the sulfur-content of coal and more sensitive
    to delivered price, thereby making our high sulfur coal more
    competitive.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Mercury.</I>&#160;&#160;In February 2008, the U.S.&#160;Court
    of Appeals for the District of Columbia Circuit vacated the
    EPA&#146;s Clean Air Mercury Rule, or CAMR, which had
    established a cap and trade program to reduce mercury emissions
    from power plants. At present, there are no federal regulations
    that require monitoring and reducing of mercury emissions at
    existing power plants. As a result of the decision to vacate the
    CAMR, in February 2009 the EPA announced that it would regulate
    mercury emissions by issuing Maximum Achievable Control
    Technology standards, or MACT, that will likely impose stricter
    limitations on mercury emissions from power plants than the
    vacated CAMR. The EPA is under a court deadline to issue a final
    rule requiring MACT for power plants by November, 2011. In
    conjunction with these efforts, on December&#160;24, 2009, EPA
    approved an Information Collection Request (ICR) requiring all
    US power plants with coal-or oil-fired electric generating units
    to submit emissions information for use in developing air toxic
    emissions standards. EPA has stated that it intends to propose
    air toxic emissions standards for coal- and oil-fired electric
    generating units by March&#160;10, 2011. In the meantime,
    <FONT style="white-space: nowrap">case-by-case</FONT>
    MACT determinations for mercury may be required for new and
    reconstructed coal-fired power plants. Apart from CAMR, several
    states have enacted or proposed regulations requiring reductions
    in mercury emissions from coal-fired power plants, and federal
    legislation to reduce mercury emissions from power plants has
    been proposed. The Obama
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    118
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    Administration has also indicated a desire to begin negotiations
    on an international treaty to reduce mercury pollution. More
    stringent regulation of mercury emissions by the EPA, states,
    Congress, or pursuant to an international treaty may decrease
    the future demand for coal, but we are unable to predict the
    magnitude of any such impact with any reasonable degree of
    certainty.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are lawsuits pending or threatened legal actions that have
    named coal producers as defendants for personal injury and
    property damage resulting from mercury emissions from coal-fired
    plants (e.g. by entering human pathways of exposure).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Regional Haze.</I>&#160;&#160;The EPA has initiated a
    regional haze program designed to protect and improve visibility
    at and around national parks, national wilderness areas and
    international parks. This program may result in additional
    emissions restrictions from new coal-fired power plants whose
    operation may impair visibility at and near such federally
    protected areas. This program may also require certain existing
    coal-fired power plants to install additional control measures
    designed to limit haze-causing emissions, such as sulfur
    dioxide, nitrogen oxides, ozone and particulate matter. These
    limitations could also affect the future market for coal, to the
    extent of which we are unable to predict with any reasonable
    degree of certainty.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>New Source Review or, or NSR.</I>&#160;&#160;A number of
    pending regulatory changes and court actions will affect the
    scope of the EPA&#146;s NSR program, which requires, among other
    emission sources, new coal-fired power plants and certain
    modifications to existing coal-fired power plants to install the
    same air emissions control equipment as new plants. The changes
    to the NSR program may impact demand for coal nationally, but we
    are unable to predict the magnitude of any such impact with any
    reasonable degree of certainty.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Climate
    Change</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Carbon dioxide is a &#147;greenhouse gas,&#148; the man-made
    emissions of which are of major concern under any regulatory
    framework intended to control climate change or prevent global
    warming. Carbon dioxide is a by-product of the combustion
    process, a primary source of which are coal-fired power plants.
    In 2005, the Kyoto Protocol to the 1992 United Nations Framework
    Convention on Climate Change, which establishes a binding set of
    emission targets for greenhouse gases, became binding on all
    those countries that had ratified it. To date, the U.S.&#160;has
    not ratified the Kyoto Protocol, which expires in 2012. The
    United States is participating in international discussions
    currently underway to develop a treaty to replace the Kyoto
    Protocol after its expiration in 2012. Any replacement treaty or
    other international arrangement requiring additional reductions
    in greenhouse gas emissions will have a potentially significant
    impact on the demand for coal if the United States were to adopt
    such requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Future regulation of greenhouse gases in the United States could
    occur pursuant to future U.S.&#160;treaty commitments, new
    domestic legislation that may impose a carbon emissions tax, a
    <FONT style="white-space: nowrap">cap-and-trade</FONT>
    program or other programs aimed at carbon reduction, or by
    regulatory programs that may be established by the EPA under its
    existing authority. Congress is actively considering various
    proposals to reduce greenhouse gas emissions, mandate
    electricity suppliers to use renewable energy sources to
    generate a certain percentage of power, promote the use of clean
    energy and require energy efficiency measures. In June 2009, the
    House of Representatives passed a comprehensive climate change
    and energy bill, the American Clean Energy and Security Act, and
    the Senate has considered similar legislation that would, among
    other things, impose a nationwide cap on greenhouse gas
    emissions and require major sources, including coal-fired power
    plants, to obtain &#147;allowances&#148; to meet that cap. The
    Senate is also crafting a compromise bill that may favor
    expansion of domestic energy production and limit the imposition
    of a cap and trade approach. Passage of such comprehensive
    climate change and energy legislation could impact the demand
    for coal. Any reduction in the amount of coal consumed by North
    American electric power generators could reduce the price of
    coal that we mine and sell, thereby reducing our revenues and
    have a material adverse affect on our business and the results
    of our operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Even in the absence of new federal legislation, greenhouse gas
    emissions may be regulated in the future by the EPA pursuant to
    the Clean Air Act. In response to the 2007 U.S.&#160;Supreme
    Court ruling
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    119
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Massachusetts&#160;v. EPA </I>that the EPA has authority to
    regulate carbon dioxide emissions under the Clean Air Act, the
    EPA has taken several steps towards implementing regulations
    regarding the emission of greenhouse gases. In December 2009,
    the EPA issued a finding that carbon dioxide and certain other
    greenhouse gases emitted by motor vehicles endanger public
    health and the environment. This finding allows the EPA to begin
    regulating greenhouse gas emissions under existing provisions of
    the Clean Air Act. In anticipation of this finding, in October
    2009, the EPA published a proposed rule that makes it clear that
    the EPA anticipates regulating the emission of greenhouse gases
    from certain stationary sources with an initial focus on
    facilities that release more than 25,000 tons of greenhouse
    gases a year, and which would require best available control
    technology for greenhouse gas emissions whenever such facilities
    are built or significantly modified. If the EPA were to set
    emission limits for carbon dioxide from electric utilities, the
    amount of coal our customers purchase from us could decrease.
    Moreover, in October 2009, the EPA published a final rule
    requiring certain emitters of greenhouse gases, including
    coal-fired power plants, to monitor and report their greenhouse
    gas emissions to the EPA beginning in 2011 for emissions
    occurring in 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Many states and regions have adopted greenhouse gas initiatives
    and certain governmental bodies have or are considering the
    imposition of fees or taxes based on the emission of greenhouse
    gases by certain facilities. In December 2005, seven
    northeastern states (Connecticut, Delaware, Maine, New
    Hampshire, New Jersey, New York, and Vermont) signed the
    Regional Greenhouse Gas Initiative agreement, or RGGI, calling
    for implementation of a cap and trade program by 2009 aimed at
    reducing carbon dioxide emissions from power plants in the
    participating states. The RGGI program calls for signatory
    states to stabilize carbon dioxide emissions to current levels
    from 2009 to 2015, followed by a 2.5% reduction each year from
    2015 through 2018. Since its inception, several additional
    northeastern states and Canadian provinces have joined as
    participants or observers. RGGI has begun holding quarterly
    carbon dioxide allowance auctions for its initial three-year
    compliance period from January&#160;1, 2009 to December&#160;31,
    2011 to allow utilities to buy allowances to cover their carbon
    dioxide emissions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Midwestern states and Canadian provinces have also adopted
    initiatives to reduce and monitor greenhouse gas emissions. In
    November 2007, Illinois, Indiana, Iowa, Kansas, Michigan,
    Minnesota, Ohio, South Dakota and Wisconsin and Manitoba signed
    the Midwestern Greenhouse Gas Reduction Accord to develop and
    implement steps to reduce greenhouse gas emissions. The draft
    recommendations, released in June 2009, call for a 20% reduction
    below 2005 emissions levels by 2020 and additional reductions to
    80% below 2005 emissions levels by 2080. Climate change
    initiatives are also being considered or enacted in some western
    states.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Also, two U.S.&#160;federal appeals courts have allowed lawsuits
    by individuals, state attorneys general and others to pursue
    claims against major utility, coal, oil and chemical companies
    on the basis that those companies have created a public nuisance
    due to their emissions of carbon dioxide.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to direct regulation of greenhouse gases,
    28&#160;states have adopted &#147;renewable portfolio
    standards,&#148; which require electric utilities to obtain a
    certain percentage of their electric generation portfolio from
    renewable resources by a certain date. These standards range
    generally from 10% to 30%, over time periods that generally
    extend from the present until between 2020 and 2030. An
    additional five states have renewable portfolio standard goals
    that are not yet legal requirements. Other states may adopt
    similar requirements, and federal legislation is a possibility
    in this area. To the extent these requirements affect our
    current and prospective customers, they may reduce the demand
    for coal-fired power, and may affect long-term demand for our
    coal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These and other current or future climate change rules, court
    orders or other legally enforceable mechanisms may in the future
    require, additional controls on coal-fired power plants and
    industrial boilers and may even cause some users of coal to
    switch from coal to a lower carbon dioxide emitting fuels or
    shut-down coal-fired power plants. There can be no assurance at
    this time that a carbon dioxide cap and trade program, a carbon
    tax or other regulatory regime, if implemented by the states in
    which our customers operate or at the federal level, or future
    court orders or other legally enforceable mechanisms, will not
    affect the future market for coal in those regions. The
    permitting of new coal-fired power plants has also recently been
    contested by some state regulators and environmental
    organizations based on concerns relating to greenhouse gas
    emissions.
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    120
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Increased efforts to control greenhouse gas emissions could
    result in reduced demand for coal. If mandatory restrictions on
    carbon dioxide emissions are imposed, the ability to capture and
    store large volumes of carbon dioxide emissions from coal-fired
    power plants may be a key mitigation technology to achieve
    emissions reductions while meeting projected energy demands. A
    number of recent legislative and regulatory initiatives to
    encourage the development and use of carbon capture and storage
    technology have been proposed or enacted. For example, the
    U.S.&#160;Department of Energy announced in May 2009 that it
    would provide $2.4&#160;billion of federal stimulus funds under
    the ARRA to expand and accelerate the commercial deployment of
    large-scaled CCS technology. However, there can be no assurances
    that cost-effective CCS capture and storage technology will
    become commercially feasible in the near future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Clean
    Water Act</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The CWA and corresponding state and local laws and regulations
    affect coal mining operations by restricting the discharge of
    pollutants, including the discharge of dredged or fill
    materials, into waters of the United States. The CWA provisions
    and associated state and federal regulations are complex and
    subject to amendments, legal challenges and changes in
    implementation. Legislation that seeks to clarify the scope of
    CWA jurisdiction is under consideration by Congress. Recent
    court decisions, regulatory actions and proposed legislation
    have created uncertainty over CWA jurisdiction and permitting
    requirements that could either increase or decrease the cost and
    time we expend on CWA compliance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    CWA requirements that may directly or indirectly affect our
    operations include the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Wastewater Discharge.</I>&#160;&#160;Section&#160;402 of the
    CWA regulates the discharge of &#147;pollutants&#148; into
    navigable waters of the United States. The National Pollutant
    Discharge Elimination System, or NPDES, requires a permit for
    any such discharges and entails regular monitoring, reporting
    and compliance with performance standards that govern
    discharges. Failures to comply with the CWA or the NPDES permits
    can lead to the imposition of penalties, compliance costs and
    delays in coal production.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The CWA and corresponding state laws also protect waters that
    states have designated for special protections including those
    designated as: impaired (i.e., as not meeting present water
    quality standards) through Total Maximum Daily Load, or TMDL,
    regulations; and &#147;high quality/exceptional use&#148;
    streams through anti-degradation regulations which restrict or
    prohibit discharges which result in degradation. Other
    requirements require the treatment of discharges from coal
    mining properties for non-traditional pollutants, such as
    chlorides, selenium and dissolved solids; and
    &#147;protecting&#148; streams, wetlands, other regulated water
    sources and associated riparian lands from surface mining
    <FONT style="white-space: nowrap">and/or</FONT> the
    surface impacts of underground mining. Individually and
    collectively, these requirements may cause us to incur
    significant additional costs that could adversely affect our
    operating results, financial condition and cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    <I>Dredge and Fill Permits.</I>&#160;&#160;Many mining
    activities, including the development of settling ponds and
    other impoundments, may require a Section&#160;404 permit from
    the Corps, prior to conducting such mining activities where they
    involve discharges of &#147;fill&#148; into navigable waters of
    the United States. The Corps is empowered to issue
    &#147;nationwide&#148; permits for specific categories of
    filling activities that are determined to have minimal
    environmental adverse effects in order to save the cost and time
    of issuing individual permits under Section&#160;404 of the
    Clean Water Act. Using this authority, the Corps issued NWP 21,
    which authorizes the disposal of
    <FONT style="white-space: nowrap">dredge-and-fill</FONT>
    material from mining activities into the waters of the United
    States. Individual Section&#160;404 permits are required for
    activities determined to have more significant impacts to waters
    of the United States.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since 2003, environmental groups have pursued litigation
    primarily in West Virginia and Kentucky challenging the validity
    of NWP 21 and various individual Section&#160;404 permits
    authorizing valley fills associated with surface coal mining
    operations (primarily mountain-top removal operations). This
    litigation has resulted in delays in obtaining these permits and
    has increased permitting costs. The most recent major decision
    in this line of litigation is the opinion of the U.S. Court of
    Appeals for the Fourth Circuit in <I>Ohio Valley Environmental
    Council&#160;v. Aracoma Coal Company</I>, 556 F.3d
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    121
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    177 (2009) (<I>Aracoma</I>), issued on February&#160;13, 2009.
    In <I>Aracoma </I>the Court rejected all of the substantive
    challenges to the Section&#160;404 permits involved in the case
    primarily by deferring to the expertise of the Corps in review
    of the permit applications. We currently have only one pending
    NWP 21 authorization, and we do not anticipate seeking NWP 21
    authorizations in the future. As a result, we do not believe the
    outcome of this case will be material to us. However, the
    U.S.&#160;Supreme Court granted certiorari for this case on
    August&#160;26, 2009, and it remains pending. If reversed, such
    a result could have an adverse effect on the surface mining
    industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After this decision was published, however, the EPA undertook
    several initiatives to address the issuance of Section&#160;404
    permits for coal mining activities in the Eastern
    U.S.&#160;First, the EPA began to comment on Section&#160;404
    permit applications pending before the Corps raising many of the
    same issues decided in favor of the coal industry in
    <I>Aracoma</I>. Many of the EPA&#146;s comment letters were
    submitted long after the end of the EPA&#146;s comment period
    based on what the EPA contended was &#147;new&#148; information
    on the impacts of valley fills on stream water quality
    immediately downstream of valley fills. These letters have
    created regulatory uncertainty regarding the issuance of
    Section&#160;404 permits for coal mining operations and have
    substantially expanded the time required for issuance of these
    permits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the Corps, the EPA and the Department of the
    Interior announced an interagency action plan for an
    &#147;enhanced review&#148; of any project that requires both a
    SMCRA and a CWA permit designed to reduce the harmful
    environmental consequences of mountain-top mining in the
    Appalachian region. As part of this interagency memorandum of
    understanding, the Corps proposed to suspend and modify NWP 21
    in the Appalachian region of Kentucky, Ohio, Pennsylvania,
    Tennessee, Virginia and West Virginia to prohibit its use to
    authorize discharges of fill material into waters of the United
    States for mountain-top mining. Two of our applications for
    permits are currently being reviewed by EPA under this enhanced
    review procedure even though the mining activities in question
    do not utilize mountain-top mining, a method of mining we do not
    employ. Collectively, the permits covered by these applications
    cover 1.1&#160;million tons of our proven and probable coal
    reserves.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The EPA is also taking a more active role in its review of NPDES
    permit applications for coal mining operations in Appalachia,
    and announced in September 2009 that it was delaying the
    issuance of 74 Section&#160;404 permits in central Appalachia.
    This is especially true in West&#160;Virginia, where the EPA
    plans to review all applications for NPDES permits even though
    the State of West Virginia is authorized to issue NPDES permits
    in West Virginia. These initiatives have extended the time
    required to obtain permits for coal mining and we anticipate
    further delays in obtaining permits and that the costs
    associated with obtaining and complying with those permits will
    increase substantially. Additionally, while it is unknown
    precisely what other future changes will be implemented as a
    result of the interagency action plan, any future changes could
    further restrict our ability to obtain other new permits or to
    maintain existing permits.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Resource
    Conservation and Recovery Act</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Resource Conservation and Recovery Act, or RCRA, was enacted
    in 1976 to establish requirements for the management of
    hazardous wastes from the point of generation through treatment
    of disposal. RCRA does not apply to most of the wastes generated
    at coal mines, overburden and coal cleaning wastes, because they
    are not considered hazardous wastes as EPA applies that term.
    Only a small portion of the total amount of wastes generated at
    a mine are regulated as hazardous wastes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although this act has the potential to apply to wastes from the
    combustion of coal, the EPA determined that coal combustion
    wastes do not warrant regulation as hazardous wastes under RCRA
    in May 2000. Most state solid waste laws also regulate coal
    combustion wastes as non-hazardous wastes. The EPA is currently
    considering whether national non-hazardous waste regulations
    under RCRA are warranted for certain wastes generated from coal
    combustion, such as coal ash, when used as mine-fill.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    122
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Comprehensive
    Environmental Response, Compensation and Liability
    Act</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Comprehensive Environmental Response, Compensation and
    Liability Act, CERCLA or Superfund, and similar state laws
    affect coal mining operations by, among other things, imposing
    cleanup requirements for threatened or actual releases of
    hazardous substances. Under CERCLA and similar state laws, joint
    and several liability may be imposed on waste generators, site
    owners, lessees and others regardless of fault or the legality
    of the original disposal activity. Although the EPA excludes
    most wastes generated by coal mining and processing operations
    from the hazardous waste laws, such wastes can, in certain
    circumstances, constitute hazardous substances for the purposes
    of CERCLA. In addition, the disposal, release or spilling of
    some products used by coal companies in operations, such as
    chemicals, could trigger the liability provisions of CERCLA or
    similar state laws. Thus, we may be subject to liability under
    CERCLA and similar state laws for coal mines that we currently
    own, lease or operate or that we or our predecessors have
    previously owned, leased or operated, and sites to which we or
    our predecessors sent waste materials. This includes the Tusky
    mining complex where we have subleased our underground coal
    reserves to a third party in exchange for an overriding royalty.
    We may be liable under CERCLA or similar state laws for the
    cleanup of hazardous substance contamination and natural
    resource damages at sites where we own surface rights.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Endangered
    Species Act</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The federal Endangered Species Act, or ESA, and counterpart
    state legislation protect species threatened with possible
    extinction. The U.S.&#160;Fish and Wildlife Service, or USFWS,
    works closely with the OSM and state regulatory agencies to
    ensure that species subject to the ESA are protected from
    mining-related impacts. A number of species indigenous to the
    areas in which we operate, specifically the Indiana bat, are
    protected under the ESA, and compliance with ESA requirements
    could have the effect of prohibiting or delaying us from
    obtaining mining permits. These requirements may also include
    restrictions on timber harvesting, road building and other
    mining or agricultural activities in areas containing the
    affected species or their habitats. Should more stringent
    protective measures be applied, this could result in increased
    operating costs, heightened difficulty in obtaining future
    mining permits, or the need to implement additional mitigation
    measures.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Use of
    Explosives</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We use third party contractors for blasting services and our
    surface mining operations are subject to numerous regulations
    relating to blasting activities. Pursuant to these regulations,
    we incur costs to design and implement blast schedules and to
    conduct pre-blast surveys and blast monitoring. In addition, the
    storage of explosives is subject to regulatory requirements. We
    presently do not engage in blasting activities. All of our
    blasting activities are conducted by independent contractors
    that use certified blasters.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Environmental Laws and Matters</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are required to comply with numerous other federal, state and
    local environmental laws and regulations in addition to those
    previously discussed. These additional laws include, for
    example, the Safe Drinking Water Act, the Toxic Substance
    Control Act and the Emergency Planning and Community
    <FONT style="white-space: nowrap">Right-to-Know</FONT>
    Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We maintain coal refuse areas and slurry impoundments at our
    Tuscarawas County and Muhlenberg County mining complexes. Such
    areas and impoundments are subject to extensive regulation. One
    of those impoundments overlies a mined out area, which can pose
    a heightened risk of structural failure and of damages arising
    out of such failure. When a slurry impoundment experiences a
    structural failure, it could release large volumes of coal
    slurry into the surrounding environment, which in turn can
    result in extensive damage to the environment and natural
    resources, such as bodies of water. A failure may also result in
    civil or criminal fines, penalties, personal injuries and
    property damages, and damage to wildlife or natural resources.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    123
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='173'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Office
    Facilities</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We lease and own office space in Columbus and Coshocton, Ohio,
    respectively, that is used by our executive and administrative
    employees. Our lease expires in 2015.
</DIV>

<A name='174'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employees</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To carry out our operations, our general partner employed over
    800&#160;full-time employees as of December&#160;31, 2009. None
    of these employees are subject to collective bargaining
    agreements or are members of any unions. We believe that we have
    good relations with these employees, and we continually seek
    their input with respect to our operations. Since our inception,
    we have had no history of work stoppages or union organizing
    campaigns.
</DIV>

<A name='175'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Legal
    Proceedings</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although we are, from time to time, involved in litigation and
    claims arising out of our operations in the normal course of
    business, we do not believe that we are a party to any
    litigation that will have a material adverse impact on our
    financial condition or results of operations. We are not aware
    of any significant legal or governmental proceedings against us,
    or contemplated to be brought against us. We maintain such
    insurance policies with insurers in amounts and with coverage
    and deductibles as our general partner believes are reasonable
    and prudent. However, we cannot assure you that this insurance
    will be adequate to protect us from all material expenses
    related to potential future claims for personal and property
    damage or that these levels of insurance will be available in
    the future at economical prices.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    124
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='176'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are managed and operated by the directors and executive
    officers of our general partner, Oxford Resources GP, LLC. Our
    general partner is not elected by our unitholders and will not
    be subject to re-election in the future. C&#038;T Coal owns
    33.7% of the ownership interests in our general partner and AIM
    Oxford owns the remaining 66.3% of the ownership interests in
    our general partner. Oxford Resources GP has a board of
    directors, and our unitholders are not entitled to elect the
    directors or directly or indirectly participate in our
    management or operations. Charles C. Ungurean, the President and
    Chief Executive Officer of our general partner and a member of
    the board of directors of our general partner, and Thomas T.
    Ungurean, the Senior Vice President, Equipment, Procurement and
    Maintenance of our general partner, own all of the equity
    interests in C&#038;T Coal. In addition, certain directors of
    our general partner are principals of AIM and have ownership
    interests in AIM. Our general partner owes certain fiduciary
    duties to our unitholders as well as a fiduciary duty to its
    owners. Our general partner will be liable, as general partner,
    for all of our debts (to the extent not paid from our assets),
    except for indebtedness or other obligations that are made
    specifically nonrecourse to it. Whenever possible, we intend to
    incur indebtedness that is nonrecourse to our general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement provides for the Conflicts Committee,
    as circumstances warrant, to review conflicts of interest
    between us and our general partner or between us and affiliates
    of our general partner. The Conflicts Committee, which will
    consist solely of one independent director, will determine if
    the resolution of a conflict of interest that has been presented
    to it by our general partner is fair and reasonable to us. The
    members of the Conflicts Committee may not be executive officers
    or employees of our general partner or directors, executive
    officers or employees of its affiliates. In addition, the
    members of the Conflicts Committee must meet the independence
    and experience standards established by the New York Stock
    Exchange and the Exchange Act. Any matters approved by the
    Conflicts Committee will be conclusively deemed to be fair and
    reasonable to us, approved by all of our partners and not a
    breach by our general partner of any duties it may owe us or our
    unitholders. In addition, we will have an audit committee, or
    Audit Committee, that complies with the New York Stock Exchange
    requirements, and we will have a compensation committee, or
    Compensation Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Even though most companies listed on the New York Stock Exchange
    are required to have a majority of independent directors serving
    on the board of directors of the listed company, the New York
    Stock Exchange does not require a listed limited partnership
    like us to have a majority of independent directors on the board
    of directors of its general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Gerald A. Tywoniuk, along with two other independent board
    members to be appointed, will serve as the members of the Audit
    Committee. Mr. Tywoniuk serves as the chair of the Audit
    Committee. In compliance with the rules of the New York Stock
    Exchange, the members of the board of directors named below will
    appoint to the Audit Committee one additional independent member
    within 90&#160;days of the listing and one additional
    independent member within twelve months of the listing.
    Thereafter, our general partner is generally required to have at
    least three independent directors serving on its board at all
    times.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Brian D. Barlow, Matthew P. Carbone and Gerald A. Tywoniuk serve
    as the members of the Compensation Committee. Mr.&#160;Barlow
    serves as the chair of the Compensation Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Directors are appointed for a term of one year and hold office
    until their successors have been elected or qualified or until
    the earlier of their death, resignation, removal or
    disqualification. Officers serve at the
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    125
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    discretion of the board. The following table shows information
    for the directors and executive officers of our general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="58%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Age</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Position</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    George E. McCown
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    74
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chairman of the Board
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charles C. Ungurean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    60
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Director, President and Chief Executive Officer
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jeffrey M. Gutman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    44
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Senior Vice President, Chief Financial Officer and Treasurer
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gregory J. Honish
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    53
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Senior Vice President, Operations
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thomas T. Ungurean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    58
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Senior Vice President, Equipment, Procurement and Maintenance
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael B. Gardner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    55
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Secretary and General Counsel
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Denise M. Maksimoski
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    35
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Senior Director of Accounting
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Brian D. Barlow
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    39
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Matthew P. Carbone
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    43
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gerald A. Tywoniuk
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    48
</TD>
<TD>&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>George E. McCown </I>was elected Chairman of the board of
    directors of our general partner in August 2007. Mr.&#160;McCown
    has been a Managing Director of AIM since he co-founded AIM in
    July 2006. Additionally, Mr.&#160;McCown has been a Managing
    Director of McCown De Leeuw&#160;&#038; Co., or MDC, a private
    equity firm based in Foster City, California that specializes in
    buying and building industry-leading middle-market companies in
    partnership with management, since he co-founded MDC in 1983.
    Mr.&#160;McCown is Chairman of the board of directors of the
    general partner of Tunnel Hill Partners, an affiliate of AIM and
    C&#038;T Coal. Mr.&#160;McCown received an MBA from Harvard
    University and a B.S. in mechanical engineering from Stanford
    University, where he served as a trustee from 1980 to 1985 and
    chaired the Finance Committee and Investment Policy Subcommittee
    of Stanford&#146;s board of trustees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;McCown&#146;s over 40&#160;years of experience in
    buying and building companies, as well as his in-depth knowledge
    of the coal industry generally and our partnership in
    particular, provide him with the necessary skills to be a member
    of the board of directors of our general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Charles C. Ungurean </I>was elected President and Chief
    Executive Officer and a member of the board of directors of our
    general partner in August 2007. In 1985, Mr.&#160;Ungurean
    co-founded our predecessor and wholly owned subsidiary, Oxford
    Mining Company. He served as President and Treasurer of our
    predecessor from 1985 to August&#160;2007. He has served as the
    President and Chief Executive Officer of our general partner
    since its formation in August&#160;2007. Mr.&#160;Ungurean
    currently serves on the board of directors of the National
    Mining Association. In addition, Mr.&#160;Ungurean served as
    Chairman of the Ohio Coal Association from July 2002 to July
    2004. Mr.&#160;Ungurean is the brother of Thomas T. Ungurean,
    the Senior Vice President, Equipment, Procurement and
    Maintenance of our general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Ungurean&#146;s 37&#160;years of experience in the coal
    industry, over 25 of which have been spent running our
    operations or the operations of our predecessor and wholly owned
    subsidiary, Oxford Mining Company, provide him with the
    necessary skills to be a member of the board of directors of our
    general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Jeffrey M. Gutman </I>has served as Senior Vice President,
    Chief Financial Officer and Treasurer of our general partner
    since April 2008. Prior to joining us, from 1991 to March 2008,
    Mr.&#160;Gutman served in a number of positions with The
    Williams Companies, Inc., an integrated natural gas company
    based in Tulsa, Oklahoma. His positions at the Williams
    Companies included Director of Capital Services from February
    1998 to April 2000, Director of Structured Finance from April
    2000 to December 2002, Chief Financial Officer of Gulf Liquids,
    a wholly-owned subsidiary of the Williams Companies, from
    December 2002 to December 2005, Director of Planning&#160;&#038;
    Market Analysis from April 2005 to February 2008, and Commercial
    Development from December 2005 until joining our general partner
    in April 2008. Prior to joining the Williams Companies,
    Mr.&#160;Gutman was with Deloitte&#160;&#038; Touche, LLP in
    their Tulsa office. Mr.&#160;Gutman is a certified public
    accountant in Oklahoma and holds a B.S. in Business
    Administration in Accounting from Oklahoma State University.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    126
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Gregory J. Honish </I>has served as Senior Vice President,
    Operations of our general partner since March 2009.
    Mr.&#160;Honish has served in other capacities with us and our
    predecessor since January 1999, including Vice President, Mining
    and Business Development from September 2007 to March 2009 and
    Senior Mining Engineer from January 1999 to September 2007.
    Mr.&#160;Honish has held a balanced spectrum of engineering,
    operations and management positions in the coal mining industry
    during his 30&#160;year professional career at mines in Northern
    Appalachia, Central Appalachia, the Illinois Basin and the PRB.
    He is a Licensed Professional Engineer in Ohio and West Virginia
    and a Certified Surface Mine Foreman in Ohio and Wyoming.
    Mr.&#160;Honish holds a B.S. in Mining Engineering from the
    University of Wisconsin.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Thomas T. Ungurean </I>has served as Senior Vice President,
    Equipment, Procurement and Maintenance of our general partner
    since March 2010, prior to which he was Vice President of
    Equipment from August 2007 to February 2010. In 1985,
    Mr.&#160;Ungurean co-founded our predecessor and wholly owned
    subsidiary, Oxford Mining Company. Since then he has served in
    various capacities with our predecessor, including Vice
    President and Secretary from September 2000 to August 2007.
    Mr.&#160;Ungurean is the brother of Charles C. Ungurean, the
    President and Chief Executive Officer and a member of the board
    of directors of our general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Michael B. Gardner </I>has served as Secretary and General
    Counsel of our general partner since September 2007. Prior to
    joining us, from June 2004 until May 2007, Mr.&#160;Gardner
    served as Associate General Counsel of Murray Energy
    Corporation, the largest privately-owned coal mining company in
    the United States. While at Murray Energy, Mr.&#160;Gardner
    served as an officer of several Murray Energy subsidiaries,
    including Vice President of UMCO Energy, Inc. and Secretary of
    UMCO Energy, Inc., Maple Creek Mining, Inc., Maple Creek
    Processing, Inc., The Ohio Valley Coal Company, The Ohio Valley
    Transloading Company, Ohio Valley Resources, Inc., and Sunburst
    Resources, Inc., and represented these entities in a variety of
    corporate, financial, real property, labor, litigation,
    environmental, health, safety, governmental affairs and public
    relations matters. Mr.&#160;Gardner is a licensed attorney in
    Ohio with more than 30&#160;years of experience in the coal
    industry and in environmental regulatory compliance management.
    He is an alternate member of the Board of Directors of the Ohio
    Coal Association. Mr.&#160;Gardner received a J.D. from Case
    Western Reserve University, an MBA from Ashland University and a
    B.S. in Environmental Biology from Ohio University.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Denise M. Maksimoski </I>has served as Senior Director of
    Accounting of our general partner since December 2009, prior to
    which she was Director, Financial Reporting and General
    Accounting from August 2008 to December 2009. Prior to joining
    us, from 1997 to 2008 Ms.&#160;Maksimoski was with
    Deloitte&#160;&#038; Touche, LLP in Washington, D.C. and
    Columbus, Ohio in various positions including most recently as
    an Audit Senior Manager from August 2005 to August 2008 and as
    an Audit Manager from August 2003 to August 2005. While at
    Deloitte, Ms.&#160;Maksimoski gained extensive SEC reporting
    experience through leading large audit teams on public clients
    primarily in the energy and financial services industries.
    Ms.&#160;Maksimoski is a certified public accountant in the
    states of Ohio, Maryland and Virginia and in the District of
    Columbia. She received a B.A. degree in Accounting and Actuarial
    Studies from Thiel College.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Brian D. Barlow </I>was elected as a member of the board of
    directors of our general partner in August 2007. Mr.&#160;Barlow
    has been a Principal with AIM since January 2007. Prior to
    joining AIM, he was a Senior Securities Analyst for Scion
    Capital, a private investment partnership located in Cupertino,
    California, from August 2004 to August 2006 and was
    self-employed from August 2006 to January 2007. Mr.&#160;Barlow
    has 18&#160;years of investing experience in both the public and
    private equity markets; and while at Scion, he focused on public
    and private investments in the energy and natural resources
    sectors. He received an MBA from Columbia Business School and a
    B.A. from the University of Washington.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Barlow&#146;s 18&#160;years of investing experience, as
    well as his in-depth knowledge of the coal industry generally
    and our partnership in particular, provide him with the
    necessary skills to be a member of the board of directors of our
    general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Matthew P. Carbone </I>was elected as a member of the board
    of directors of our general partner in August 2007.
    Mr.&#160;Carbone has been a Managing Director of AIM since he
    co-founded AIM in July 2006. Prior to co-founding AIM, from
    January 2005 until July 2006, Mr.&#160;Carbone was a Managing
    Director of MDC. Mr.&#160;Carbone has spent nearly 20&#160;years
    in private equity and investment banking. Prior to MDC, he led
    Wit
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    127
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Capital Group&#146;s West Coast operations and worked in the
    investment banking divisions of Morgan Stanley, First Boston
    Corporation and Smith Barney. Mr.&#160;Carbone is a member of
    the board of directors of the general partner of Tunnel Hill
    Partners, an affiliate of AIM and C&#038;T Coal.
    Mr.&#160;Carbone is also a member of the board of directors of
    the general partner of American Midstream Partners, LP. He
    received an MBA from Harvard Business School and a B.A. in
    Neuroscience from Amherst College.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Carbone&#146;s nearly 20&#160;years of experience in
    corporate finance, as well as his in-depth knowledge of the coal
    industry generally and our partnership in particular, provide
    him with the necessary skills to be a member of the board of
    directors of our general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Gerald A. Tywoniuk </I>was elected as a member of the board
    of directors of our general partner in January 2009. He is the
    Chief Financial Officer and acting Chief Executive Officer of
    Pacific Energy Resources Ltd., an oil and gas acquisition,
    exploitation and development company, and has been in that
    position since September 2009. Mr.&#160;Tywoniuk previously
    acted as an independent consultant in accounting and finance
    from March 2007 to June 2008. From December 2002 through
    November&#160;2006, Mr.&#160;Tywoniuk was Senior Vice President
    and Chief Financial Officer of Pacific Energy Partners, LP. From
    November 2006 to March 2007, Mr.&#160;Tywoniuk assisted with the
    integration of Pacific Energy Partners, LP after it was acquired
    by Plains All American Pipeline, L.P. Mr.&#160;Tywoniuk holds a
    Bachelor of Commerce degree from The University of Alberta,
    Canada, and is a Canadian chartered accountant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Tywoniuk joined Pacific Energy Resources Ltd. in June
    2008 as Senior Vice President, Finance to help the management
    team work through the company&#146;s financially distressed
    situation. In August 2008, he was appointed as the
    company&#146;s Chief Financial Officer. The board of the company
    elected to file for Chapter&#160;11 protection in March 2009
    and, in September 2009, following the departure of the CEO and
    the President, Mr.&#160;Tywoniuk assumed the role of acting CEO.
    In December 2009, the company completed the sale of its assets,
    and is now working through the remaining steps of liquidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Tywoniuk has 28&#160;years of experience in accounting
    and finance, including 12&#160;years as the Chief Financial
    Officer of three public companies and Controller of a fourth
    public company. Mr.&#160;Tywoniuk&#146;s extensive accounting,
    financial and executive management experience, as well as his
    in-depth knowledge of the mining industry generally and our
    partnership in particular, and his prior experience with
    publicly traded partnerships, provide him with the necessary
    skills to be Chair of the Audit Committee of the board of
    directors of our general partner, where he also qualifies as an
    &#147;audit committee financial expert.&#148;
</DIV>

<A name='178'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Discussion and Analysis</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a discussion of the compensation policies and
    decisions of the board of directors of our general partner, or
    the Board, and the Compensation Committee with respect to the
    following individuals, who are executive officers of our general
    partner and referred to as the &#147;named executive
    officers&#148;:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Charles C. Ungurean, President and Chief Executive Officer;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Jeffrey M. Gutman, Senior Vice President, Chief Financial
    Officer and Treasurer;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Thomas T. Ungurean, Senior Vice President, Equipment,
    Procurement and Maintenance;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Gregory J. Honish, Senior Vice President, Operations;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Michael B. Gardner, Secretary and General Counsel.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our compensation program is designed to recruit and retain as
    executive officers individuals with the highest capacity to
    develop, grow and manage our business, and to align their
    compensation with our short-term and long-term goals. To do
    this, our compensation program for executive officers is made up
    of the following components: (i)&#160;base salary, designed to
    compensate our executive officers for work performed during the
    fiscal year; (ii)&#160;short-term incentive programs, designed
    to reward our executive officers for our yearly performance and
    for their individual performances during the fiscal year; and
    (iii)&#160;equity-based awards, meant to align our executive
    officers&#146; interests with our long-term performance.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    128
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Role
    of the Board, the Compensation Committee and
    Management</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner, under the direction of the Board, is
    responsible for the management of our operations and employs all
    of the employees that operate our business. Historically, from
    our formation in August 2007 through compensation decisions made
    in early 2010, decisions with respect to the compensation of
    executive officers were made by the Board, based primarily on
    negotiations between our management group and the directors on
    our Board that were not employees of our general partner. In
    connection with this offering, we have revised certain policies
    and practices with respect to executive compensation. In
    particular, the Board has appointed the Compensation Committee
    to help the board administer certain aspects of the compensation
    policies and programs for our executive officers and certain
    other employees and to make recommendations to the Board
    relating to the compensation of the directors and executive
    officers of our general partner. The Compensation Committee and
    the Board are charged with, among other things, the
    responsibility of reviewing executive officer compensation
    policies and practices to ensure (i)&#160;adherence to our
    compensation philosophies and (ii)&#160;that the total
    compensation paid to our executive officers is fair, reasonable
    and competitive.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The compensation programs for our executive officers consist of
    base salaries, annual incentive bonuses and awards under the
    Oxford Resource Partners, LP Long-Term Incentive Plan, which we
    refer to as our LTIP, in the form of equity-based phantom units,
    as well as other customary employment benefits. We expect that
    total compensation of our executive officers and the components
    and relative emphasis among components of their annual
    compensation will be reviewed on at least an annual basis by the
    Compensation Committee with any proposed changes recommended to
    the Board for final approval.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During 2009, the Board discussed compensation issues at several
    meetings. The Compensation Committee expects to hold
    compensation-related meetings for 2010 and in future years.
    Topics discussed and to be discussed at these meetings included
    and will include, among other things, (i)&#160;assessing the
    performance of the Chief Executive Officer, or the CEO, and
    other senior officers with respect to our results for the prior
    year, (ii)&#160;reviewing and assessing the personal performance
    of the senior officers for the preceding year and
    (iii)&#160;determining the amount of the bonus pool to be
    approved by the Board and paid to our executive officers for a
    given year after taking into account the target bonus levels
    established for those executive officers at the outset of the
    year. In addition, at these meetings, and after taking into
    account the recommendations of our CEO with respect to executive
    officers other than our CEO, base salary levels and target bonus
    levels (representing the bonus that may be awarded expressed as
    a percentage of base salary or as a dollar amount for the year)
    for our executive officers to be recommended to the Board will
    be established by the Compensation Committee. In addition, the
    Compensation Committee will make its recommendations to the
    Board with respect to any awards under the LTIP.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Objectives and Methodology</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The principal objective of our executive compensation program is
    to attract and retain individuals of demonstrated competence,
    experience and leadership who share our business aspirations,
    values, ethics and culture. A further objective is to provide
    incentives to and reward our executive officers and other key
    employees for positive contributions to our business and
    operations, and to align their interests with our
    unitholders&#146; interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In setting our compensation programs, we consider the following
    objectives:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    to create unitholder value through sustainable earnings and cash
    available for distribution;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    to provide a significant percentage of total compensation that
    is &#147;at-risk&#148; or variable;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    to encourage significant equity holdings to align the interests
    of executive officers and other key employees with those of
    unitholders;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    to provide competitive, performance-based compensation programs
    that allow us to attract and retain superior talent;&#160;and
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    129
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    to develop a strong linkage between business performance,
    safety, environmental stewardship, cooperation and executive
    compensation.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Taking account of the foregoing objectives, we structure total
    compensation for our executives to provide a guaranteed amount
    of cash compensation in the form of competitive base salaries,
    while also providing a meaningful amount of annual cash
    compensation that is at risk and dependent on our performance
    and individual performances of the executives, in the form of
    discretionary annual bonuses. We also seek to provide a portion
    of total compensation in the form of equity-based awards under
    our LTIP, in order to align the interests of executives and
    other key employees with those of our unitholders and for
    retention purposes. Historically, we have not made regular
    annual grants of awards under our LTIP. Instead, such awards
    have typically been made in connection with our formation, upon
    commencement of employment for executives who joined us after
    our formation, and in discrete circumstances to reward service
    or performance. Going forward, we expect that equity-based
    awards will be made more regularly and that equity-based awards
    will become more prominent in our annual compensation
    decision-making process.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Compensation decisions for individual executive officers are the
    result of the subjective analysis of a number of factors,
    including the individual executive officer&#146;s experience,
    skills or tenure with us and changes to the individual executive
    officer&#146;s position. In measuring the contributions of
    executive officers and our performance, a variety of financial
    measures are considered, including non-GAAP financial measures
    used by management to assess our financial performance, such as
    Adjusted EBITDA and cash available for distribution. For a
    definition of Adjusted EBITDA, please read &#147;Selected
    Historical and Pro Forma Consolidated Financial and Operating
    Data.&#148; For a discussion of the general concept of
    &#147;cash available for distribution,&#148; please read
    &#147;Cash Distribution Policy and Restrictions on
    Distributions.&#148; In addition, a variety of factors related
    to the individual performance of the executive officer are taken
    into consideration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In making individual compensation decisions, the Board
    historically has not relied on pre-determined performance goals
    or targets. Instead, determinations regarding compensation have
    been and are expected to continue to be the result of the
    exercise of judgment based on all reasonably available
    information and, to that extent, are discretionary. Each
    executive officer&#146;s current and prior compensation is
    considered in setting future compensation. The amount of each
    executive officer&#146;s current compensation is considered as a
    base against which determinations are made as to whether
    increases are appropriate to retain the executive officer in
    light of competition or in order to provide continuing
    performance incentives. The Board has discretion to adjust any
    of the components of compensation to achieve our goal of
    recruiting, promoting and retaining as executive officers,
    individuals with the skills necessary to execute our business
    strategy and develop, grow and manage our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to 2010, we did not review executive compensation against
    a specific group of comparable companies. Rather, the Board has
    historically relied upon the judgment and industry experience of
    its non-employee directors in making decisions with respect to
    total compensation and with respect to the allocation of total
    compensation among our three main components of compensation.
    Going forward, we expect that the Compensation Committee will
    make compensation recommendations to the Board based upon trends
    occurring within our industry, including from a peer group of
    companies that our Compensation Committee has recently
    identified, which includes the following coal companies and
    similar-sized publicly traded partnerships: Alliance Resource
    Partners, L.P., National Coal Corp., Westmoreland Coal Co.,
    James River Coal Co., International Coal Group, Inc., Patriot
    Coal Corporation, Vanguard Natural Resources, LLC, Global
    Partners LP, Legacy Reserves LP, Copano Energy LLC, Suburban
    Propane Partners LP and Crosstex Energy Inc.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Elements
    of the Compensation Programs</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Overall, the executive officer compensation programs are
    designed to be consistent with the philosophy and objectives set
    forth above. The principal elements of our executive officer
    compensation programs are summarized in the table below,
    followed by a more detailed discussion of each compensation
    element.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    130
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="21%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Element</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Characteristics</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Purpose</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Base Salaries
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Fixed annual cash compensation. Executive officers are eligible
    for periodic increases in base salaries. Increases may be based
    on performance or such other factors as the Board or the
    Compensation Committee may determine.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Keep our annual compensation competitive with the defined market
    for skills and experience necessary to execute our business
    strategy.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Annual Incentive<BR>
    Bonuses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Performance-related annual cash incentives earned based on our
    objectives and individual performance of the executive officers.
    Beginning in 2010, trends for our peer group will be taken into
    account in setting future annual cash incentive awards for our
    executive officers.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Align performance to our objectives that drive our business and
    reward executive officers for achievement of both our
    performance objectives and individual performance objectives.
    Amounts earned for achievement of target performance levels are
    designed to provide competitive total direct compensation;
    potential for awards above or below target amounts are intended
    to motivate executive officers to achieve or exceed our
    financial and operational goals.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Equity-Based Awards<BR>
    <FONT style="white-space: nowrap">(phantom-units)</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Performance-related, equity-based awards granted at the
    discretion of the Board.  Awards are based on our performance
    and, beginning in 2010, will be based on competitive practices
    at peer companies. Grants typically vest ratably over four years
    and will be settled upon vesting with either a net cash payment
    or an issuance of common units, at the discretion of the Board.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Align interests of executive officers with unitholders and
    motivate and reward executive officers to increase unitholder
    value over the long term. Ratable vesting over a four-year
    period is designed to facilitate retention of executive
    officers.
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    131
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="21%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Element</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Characteristics</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Purpose</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Retirement Plan
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Qualified retirement plan benefits are available for our
    executive officers and all other regular full-time employees.
    Through 2009, we maintained a defined contribution money
    purchase pension plan to which we made contributions for the
    benefit of the participants. Effective with 2010, we have
    adopted and are maintaining a tax-deferred or after-tax 401(k)
    plan in which all eligible employees can elect to defer
    compensation for retirement up to IRS imposed limits. The 401(k)
    plan permits us to make annual discretionary contributions to
    the plan, even if the participants do not contribute, as a
    percentage of the eligible compensation of participants in the
    plan.  Annual contributions of 3% or more of such eligible
    compensation will maintain &#147;safe harbor&#148; tax-qualified
    status for the plan, and while it is discretionary, we intend
    generally to make annual contributions at that level or higher.
    For 2010, we have committed to make an employer discretionary
    contribution of 4% of such eligible compensation.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Provide our executive officers and other employees with the
    opportunity to save for their future retirement.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Health and Welfare<BR>
    Benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Health and welfare benefits (medical, dental, vision, disability
    insurance and life insurance) are available for our executive
    officers and all other regular full-time employees.
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Provide benefits to meet the health and wellness needs of our
    executive officers and other employees and their families.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Base
    Salaries</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Design.</I>&#160;&#160;Base salaries for our executive
    officers are determined annually by an assessment of our overall
    financial and operating performance, each executive
    officer&#146;s performance evaluation and changes in executive
    officer responsibilities. While many aspects of performance can
    be measured in financial terms, senior management is also
    evaluated in areas of performance that are more subjective.
    These areas include the development and execution of strategic
    plans, the exercise of leadership in the development of
    management and other employees, innovation and improvement in
    our business activities and each executive officer&#146;s
    involvement in industry groups and in the communities that we
    serve. We seek to compensate executive officers for their
    performance throughout the year with annual base salaries that
    are fair and competitive within our marketplace. We believe that
    executive officer base salaries should be competitive with
    salaries for executive officers in similar positions and with
    similar responsibilities in our marketplace and adjusted for
    financial and operating performance and each executive
    officer&#146;s performance evaluation, length of service with us
    and previous work experience. Individual salaries have
    historically been established by the Board based on the general
    industry knowledge and experience of the directors on our Board
    that were not employees of our general partner, in alignment
    with these considerations and with reference to industry survey
    data, to ensure the attraction, development and retention of
    superior talent. Going forward, we expect that determinations
    will continue to focus on the above considerations and will also
    be made based upon relevant market data, including data from our
    peer group.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    132
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Base salaries are reviewed annually to ensure continuing
    consistency with market levels and our level of financial
    performance during the previous year. Future adjustments to base
    salaries and salary ranges will reflect average movement in the
    competitive market as well as individual performance. Annual
    base salary adjustments, if any, for the CEO have been
    determined by the directors on our Board that are not employees
    of our general partner, or the Non-employee Directors. After
    this offering, annual base salary adjustments for the CEO will
    be approved by the Non-employee Directors based upon
    recommendations from the Compensation Committee. Annual base
    salary adjustments, if any, for the other executive officers
    have been determined by the Board taking into account input from
    the CEO. After this offering, annual base salary adjustments for
    the other executive officers will be approved by the Board based
    upon recommendations from the Compensation Committee, which
    recommendations may take into account input from the CEO.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Actions Taken With Respect to Base Salaries in
    2009.</I>&#160;&#160;Effective May&#160;1, 2009 (except
    effective March&#160;30, 2009 in the case of Gregory J. Honish),
    the Board provided base salary increases to each of the named
    executive officers as provided in the table below. These base
    salary increases were provided as &#147;merit&#148; increases
    based on the Board&#146;s subjective assessment of each named
    executive officer&#146;s performance in 2008 and early 2009,
    considering a variety of factors, none of which was individually
    material to such assessment, and to ensure that the base
    salaries for the named executive officers remained competitive
    with other companies in our industry. In addition, for Gregory
    J. Honish, the increase reflected in part his promotion to
    Senior Vice President, Operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="8%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Base Salary at<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Base Salary Increase<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>2009 Base Salary<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Start of 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>in 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Following Increase</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charles C. Ungurean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    75,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    375,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jeffrey M. Gutman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    260,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thomas T. Ungurean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    225,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gregory J. Honish
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    110,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael B. Gardner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Annual
    Incentive Bonuses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Design.</I>&#160;&#160;As one way of accomplishing
    compensation objectives, executive officers are rewarded for
    their contribution to our financial and operational success
    through the award of discretionary annual cash incentive
    bonuses. Annual incentive awards, if any, for the CEO have been
    determined by the Non-employee Directors. After this offering,
    annual incentive awards, if any, for the CEO will be approved by
    the Non-employee Directors based upon recommendations from the
    Compensation Committee. Annual incentive awards, if any, for the
    other executive officers have been determined by the Board
    taking into account input from the CEO. After this offering,
    annual incentive awards for the other executive officers will be
    approved by the Board based upon recommendations from the
    Compensation Committee, which recommendations may take into
    account input from the CEO.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While target bonuses for our executive officers are initially
    set at percentages or dollar amounts that are 50% to 75% of
    their base salaries, the Board has broad discretion to retain,
    reduce or increase the award amounts when making its final bonus
    determinations. For executive officers other than Charles C.
    Ungurean and Thomas T. Ungurean, certain target bonus amounts
    were individually negotiated with the executive officers and are
    set forth in their employment agreements, which are discussed in
    more detail under &#147;&#151;&#160;Employment and Severance
    Agreements&#148; below. Although the employment agreements for
    Charles C. Ungurean and Thomas T. Ungurean provide that these
    executives are not eligible to receive annual incentive bonuses,
    the Board has historically paid annual bonuses to these
    executive officers in order to motivate them to achieve superior
    performance and to provide them with competitive amounts of
    total compensation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The annual incentive bonus award for each executive officer is
    contingent on the executive officer&#146;s continued employment
    with our general partner at the time of the award. Further,
    bonuses (similar to other elements of the compensation provided
    to executive officers) are not based on a prescribed formula or
    pre-determined goals or specified performance targets but rather
    have been determined on a subjective basis and generally have
    been based on a subjective evaluation of individual,
    company-wide and industry performances.
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    133
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board and the Compensation Committee believe that this
    approach to assessing performance results in a more
    comprehensive evaluation for compensation decisions. The Board
    has recognized, and the Compensation Committee will recognize,
    the following factors in making discretionary annual bonus
    recommendations and determinations:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a subjective performance evaluation based on company-wide
    financial and individual qualitative performance, as determined
    in the Board&#146;s discretion;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the scope, level of expertise and experience required for the
    executive officer&#146;s position.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These factors were selected as the most appropriate measures
    upon which to base the annual incentive cash bonus decisions
    because our Board believes that they help to align individual
    compensation with competency and contribution. With respect to
    its evaluation of company-wide financial performance, although
    no pre-determined numerical goals are established, the Board
    generally reviews our results with respect to Adjusted EBITDA
    and cash available for distribution in making annual bonus
    determinations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following its performance assessment, and based on our financial
    performance with respect to these criteria and the Board&#146;s
    qualitative assessment of individual performance, and in order
    to provide total cash compensation for the year that was
    competitive and consistent with total cash compensation provided
    by other companies in our industry, as determined by the
    directors on the Board who are not employees of our general
    partner and based on their industry knowledge and experience,
    the Board determined to award the incentive bonus amounts set
    forth in the table below to our named executive officers for
    performance in 2009. For the named executive officers with
    target bonus amounts set forth in their employment agreements,
    these awards represented approximately 85%-90% of the applicable
    target bonus amounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009
    Bonus<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charles C. Ungurean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    225,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jeffrey M. Gutman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thomas T. Ungurean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gregory J. Honish
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael B. Gardner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61,625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Amounts shown in this column do not include vacation pay amounts
    included in bonus amounts in the Summary Compensation Table for
    2009 below.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Beginning in 2010, the Compensation Committee expects that it
    will base annual incentive compensation award recommendations on
    additional company-wide criteria as well as industry criteria,
    recognizing the following factors as part of its determination
    of annual incentive bonuses (without assigning any particular
    weighting to any factor):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    financial performance for the prior fiscal year, including
    Adjusted EBITDA and cash available for distribution, in
    comparison to guidance provided to the marketplace during the
    prior fiscal year;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    distribution performance for the prior fiscal year compared to
    the peer group;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    unitholder total return for the prior fiscal year compared to
    the peer group;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    competitive compensation data of executive officers in the peer
    group.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These factors were selected as the most appropriate measures
    upon which to base the annual cash incentive bonus decisions
    going forward because the Compensation Committee believes that
    they will most directly correlate to increases in long-term
    value for our unitholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Equity-Based
    Awards</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Design.</I>&#160;&#160;The LTIP was adopted in 2007 in
    connection with our formation. In adopting the LTIP, the Board
    recognized that it needed a source of equity to attract new
    members to and retain members of the
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    134
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    management team, as well as to provide an equity incentive to
    other key employees. We believe the LTIP promotes a long-term
    focus on results and aligns executive and unitholder interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The LTIP is designed to encourage responsible and profitable
    growth while taking into account non-routine factors that may be
    integral to our success. Long-term incentive compensation in the
    form of equity grants are used to incentivize performance that
    leads to enhanced unitholder value, encourage retention and
    closely align the executive officers&#146; interests with
    unitholders&#146; interests. Equity grants provide a vital link
    between the long-term results achieved for our unitholders and
    the rewards provided to executive officers and other key
    employees. The equity grants we made upon adoption of the LTIP
    were designed to be comparable with long-term incentive plans of
    other coal production companies and coal master limited
    partnerships, based upon the industry knowledge and experience
    of the directors on the Board who are not employees of our
    general partner, and on individual negotiations with the named
    executive officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Phantom Units.</I>&#160;&#160;The only awards made under the
    LTIP since its adoption have been phantom units. Phantom units
    are a notional unit granted under the LTIP that entitles the
    holder to receive an amount of cash equal to the fair market
    value of one common unit upon vesting of the phantom unit,
    unless the Board elects to pay such vested phantom unit with a
    common unit in lieu of cash. Unvested phantom units are
    forfeited at the time the holder terminates employment. In
    general, phantom units awarded under our LTIP vest as to 25% of
    the award on the initial vesting date established at the time of
    the award and on each of the first three anniversaries of that
    initial vesting date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Equity-Based Award Policies.</I>&#160;&#160;Prior to 2010,
    equity-based awards were granted by the Board and were limited
    to the grants at our formation in 2007 (or for executives who
    joined us after our formation, upon or in connection with their
    commencement of employment) and grants that were made in certain
    limited circumstances to reward individual service and
    performance. In early 2010, the Board delegated a portion of its
    duties and responsibilities under the LTIP to the Compensation
    Committee. Going forward, we expect that equity-based awards
    will be awarded more regularly, as part of the ongoing total
    annual compensation package for executive officers, rather than
    only in such discrete circumstances. After this offering, annual
    equity compensation grants, if any, for the CEO will be approved
    by the Non-employee Directors based upon recommendations from
    the Compensation Committee. Equity compensation grants, if any,
    for the other executive officers have been determined by the
    Board taking into account input from the CEO. After this
    offering, annual equity compensation grants for the other
    executive officers will be approved by the Board based upon
    recommendations from the Compensation Committee, which
    recommendations may take into account input from the CEO.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Equity-Based Awards for 2009.</I>&#160;&#160;None of our
    named executive officers received any equity-based awards under
    the LTIP in 2009. However, in January 2010, Jeffrey M. Gutman
    received an award of 14,984 phantom units in recognition of his
    performance in connection with a restructuring of certain of our
    indebtedness and the completion of the Phoenix Coal acquisition
    in September 2009. In making this award, the Board also took
    into account its determination that the initial equity awards
    granted to Mr.&#160;Gutman in connection with his commencement
    of employment in 2008 were, in the Board&#146;s view based on
    its general industry knowledge and experience, below the level
    of equity participation granted to similarly situated executives
    at many other companies in our industry.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Deferred
    Compensation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Tax-deferred retirement plans are a common way that companies
    assist employees in preparing for retirement. Through 2009, we
    maintained a defined contribution money purchase pension plan to
    which we made contributions for the benefit of the participants,
    including named executive officers. Effective beginning in 2010,
    we provide our eligible executive officers and other employees
    with an opportunity to participate in our tax-deferred or
    after-tax 401(k) savings plan. The plan allows executive
    officers and other employees to defer compensation for
    retirement up to IRS imposed limits (for 2010, $16,500 for
    participants age&#160;49 and under and $22,000 for participants
    age&#160;50 and over). The 401(k) plan permits us to make annual
    discretionary contributions to the plan as a percentage of the
    eligible compensation of participants in the plan. Annual
    contributions of 3% or more of such eligible compensation will
    maintain &#147;safe harbor&#148; tax-qualified status for
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    135
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the plan, and while it is discretionary we intend generally to
    make annual contributions at that level or higher. For 2010, we
    have committed to make an employer discretionary contribution of
    4% of such eligible compensation. Decisions regarding this
    element of compensation do not impact any other element of
    compensation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Perquisites
    and Other Benefits</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although perquisites are not a significant factor in our
    compensation programs, we provide certain limited perquisite and
    personal benefits to certain of the named executive officers,
    including the use primarily for business purposes (with personal
    usage being limited to usage for commuting purposes) of
    company-owned automobiles for Charles C. Ungurean and Thomas T.
    Ungurean. We provide these benefits to assist the executive
    officers in performing their services for us and they are not
    factored into the Board&#146;s determinations with respect to
    other elements of total compensation. In addition, under our
    company-wide policy in effect through 2009, we maintained for
    all salaried employees including the executive officers a
    vacation program that provided additional annual payments to
    each of our salaried employees including the executive officers
    in the amount of his or her base salary over a period equal to
    the vacation time allotted to him or her. This payment was in
    addition to continuing the payment of base salaries for all
    salaried employees including the executive officers during
    periods when they were on vacation. Effective in 2010, the
    vacation policy was changed so that no such additional payments
    are made but base salaries will continue to be paid to the
    salaried employees including the executive officers while they
    are on vacation. The additional vacation-related payments made
    to the named executive officers for 2009 are included in bonus
    amounts and set forth in a footnote to the Summary Compensation
    Table for 2009 below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Recoupment
    Policy</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We currently do not have a recoupment policy applicable to
    annual incentive bonuses or equity awards. The Compensation
    Committee expects to continue to evaluate the need to adopt such
    a policy, in light of current legislative policies as well as
    economic and market conditions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Employment
    and Severance Arrangements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board and the Compensation Committee consider the
    maintenance of a sound management team to be essential to
    protecting and enhancing our best interests. To that end, we
    recognize that the uncertainty that may exist among management
    with respect to their &#147;at-will&#148; employment with our
    general partner may result in the departure or distraction of
    management personnel to our detriment. Accordingly, our general
    partner has entered into employment agreements with each of our
    named executive officers, which employment agreements contain
    severance arrangements that we believe are appropriate to
    encourage the continued attention and dedication of members of
    our management. These employment agreements are described more
    fully below under &#147;&#151;&#160;Potential Payment Upon
    Termination or Change in Control &#151;&#160;Employment
    Agreements with Named Executive Officers.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    136
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Compensation Table for 2009</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain information with respect
    to the compensation paid to the named executive officers for the
    year ended December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Bonus<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Principal Position</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Salary
    ($)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)<SUP style="font-size: 85%; vertical-align: top">(3)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Charles C. Ungurean<BR>
    </B>President and Chief Executive Officer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    375,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    248,077
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    640,781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Jeffrey M. Gutman<BR>
    </B>Senior Vice President, Chief Financial Officer and Treasurer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261,385
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,481
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,370
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    402,236
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Thomas T. Ungurean<BR>
    </B>Senior Vice President, Equipment, Procurement and Maintenance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    233,333
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    190,385
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,079
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    439,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Gregory J. Honish<BR>
    </B>Senior Vice President, Operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142,116
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,096
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    224,983
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Michael B. Gardner<BR>
    </B>Secretary and General Counsel
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    152,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,567
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    241,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Amounts shown in this column represent base salaries paid to the
    named executive officers in 2009 and include pro-rated amounts
    based on the increases in base salaries that occurred in 2009.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    The bonus amounts for the named executive officers reflect
    bonuses paid in late 2009 and early 2010 that relate to services
    performed in 2009, in the following amounts for each of the
    named executive officers: Charles C. Ungurean: $225,000; Jeffrey
    M. Gutman: $112,500; Thomas T. Ungurean: $175,000; Gregory J.
    Honish: $63,750; and Michael B. Gardner: $61,625. The bonus
    amounts also include vacation payments in 2009 (including in the
    case of Michael B. Gardner an additional payment in early 2010
    with respect to cancelled vacation time in late 2009 during
    which he performed services for us), as follows: Charles C.
    Ungurean: $23,077; Jeffrey M. Gutman: $12,981; Thomas T.
    Ungurean: $15,385; Gregory J. Honish: $6,346; and Michael B.
    Gardner: $13,942.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Amounts shown in this column include contributions being made to
    our defined contribution money purchase pension plan for each of
    the named executive officers with respect to services performed
    in 2009, payments made in 2009 with respect to life insurance
    benefits provided to each of the named executive officers and a
    holiday-related allowance paid in 2009 to each of the named
    executive officers. For each of Charles C. Ungurean and Thomas
    T. Ungurean, who are provided company-owned automobiles
    primarily for business use (with personal use being limited to
    usage for commuting purposes), the amount shown also includes
    the cost to us of providing an automobile to them for their use
    for the estimated personal usage portion thereof for commuting
    purposes (20% of the total cost in the case of Charles C.
    Ungurean and 5% of the total cost in the case of Thomas T.
    Ungurean) in the amount of $2,248 and $660, respectively.</TD>
</TR>

</TABLE>

<A name='179'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grants of
    Plan-Based Awards for 2009</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The named executive officers received no grants of plan-based
    awards during the year ended December&#160;31, 2009.
</DIV>

<A name='180'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Outstanding
    Equity-Based Awards at December&#160;31, 2009</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table provides information regarding outstanding
    equity-based awards held by the named executive officers as of
    December&#160;31, 2009. All such equity-based awards consist of
    phantom units granted
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    137
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    under the LTIP. Neither Charles C. Ungurean nor Thomas T.
    Ungurean held any outstanding equity-based awards at
    December&#160;31, 2009. None of the named executive officers
    hold outstanding option awards.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="63%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="8%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unit Awards</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Market Value of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of Phantom<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Phantom Units That<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Units That have Not<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Have Not Vested<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Vested<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Jeffrey M. Gutman<BR>
    </B>Senior Vice President, Chief Financial Officer and Treasurer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,848
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    258,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Gregory J. Honish<BR>
    </B>Senior Vice President, Operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,128
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89,381
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Michael B. Gardner<BR>
    </B>Secretary and General Counsel
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Gutman&#146;s remaining unvested units, which were
    granted in 2008, will vest 50% on March&#160;31, 2010 and 50% on
    March&#160;31, 2011. Messrs.&#160;Honish&#146;s and
    Gardner&#146;s remaining unvested units, which were granted in
    2007, will vest 50% on December&#160;1, 2010 and 50% on
    December&#160;1, 2011.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Based on the fair market value of our common units of $17.43 on
    December&#160;31, 2009.</TD>
</TR>

</TABLE>

<A name='181'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Units
    Vested in 2009</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows the phantom unit awards that vested
    during 2009. Charles C. Ungurean and Thomas T. Ungurean did not
    hold or vest in any phantom unit awards in 2009 and none of the
    named executive officers held or exercised any stock options in
    2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="71%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Units Acquired<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Value Realized on<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>on Vesting&#160;(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Vesting&#160;($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Jeffrey M. Gutman<BR>
    </B>Senior Vice President, Chief Financial Officer and
    Treasurer<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,425
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    83,160
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Gregory J. Honish<BR>
    </B>Senior Vice President,
    Operations<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,564
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Michael B. Gardner<BR>
    </B>Secretary and General
    Counsel<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,603
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,940
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Gutman&#146;s units vested on March&#160;31, 2009, and
    the value realized amount reflects a unit value of $11.20 per
    unit, the fair market value on such vesting date.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Units vested on December&#160;1, 2009, and the value realized
    amounts reflect a unit value of $17.43&#160;per unit, the fair
    market value on such vesting date.</TD>
</TR>

</TABLE>

<A name='182'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Pension
    Benefits</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The named executive officers do not participate in any pension
    plans and received no pension benefits (other than with respect
    to our defined contribution money purchase pension plan) during
    the year ended December&#160;31, 2009.
</DIV>

<A name='183'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Nonqualified
    Deferred Compensation</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The named executive officers do not participate in any
    nonqualified deferred compensation plans and received no
    nonqualified deferred compensation during the year ended
    December&#160;31, 2009.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    138
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='184'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Potential
    Payment Upon Termination or Change in Control</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Employment
    Agreements with Named Executive Officers</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Messrs.&#160;Charles Ungurean, Gutman, Thomas Ungurean, Honish
    and Gardner have each entered into employment agreements with
    our general partner. Each of the employment agreements had an
    initial term of two years, with the exception of that of
    Mr.&#160;Gardner which had an initial term of one year. The
    employment agreements are each automatically renewable for
    successive one-year periods unless terminated by providing at
    least 90&#160;days written notice prior to the commencement of
    the next succeeding one-year period. The agreements establish
    customary employment terms including base salaries, bonuses and
    other incentive compensation and other benefits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The employment agreements provide for, among other things, the
    payment of severance benefits and in some cases the continuation
    of certain benefits following certain terminations of employment
    by our general partner prior to the expiration of the term
    described in each of the employment agreements or the
    termination of employment for &#147;Good Reason&#148; (as
    defined in each of the employment agreements) by the executive
    officer. If the executive&#146;s employment is terminated by the
    general partner without &#147;Cause&#148; (as defined in the
    employment agreements) or the executive resigns for Good Reason,
    the executive will have the right to a lump sum cash payment by
    our general partner equal to one times (two times with respect
    to Charles C. Ungurean and Thomas T. Ungurean) the
    executive&#146;s annual base salary on the date of such
    termination, which will be subject to reimbursement by us to our
    general partner. In addition, for Messrs.&#160;Charles Ungurean
    and Thomas Ungurean, in the event of a termination due to death
    or disability (as such term is defined in the employment
    agreements), or by our general partner without Cause, the
    executive and his dependents will be entitled to continued
    participation in our general partner&#146;s employee benefit
    plans and insurance arrangements providing medical and dental
    benefits in which they are enrolled at the time of such
    termination for the remainder of the employment term, provided
    that the continuation is permitted at the time of termination
    under the terms of our general partner&#146;s employee benefit
    plans and insurance arrangements. Each of the foregoing
    severance benefits are conditioned on the executive executing a
    release of claims in favor of our general partner and its
    affiliates including us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Cause&#148; is defined in each employment agreement as the
    executive having (i)&#160;engaged in gross negligence, gross
    incompetence or willful misconduct in the performance of the
    duties required of him hereunder, (ii)&#160;refused without
    proper reason to perform the duties and responsibilities
    required of him hereunder, (iii)&#160;willfully engaged in
    conduct that is materially injurious to our general partner or
    its affiliates including us (monetarily or otherwise),
    (iv)&#160;committed an act of fraud, embezzlement or willful
    breach of fiduciary duty to our general partner or an affiliate
    including us (including the unauthorized disclosure of
    confidential or proprietary material information of our general
    partner or an affiliate including us or, in the case of
    Mr.&#160;Gutman&#146;s employment agreement only, including
    instead the unauthorized disclosure of information that is, and
    is known or reasonably should have been known to the executive
    to be, confidential or proprietary information of our general
    partner or an affiliate including us) or (v)&#160;been convicted
    of (or pleaded no contest to) a crime involving fraud,
    dishonesty or moral turpitude or any felony. &#147;Good
    Reason&#148; is defined in each employment agreement as a
    termination by the executive in connection with or based upon
    (i)&#160;a material diminution in the executive&#146;s
    responsibilities, duties or authority, (ii)&#160;a material
    diminution in the executive&#146;s base compensation or
    (iii)&#160;a material breach by us of any material provision of
    the employment agreement (and, in the case of
    Mr.&#160;Gutman&#146;s employment agreement, a breach of
    obligations with respect to his LTIP awards).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each employment agreement also contains certain confidentiality
    covenants prohibiting each executive officer from, among other
    things, disclosing confidential information relating to our
    general partner or any of its affiliates including us. The
    employment agreements also contain non-competition and
    non-solicitation restrictions continuing for a period of two
    years (one year in the case of the employment agreements for
    Messrs.&#160;Honish and Gardner) following termination of
    employment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Gutman&#146;s employment agreement also provides that,
    upon a change in control with respect to us or our general
    partner, Mr.&#160;Gutman will be entitled to accelerated vesting
    of all of his unvested awards under the LTIP. Assuming that a
    change in control with respect to us or our general partner had
    occurred on December&#160;31, 2009, Mr.&#160;Gutman would have
    been entitled to accelerated vesting with respect to 14,848
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    139
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    phantom units that he held as of such date, having a fair market
    value on such date of $258,801. In addition,
    Mr.&#160;Gutman&#146;s employment agreement provides that, at
    the time of an initial public offering involving us in which a
    profits interest plan is adopted by our general partner,
    Mr.&#160;Gutman will receive a 0.5% profits participation
    interest in our general partner. The interest would vest over
    the four-year period following the date of grant of the
    interest, and would be subject to accelerated vesting upon a
    change in control.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows the value of the severance benefits
    and other benefits for the named executive officers under the
    employment agreements, assuming each named executive officer had
    terminated employment on December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="18%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Death or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Termination<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Resignation for<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Disability<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Without Cause<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Good Reason<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Payment Type</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charles C. Ungurean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Cash severance
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    750,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    750,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Benefit continuation
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    760,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    750,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thomas T. Ungurean
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Cash severance
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    450,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    450,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Benefit continuation
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    459,212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    450,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jeffrey M. Gutman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Cash severance
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    260,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    260,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gregory J. Honish
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Cash severance
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael B. Gardner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    Cash severance
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<A name='185'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Long-Term
    Incentive Plan</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The board of directors of our general partner has adopted our
    LTIP for employees, consultants and directors of our general
    partner and affiliates who perform services for us. The LTIP
    includes five components: options, distribution equivalent
    rights, phantom units, restricted units and unit awards. The
    LTIP limits the number of units that may be delivered pursuant
    to awards of common units. Units withheld to satisfy exercise
    prices or tax withholding obligations are available for delivery
    pursuant to other awards. The plan is administered by the board
    of directors of our general partner or a committee thereof
    (effective in 2010, the Compensation Committee), which we refer
    to as the plan administrator.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The plan administrator may terminate or amend the LTIP at any
    time with respect to any units for which a grant has not yet
    been made. The plan administrator also has the right to alter or
    amend the LTIP or any part thereof from time to time, including
    increasing the number of units that may be granted, subject to
    unitholder approval as required by the exchange upon which the
    common units are listed at that time. However, no change in any
    outstanding grant may be made that would materially reduce the
    benefits of the participant without the consent of the
    participant. The plan will expire when units are no longer
    available under the plan for grants, upon its termination by the
    plan administrator or upon the tenth anniversary of the date
    that the LTIP was adopted by our general partner (or such
    earlier anniversary, if any, required by the rules of the
    exchange on which our common units are listed at that time).
</DIV>

<A name='186'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Retirement
    Plan</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We provide qualified retirement plan benefits to our executive
    officers and all other eligible employees. Through 2009, we
    maintained a defined contribution money purchase pension plan to
    which we made contributions for the benefit of the participants.
    Effective with 2010, we adopted a tax-deferred or after-tax
    401(k) plan in which all eligible employees can elect to defer
    compensation for retirement. We use the 401(k) plan to assist
    our eligible employees in saving for retirement on a
    tax-deferred or after-tax basis. The 401(k) plan permits all
    eligible employees to make voluntary pre-tax contributions to
    the plan, subject to applicable tax limitations. Employee
    contributions are subject to annual dollar limitations (for
    2010, $16,500 for participants age&#160;49 and under and $22,000
    for participants age&#160;50 and over), which are periodically
    adjusted for inflation. The tax deferred 401(k) plan is intended
    to be tax-qualified under section&#160;401(a) of the Internal
    Revenue Code so that contributions to the plan, and income
    earned on plan contributions, are not taxable to employees until
    withdrawn from the plan and so that tax-deferred contributions,
    if any, will be deductible
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    140
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    when made. The plan permits us to make annual discretionary
    contributions to the plan as a percentage of the eligible
    compensation of participants in the plan. Annual contributions
    of 3% or more of such eligible compensation will maintain
    &#147;safe harbor&#148; tax-qualified status for the plan, and
    while it is discretionary we intend generally to make annual
    contributions at that level or higher. For 2010, we have
    committed to make an employer discretionary contribution of 4%
    of such eligible compensation.
</DIV>

<A name='187'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    of Directors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner&#146;s non-employee directors are
    compensated for their service as directors under our general
    partner&#146;s Non-Employee Director Compensation Plan. Our
    non-employee directors are directors that (i)&#160;are not an
    officer or employee of our general partner or any of its
    subsidiaries or affiliates, (ii)&#160;are not affiliated with or
    related to any party that receives compensation from our general
    partner or any of its subsidiaries and affiliates, and
    (iii)&#160;have not entered into an arrangement with our general
    partner or any of its subsidiaries and affiliates to receive
    compensation from any such entity other than in respect of his
    services as a member of the Board. Each non-employee director
    will receive an annual compensation package consisting of the
    following: (i)&#160;a $30,000 cash retainer,
    (ii)&#160;restricted common units valued at $20,000 in the
    aggregate and (iii)&#160;where applicable, a $10,000 cash
    retainer for each committee chair position held. In addition,
    each non-employee director will receive per meeting fees of:
    (i)&#160;$1,000 for Board meetings attended in person,
    (ii)&#160;where applicable, $500 for Board committee meetings
    attended in person and (iii)&#160;$500 for telephonic Board
    meetings and committee meetings greater than one hour in length.
    Furthermore, each non-employee director may elect, with approval
    of the Compensation Committee, to receive the cash components,
    as outlined above, in the form of restricted common units
    representing an equivalent value at the date of issuance. The
    annual compensation package is paid to each non-employee
    director based on his or her service on the Board for the period
    beginning upon the date of his or her appointment to the Board.
    If a non-employee director&#146;s service on the Board commences
    on or after the first day of a fiscal year, such non-employee
    director will receive a prorated annual compensation package for
    such fiscal year. Restricted units awarded to non-employee
    directors under the annual compensation package or upon first
    election to the Board are granted under the LTIP and vest on the
    date of grant. Cash distributions are to be paid on these
    restricted units. Each non-employee director is also reimbursed
    for
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses in connection with attending meetings of the Board or
    its committees. Each director will be fully indemnified by us
    for actions associated with being a director of our general
    partner to the extent permitted under Delaware law.
</DIV>

<A name='188'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Compensation Table for 2009</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the compensation paid to our
    non-employee directors for the year ended December&#160;31,
    2009, as described above. None of our non-employee directors
    held any unvested units as of December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Fees Earned or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Paid in Cash&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unit Awards
    ($)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total&#160;($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gerald A. Tywoniuk
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20,010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    The amount in this column represents unit awards made to
    directors under the LTIP in 2009. These awards were granted and
    vested on December&#160;1, 2009 and had a fair value of $17.43
    per unit on such date.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    141
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='189'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain information regarding the
    beneficial ownership of units following the consummation of this
    offering and the related transactions by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    each person who is known to us to beneficially own more than 5%
    or more of such units to be outstanding;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    each of the named directors and executive officers of our
    general partner;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    all of the directors and executive officers of our general
    partner as a group.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All information with respect to beneficial ownership has been
    furnished by the respective directors, officers or 5% or more
    unitholders as the case may be.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner is owned 33.7% by C&#038;T Coal and 66.3% by
    AIM Oxford (both of which are reflected as 5% or more
    unitholders in the table below). C&#038;T Coal is owned by
    Charles C. Ungurean and Thomas T. Ungurean, each a member of our
    management team, and AIM Oxford is owned by AIM Coal LLC and
    certain investment partnerships affiliated with AIM.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amounts and percentage of units beneficially owned are
    reported on the basis of regulations of the SEC governing the
    determination of beneficial ownership of securities. Under the
    rules of the SEC, a person is deemed to be a &#147;beneficial
    owner&#148; of a security if that person has or shares
    &#147;voting power,&#148; which includes the power to vote or to
    direct the voting of such security, or &#147;investment
    power,&#148; which includes the power to dispose of or to direct
    the disposition of such security. Except as indicated by
    footnote, the persons named in the table below have sole voting
    and investment power with respect to all units shown as
    beneficially owned by them, subject to community property laws
    where applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The percentage of units beneficially owned is based on a total
    of&#160;&#160;&#160;&#160;&#160;common units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    subordinated units outstanding immediately following this
    offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="39%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Subordinated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Subordinated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Units to be<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Units to be<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total Units to be<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>to be Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>to be Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Beneficial Owner</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    AIM Oxford Holdings,
    LLC<SUP style="font-size: 85%; vertical-align: top">(1)(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    C&#038;T Coal,
    Inc.<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    George E.
    McCown<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Brian D.
    Barlow<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Matthew P.
    Carbone<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gerald A.
    Tywoniuk<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charles C.
    Ungurean<SUP style="font-size: 85%; vertical-align: top">(3)(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thomas T.
    Ungurean<SUP style="font-size: 85%; vertical-align: top">(3)(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jeffrey M.
    Gutman<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gregory J.
    Honish<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Michael B.
    Gardner<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Denise M.
    Maksimoski<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    All directors and executive officers as a group (consisting of
    10&#160;persons)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    &#160;&#160;* </TD>
    <TD></TD>
    <TD valign="bottom">
    An asterisk indicates that the person or entity owns less than
    one percent.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    AIM Oxford Holdings, LLC is governed by its sole manager, AIM
    Coal Management, LLC, a Delaware limited liability company. AIM
    Coal Management, LLC&#146;s members consist of George E. McCown
    and </TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    142
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Matthew P. Carbone, both directors of our general partner, and
    Robert B. Hellman, Jr. Messrs.&#160;McCown, Carbone and Hellman,
    in their capacity as members of AIM Coal Management, LLC, share
    voting and investment power with respect to the common and
    subordinated units owned by AIM Oxford Holdings, LLC.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    The address for this person or entity is 950 Tower Lane,
    Suite&#160;800, Foster City, California 94404.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    The address for this person or entity is 544 Chestnut Street,
    P.O.&#160;Box&#160;427, Coshocton, Ohio 43812.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    Charles C. Ungurean and Thomas T. Ungurean, as the shareholders
    of C&#038;T Coal, Inc., share voting and investment power with
    respect to the common and subordinated units owned by C&#038;T
    Coal, Inc.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    143
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='190'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After this offering, C&#038;T Coal will
    own&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units representing a combined&#160;&#160;&#160;&#160;&#160;%
    limited partner interest in us
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    subordinated units representing a
    combined&#160;&#160;&#160;&#160;&#160;% limited partner interest
    in us, if the underwriters exercise their option to purchase
    additional common units in full), and AIM Oxford will
    own&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units representing a combined&#160;&#160;&#160;&#160;&#160;%
    limited partner interest in us
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units representing a combined&#160;&#160;&#160;&#160;&#160;%
    limited partner interest in us, if the underwriters exercise
    their option to purchase additional common units in full).
    C&#038;T Coal and AIM Oxford will own and control our general
    partner which owns a 2.0% general partner interest in us and all
    of our incentive distribution rights.
</DIV>

<A name='191'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions
    and Payments to Our General Partner and Its Affiliates</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the distributions and payments to
    be made by us to our general partner and its affiliates in
    connection with the formation, ongoing operation and liquidation
    of Oxford Resource Partners, LP. These distributions and
    payments were determined by and among affiliated entities and,
    consequently, are not the result of arm&#146;s-length
    negotiations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B><I>Pre-IPO Stage</I></B> </TD>
    <TD></TD>
    <TD valign="bottom">
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    The consideration received by our general partner and its
    affiliates prior to this offering</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -19pt; margin-left: 19pt">
    &#149;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -19pt; margin-left: 19pt">
    &#149;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -19pt; margin-left: 19pt">
    &#149;&#160;&#160;&#160;&#160;all of our incentive distribution
    rights;</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -19pt; margin-left: 19pt">
    &#149;&#160;&#160;&#160;&#160;2.0% general partner interest; and</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
<DIV style="text-indent: -19pt; margin-left: 19pt">
    &#149;&#160;&#160;&#160;&#160;approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million in cash and
    accounts receivable.</DIV>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B><I>Post-IPO Stage</I></B> </TD>
    <TD></TD>
    <TD valign="bottom">
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Distributions of available cash to our general partner and its
    affiliates</TD>
    <TD></TD>
    <TD valign="bottom">
    We will generally make cash distributions 98% to the
    unitholders, including affiliates of our general partner, as the
    holders of an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units and all of the subordinated units and 2.0% to our
    general partner. In addition, if distributions exceed the
    minimum quarterly distribution and target distribution levels,
    our general partner will be entitled to increasing percentages
    of the distributions, up to 48% of the distributions above the
    highest target distribution level.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Assuming we have sufficient available cash to pay the full
    minimum quarterly distribution on all of our outstanding units
    for four quarters, our general partner and its affiliates would
    receive an annual distribution of approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million on the 2.0% general
    partner interest and approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million on their common
    units and subordinated units.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Payments to our general partner and its affiliates</TD>
    <TD></TD>
    <TD valign="bottom">
    Our general partner will not receive a management fee or other
    compensation for its management of Oxford Resource Partners, LP.
    Our general partner and its affiliates will be reimbursed for
    expenses incurred on our behalf. Our partnership agreement
    provides that our general partner will determine the amount of
    these expenses.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    144
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Withdrawal or removal of our general partner</TD>
    <TD></TD>
    <TD valign="bottom">
    If our general partner withdraws or is removed, its general
    partner interest and its incentive distribution rights will
    either be sold to the new general partner for cash or converted
    into common units, in each case for an amount equal to the fair
    market value of those interests. Please read &#147;The
    Partnership Agreement&#160;&#151; Withdrawal or Removal of Our
    General Partner.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B><I>Liquidation Stage</I></B> </TD>
    <TD></TD>
    <TD valign="bottom">
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Liquidation</TD>
    <TD></TD>
    <TD valign="bottom">
    Upon our liquidation, the partners, including our general
    partner, will be entitled to receive liquidating distributions
    according to their particular capital account balances.</TD>
</TR>

</TABLE>

<A name='192'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Ownership
    Interests of Certain Executive Officers and Directors of Our
    General Partner</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the closing of this offering, C&#038;T Coal and AIM Oxford
    will continue to own 100% of our general partner. Charles C.
    Ungurean, the President and Chief Executive Officer of our
    general partner, and Thomas T. Ungurean, the Senior Vice
    President, Equipment, Procurement and Maintenance of our general
    partner, own all of the equity interests in C&#038;T Coal. In
    addition, certain directors of our general partner are
    principals of AIM and have ownership interests in AIM.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the 2.0% general partner interest in us, our
    general partner owns the incentive distribution rights, which
    entitle the holder to increasing percentages, up to a maximum of
    48%, of the cash we distribute in excess of
    $&#160;&#160;&#160;&#160;&#160; per quarter, after the closing
    of our initial public offering. Upon the closing of this
    offering, C&#038;T Coal will
    own&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    subordinated units, and AIM Oxford will
    own&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    subordinated units.
</DIV>

<A name='193'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Advisory
    Services Agreement</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon our formation in August 2007, Oxford Mining Company entered
    into an advisory services agreement with American Infrastructure
    MLP Management, L.L.C. and American Infrastructure MLP PE
    Management, L.L.C., which are affiliates of AIM, AIM Oxford and
    certain directors of our general partner. Our advisors performed
    financial and advisory services to us under this agreement,
    which will be terminated in connection with this offering. Our
    advisors received annual compensation in the amount of $250,000
    plus a fee determined by a formula, taking into account the
    increase in our gross revenue over the prior year. During 2009
    we paid our advisors in excess of $307,000 for these services,
    as well as $1.0&#160;million in fees for services relating to an
    amendment to our existing credit facility. During 2008 we paid
    our advisors $225,000 for these services, and we did not pay our
    advisors for these services in 2007. We were also obligated to
    reimburse our advisors for expenses incurred by them in the
    performance of their services to us.
</DIV>

<A name='194'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Administrative
    and Operational Services Agreement</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;24, 2007, we entered into an administrative and
    operational services agreement with Oxford Mining Company and
    our general partner. Under the terms of the agreement, our
    general partner provides services to us and is reimbursed for
    all related costs incurred on our behalf. The services that our
    general partner provides include, among other things, general
    administrative and management services, human resources,
    information technology, finance and accounting, corporate
    development, real property, marketing, engineering, operations
    (including mining operations), geologic services, risk
    management and insurance services. During 2009, 2008 and 2007,
    we paid our general partner approximately $45.2&#160;million,
    $14.3&#160;million and $139,000, respectively, for services,
    primarily related to payroll, performed under the agreement. Any
    party may terminate the administrative and operational services
    agreement by providing at least 30&#160;days&#146; written
    notice to the other parties of its intention to terminate the
    agreement.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    145
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='195'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Contribution
    Agreements</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In August 2007 we entered into a contribution and sale agreement
    with our general partner, C&#038;T Coal, AIM Oxford, Charles C.
    Ungurean and Thomas C. Ungurean. Pursuant to the contribution
    and sale agreement, each of C&#038;T Coal, Charles C. Ungurean
    and Thomas T. Ungurean (and any of their related parties) agreed
    not to directly or indirectly compete with us or to disseminate
    confidential information or trade secrets regarding us and our
    subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March 2008 we entered into a contribution agreement with our
    general partner and AIM Oxford. Pursuant to this contribution
    agreement, we received a contribution of $8,820,000 from AIM
    Oxford as consideration for the issuance to AIM Oxford of
    787,500 Class&#160;B common units. We also received a
    contribution of $180,000 from our general partner as
    consideration for the issuance to our general partner of
    approximately 16,071 general partner units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2008 we entered into a contribution agreement with
    our general partner, C&#038;T Coal and AIM Oxford. Pursuant to
    this contribution agreement, we received a contribution of
    $686,000 from C&#038;T Coal and a contribution of $1,274,000
    from AIM Oxford as consideration for the issuance to C&#038;T
    Coal and AIM Oxford of 61,250 Class&#160;B common units and
    113,750 Class&#160;B common units, respectively. We also
    received a contribution of $40,000 from our general partner as
    consideration for the issuance to our general partner of
    approximately 3,571 general partner units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In August 2009 we entered into a contribution agreement with
    C&#038;T Coal and AIM Oxford. Pursuant to this contribution
    agreement, we received a contribution of $1,050,000 from
    C&#038;T Coal and $1,950,000 from AIM Oxford as consideration
    for the issuance to C&#038;T Coal and AIM Oxford of 35 deferred
    participation units and 65 deferred participation units,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009 we entered into a contribution and conversion
    agreement with our general partner, C&#038;T Coal and AIM
    Oxford. Pursuant to the contribution and conversion agreement,
    we received a contribution of $1,469,993.91 from C&#038;T Coal
    and $6,860,012.25 from AIM Oxford as consideration for the
    issuance to C&#038;T Coal and AIM Oxford of 84,337 Class&#160;B
    common units and 393,575 Class&#160;B common units,
    respectively. We also received a contribution of $231,224.62
    from our general partner as consideration for the issuance to
    our general partner of approximately 13,266 general partner
    units. In connection with the execution of the contribution and
    conversion agreement, C&#038;T Coal and AIM Oxford elected to
    convert their deferred participation units into approximately
    60,241 Class&#160;B common units and approximately 111,876
    Class&#160;B common units, respectively.
</DIV>

<A name='196'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investors&#146;
    Rights Agreement</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We entered into an investors&#146; rights agreement on
    August&#160;24, 2007 with our general partner, C&#038;T Coal,
    AIM Oxford, Charles C. Ungurean and Thomas C. Ungurean. Pursuant
    to such agreement and subject to certain restrictions, C&#038;T
    Coal was granted certain demand and &#147;piggyback&#148;
    registration rights. Pursuant to the terms of the agreement,
    C&#038;T Coal has the right to require us to file a registration
    statement for the public sale of all of the common and
    subordinated units it owns at any time after the offering. In
    addition and subject to certain restrictions, if we sell any
    common units in a registered underwritten offering, C&#038;T
    Coal will have the right to include its common units in that
    offering; provided, however, that the managing underwriter or
    underwriters of any such offering will have the right to limit
    the number of common units to be included in such sale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay all expenses relating to any demand or piggyback
    registration, except for fees and disbursements of any counsel
    retained by C&#038;T Coal and any underwriter or brokers&#146;
    commission or discounts.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    146
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='197'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tunnel
    Hill Partners, LP</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The vast majority of the ownership interest in Tunnel Hill
    Partners, LP is directly or indirectly owned by T&#038;C Holdco,
    LLC and AIM Tunnel Hill Holdings II, LLC. T&#038;C Holdco is
    wholly-owned by Charles C. Ungurean and Thomas T. Ungurean. AIM
    Tunnel Hill Holdings&#160;II, LLC is indirectly owned by AIM.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a party to an environmental services agreement with
    Tunnell Hill Reclamation LLC, a wholly owned subsidiary of
    Tunnel Hill Partners, LP, pursuant to which we provide certain
    landfill operational services. Receipts for these services for
    2009 and 2008 were approximately $0.6&#160;million and
    $1.1&#160;million, respectively. We had no such receipts for
    2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, pursuant to a mining agreement, Tunnell Hill
    Reclamation LLC has granted us access to certain properties for
    the purpose of conducting mining operations. As consideration
    for such access, we have authorized the construction by Tunnel
    Hill Reclamation LLC of future landfills or other waste disposal
    facilities on such properties.
</DIV>

<A name='266'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Policies
    and Procedures for Review and Approval of Related Party
    Transactions</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We expect that we will adopt policies for the review, approval
    and ratification of transactions with related persons as
    required by Item&#160;404(a) of
    <FONT style="white-space: nowrap">Regulation&#160;S-K.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon our adoption of governance guidelines, a director of our
    general partner would be expected to bring to the attention of
    the CEO or the board any conflict or potential conflict of
    interest that may arise between the director or any affiliate of
    the director, on the one hand, and the partnership or our
    general partner, on the other hand. The resolution of any such
    conflict or potential conflict should, at the discretion of the
    board in light of the circumstances, be determined by a majority
    of the disinterested directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a conflict or potential conflict of interest arises between
    us and our general partner, the resolution of any such conflict
    or potential conflict should be addressed by the board in
    accordance with the provisions of our partnership agreement. At
    the discretion of the board in light of the circumstances, the
    resolution may be determined by the board in its entirety or by
    the Conflicts Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon our adoption of a Code of Business Conduct, any executive
    officer of our general partner will be required to avoid
    conflicts of interest unless approved by the board of directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the case of any sale of our equity in which an owner or
    affiliate of an owner of our general partner participates, we
    anticipate that our practice will be to obtain general approval
    of the full board for the transaction. In connection therewith,
    the board may elect to delegate authority to set the specific
    terms to a pricing committee, consisting of the CEO and one
    independent director, with the actions by the pricing committee
    requiring unanimous approval.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    147
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='198'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CONFLICTS
    OF INTEREST AND FIDUCIARY DUTIES</FONT></B>
</DIV>

</A>
<A name='199'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Conflicts
    of Interest</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Conflicts of interest exist and may arise in the future as a
    result of the relationships between our general partner and its
    affiliates (including C&#038;T Coal and AIM Oxford), on the one
    hand, and us and our unaffiliated limited partners, on the other
    hand. The directors and executive officers of our general
    partner have fiduciary duties to manage our general partner in a
    manner beneficial to its owners. At the same time, our general
    partner has a fiduciary duty to manage us in a manner beneficial
    to us and our unitholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Whenever a conflict arises between our general partner or its
    affiliates, on the one hand, and us and our limited partners, on
    the other hand, our general partner will resolve that conflict.
    Our partnership agreement contains provisions that modify and
    limit our general partner&#146;s fiduciary duties to the
    unitholders. Our partnership agreement also restricts the
    remedies available to unitholders for actions taken by our
    general partner that, without those limitations, might
    constitute breaches of its fiduciary duty.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner will not be in breach of its obligations
    under the partnership agreement or its fiduciary duties to us or
    our unitholders if the resolution of the conflict is:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    approved by the Conflicts Committee, although our general
    partner is not obligated to seek such approval;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    approved by the vote of a majority of the outstanding common
    units, excluding any common units owned by our general partner
    or any of its affiliates;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    on terms no less favorable to us than those generally being
    provided to or available from unrelated third parties;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    fair and reasonable to us, taking into account the totality of
    the relationships between the parties involved, including other
    transactions that may be particularly favorable or advantageous
    to us.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may, but is not required to, seek the
    approval of such resolution from the Conflicts Committee. In
    connection with a situation involving a conflict of interest,
    any determination by our general partner involving the
    resolution of the conflict of interest must be made in good
    faith, provided that, if our general partner does not seek
    approval from the Conflicts Committee and its board of directors
    determines that the resolution or course of action taken with
    respect to the conflict of interest satisfies either of the
    standards set forth in the third and fourth bullet points above,
    then it will be presumed that, in making its decision, the board
    of directors acted in good faith, and in any proceeding brought
    by or on behalf of any limited partner or the Partnership, the
    person bringing or prosecuting such proceeding will have the
    burden of overcoming such presumption. Unless the resolution of
    a conflict is specifically provided for in our partnership
    agreement, our general partner or the Conflicts Committee may
    consider any factors it determines in good faith to consider
    when resolving a conflict. When our partnership agreement
    requires someone to act in good faith, it requires that person
    to believe that he is acting in the best interests of the
    partnership.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Conflicts of interest could arise in the situations described
    below, among others.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">AIM
    Oxford and AIM, affiliates of our general partner, may compete
    with us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement provides that our general partner will
    be restricted from engaging in any business activities other
    than acting as our general partner (or as general partner of
    another company of which we are a partner or member) or those
    activities incidental to its ownership of interests in us. In
    addition, C&#038;T Coal and its affiliates are prohibited from
    competing with us in Illinois, Kentucky, Ohio, Pennsylvania,
    West Virginia and Virginia until August 2014. However, certain
    affiliates of our general partner, including AIM Oxford and AIM
    and its investment funds, are not prohibited from engaging in
    other businesses or activities, including those that might be in
    direct competition with us. Additionally, AIM, through its
    investment funds and managed accounts, makes investments and
    purchases entities in various areas of the energy sector,
    including the coal industry. These investments and acquisitions
    may include entities or assets that we would have been
    interested in acquiring.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    148
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of our partnership agreement, the doctrine
    of corporate opportunity, or any analogous doctrine, will not
    apply to our general partner or any of its affiliates, including
    its executive officers, directors, C&#038;T Coal and AIM Oxford.
    Any such person or entity that becomes aware of a potential
    transaction, agreement, arrangement or other matter that may be
    an opportunity for us will not have any duty to communicate or
    offer such opportunity to us. Any such person or entity will not
    be liable to us or to any limited partner for breach of any
    fiduciary duty or other duty by reason of the fact that such
    person or entity pursues or acquires such opportunity for
    itself, directs such opportunity to another person or entity or
    does not communicate such opportunity or information to us.
    Therefore, AIM Oxford may compete with us for investment
    opportunities and may own an interest in entities that compete
    with us. Until August 2014, C&#038;T Coal and its affiliates may
    only compete with us outside the six states referred to above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our general partner is allowed to take into account the
    interests of parties other than us, such as C&#038;T Coal and
    AIM Oxford, in resolving conflicts.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement contains provisions that reduce the
    fiduciary standards to which our general partner would otherwise
    be held by state fiduciary duty law. For example, our
    partnership agreement permits our general partner to make a
    number of decisions in its individual capacity, as opposed to in
    its capacity as our general partner. This entitles our general
    partner to consider only the interests and factors that it
    desires, and it has no duty or obligation to give any
    consideration to any interest of, or factors affecting, us, our
    affiliates or any limited partner. Examples include the exercise
    of our general partner&#146;s limited call right, its voting
    rights with respect to the units it owns, its registration
    rights and its determination whether or not to consent to any
    merger or consolidation of the partnership.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Our partnership agreement limits the liability and reduces
    the fiduciary duties owed by our general partner, and also
    restricts the remedies available to our unitholders for actions
    that, without those limitations, might constitute breaches of
    its fiduciary duty.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the provisions described above, our partnership
    agreement contains provisions that restrict the remedies
    available to our unitholders for actions that might otherwise
    constitute breaches of our general partner&#146;s fiduciary
    duty. For example, our partnership agreement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    provides that our general partner shall not have any liability
    to us or our unitholders for decisions made in its capacity as
    general partner so long as such decisions are made in good faith
    and with the belief that the decision was in our best interest;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    provides generally that affiliated transactions and resolutions
    of conflicts of interest not approved by the Conflicts Committee
    and not involving a vote of unitholders must either be
    (1)&#160;on terms no less favorable to us than those generally
    being provided to or available from unrelated third parties or
    (2)&#160;&#147;fair and reasonable&#148; to us, as determined by
    our general partner in good faith, provided that, in determining
    whether a transaction or resolution is &#147;fair and
    reasonable,&#148; our general partner may consider the totality
    of the relationships between the parties involved, including
    other transactions that may be particularly advantageous or
    beneficial to us;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    provides that our general partner and its executive officers and
    directors will not be liable for monetary damages to us or our
    limited partners or their assignees resulting from any act or
    omission unless there has been a final and non-appealable
    judgment entered by a court of competent jurisdiction
    determining that our general partner or its executive officers
    or directors acted in bad faith or engaged in fraud or willful
    misconduct or, in the case of a criminal matter, acted with
    knowledge that their conduct was criminal.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Except
    in limited circumstances, our general partner has the power and
    authority to conduct our business without unitholder
    approval</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under our partnership agreement, our general partner has full
    power and authority to do all things, other than those items
    that require unitholder approval or with respect to which our
    general partner has sought
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    149
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Conflicts Committee approval, on such terms as it determines to
    be necessary or appropriate to conduct our business including,
    but not limited to, the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the making of any expenditures, the lending or borrowing of
    money, the assumption or guarantee of or other contracting for,
    indebtedness and other liabilities, the issuance of evidences of
    indebtedness, including indebtedness that is convertible into
    our securities, and the incurring of any other obligations;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the purchase, sale or other acquisition or disposition of our
    securities, or the issuance of additional options, rights,
    warrants and appreciation rights relating to our securities;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the mortgage, pledge, encumbrance, hypothecation or exchange of
    any or all of our assets;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the negotiation, execution and performance of any contracts,
    conveyances or other instruments;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the distribution of our cash;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the selection and dismissal of employees and agents, outside
    attorneys, accountants, consultants and contractors and the
    determination of their compensation and other terms of
    employment or hiring;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the maintenance of insurance for our benefit and the benefit of
    our partners;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the formation of, or acquisition of an interest in, the
    contribution of property to, and the making of loans to, any
    limited or general partnership, joint venture, corporation,
    limited liability company or other entity;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the control of any matters affecting our rights and obligations,
    including the bringing and defending of actions at law or in
    equity, otherwise engaging in the conduct of litigation,
    arbitration or mediation and the incurring of legal expense, the
    settlement of claims and litigation;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the indemnification of any person against liabilities and
    contingencies to the extent permitted by law;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the making of tax, regulatory and other filings, or the
    rendering of periodic or other reports to governmental or other
    agencies having jurisdiction over our business or
    assets;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the entering into of agreements with any of its affiliates to
    render services to us or to itself in the discharge of its
    duties as our general partner.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement provides that our general partner must
    act in &#147;good faith&#148; when making decisions on our
    behalf, and our partnership agreement further provides that in
    order for a determination to be made in &#147;good faith,&#148;
    our general partner must believe that the determination is in
    our best interests. Please read &#147;The Partnership
    Agreement&#160;&#151; Voting Rights&#148; for information
    regarding matters that require unitholder approval.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Actions
    taken by our general partner may affect the amount of cash
    available for distribution to unitholders or accelerate the
    right to convert subordinated units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount of cash that is available for distribution to
    unitholders is affected by decisions of our general partner
    regarding such matters as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the amount and timing of asset purchases and sales;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    cash expenditures and the amount of estimated maintenance
    capital expenditures;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    borrowings;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the issuance of additional units;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the creation, reduction or increase of reserves in any quarter.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner determines the amount and timing of any
    capital expenditures and whether a capital expenditure is
    classified as an estimated maintenance capital expenditure,
    which reduces operating surplus, or an expansion capital
    expenditure, which does not reduce operating surplus. This
    determination can affect the
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    150
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    amount of cash that is distributed to our unitholders and to our
    general partner and the ability of the subordinated units to
    convert into common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, our general partner may use an amount, initially
    equal to $&#160;&#160;&#160;&#160;&#160;&#160;million, which
    would not otherwise constitute available cash from operating
    surplus, in order to permit the payment of cash distributions on
    its units and incentive distribution rights. All of these
    actions may affect the amount of cash distributed to our
    unitholders and our general partner and may facilitate the
    conversion of subordinated units into common units. Please read
    &#147;How We Make Cash Distributions.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, borrowings by us and our affiliates do not
    constitute a breach of any duty owed by our general partner to
    our unitholders, including borrowings that have the purpose or
    effect of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    enabling our general partner or its affiliates to receive
    distributions on any subordinated units held by them or the
    incentive distribution rights;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    hastening the expiration of the subordination period.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For example, in the event we have not generated sufficient cash
    from our operations to pay the minimum quarterly distribution on
    our common units and our subordinated units, our partnership
    agreement permits us to borrow funds, which would enable us to
    make this distribution on all outstanding units. Please read
    &#147;How We Make Cash Distributions&#160;&#151; Subordination
    Period.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement provides that we and our subsidiaries
    may borrow funds from our general partner and its affiliates.
    Our general partner and its affiliates may not borrow funds from
    us, or our operating company and its operating subsidiaries.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    will reimburse our general partner and its affiliates for
    expenses.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will reimburse our general partner and its affiliates for
    costs incurred in managing and operating us. Our partnership
    agreement provides that our general partner will determine the
    expenses that are allocable to us in good faith, and it will
    charge on a fully allocated cost basis for services provided to
    us. The fully allocated basis charged by our general partner
    does not include a profit component. Please read &#147;Certain
    Relationships and Related Party Transactions.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Contracts
    between us, on the one hand, and our general partner and its
    affiliates, on the other, will not be the result of
    arm&#146;s-length negotiations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement allows our general partner to
    determine, in good faith, any amounts to pay itself or its
    affiliates for any services rendered to us. Our general partner
    may also enter into additional contractual arrangements with any
    of its affiliates on our behalf. Neither our partnership
    agreement nor any of the other agreements, contracts, and
    arrangements between us and our general partner and its
    affiliates are or will be the result of arm&#146;s-length
    negotiations. Similarly, agreements, contracts or arrangements
    between us and our general partner and its affiliates that are
    entered into following the closing of this offering will not be
    required to be negotiated on an arm&#146;s-length basis,
    although, in some circumstances, our general partner may
    determine that the Conflicts Committee may make a determination
    on our behalf with respect to such arrangements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner will determine, in good faith, the terms of
    any of these transactions entered into after the close of this
    offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner and its affiliates will have no obligation
    to permit us to use any facilities or assets of our general
    partner and its affiliates, except as may be provided in
    contracts entered into specifically for such use. There is no
    obligation of our general partner and its affiliates to enter
    into any contracts of this kind.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    general partner intends to limit its liability regarding our
    obligations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner intends to limit its liability under
    contractual arrangements so that counterparties to such
    agreements have recourse only against our assets and not against
    our general partner or its assets or any
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    151
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    affiliate of our general partner or its assets. Our partnership
    agreement provides that any action taken by our general partner
    to limit its liability is not a breach of our general
    partner&#146;s fiduciary duties, even if we could have obtained
    terms that are more favorable without the limitation on
    liability.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Common
    units are subject to our general partner&#146;s limited call
    right.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may exercise its right to call and purchase
    common units, as provided in our partnership agreement, or may
    assign this right to one of its affiliates or to us. Our general
    partner may use its own discretion, free of fiduciary duty
    restrictions, in determining whether to exercise this right. As
    a result, a common unitholder may have to sell his common units
    at an undesirable time or price. Please read &#147;The
    Partnership Agreement&#160;&#151; Limited Call Right.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Common
    unitholders will have no right to enforce obligations of our
    general partner and its affiliates under agreements with
    us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any agreements between us, on the one hand, and our general
    partner and its affiliates, on the other, will not grant to the
    unitholders, separate and apart from us, the right to enforce
    the obligations of our general partner and its affiliates in our
    favor.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    general partner decides whether to retain separate counsel,
    accountants or others to perform services for us.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The attorneys, independent accountants and others who perform
    services for us have been retained by our general partner.
    Attorneys, independent accountants and others who perform
    services for us are selected by our general partner or the
    Conflicts Committee and may perform services for our general
    partner and its affiliates. We may retain separate counsel for
    ourselves or the holders of common units in the event of a
    conflict of interest between our general partner and its
    affiliates, on the one hand, and us or the holders of common
    units, on the other, depending on the nature of the conflict. We
    do not intend to do so in most cases.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    general partner may elect to cause us to issue common units to
    it in connection with a resetting of the target distribution
    levels related to our general partner&#146;s incentive
    distribution rights without the approval of the Conflicts
    Committee or our unitholders. This election may result in lower
    distributions to our common unitholders in certain
    situations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner has the right, at any time when there are no
    subordinated units outstanding and it has received incentive
    distributions at the highest level to which it is entitled (48%)
    for each of the prior four consecutive fiscal quarters, to reset
    the initial target distribution levels at higher levels based on
    our cash distribution at the time of the exercise of the reset
    election. Following a reset election by our general partner, the
    minimum quarterly distribution will be reset to an amount equal
    to the average cash distribution per common unit for the two
    fiscal quarters immediately preceding the reset election (such
    amount is referred to as the &#147;reset minimum quarterly
    distribution&#148;), and the target distribution levels will be
    reset to correspondingly higher levels based on percentage
    increases above the reset minimum quarterly distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We anticipate that our general partner would exercise this reset
    right in order to facilitate acquisitions or internal growth
    projects that would not be sufficiently accretive to cash
    distributions per common unit without such conversion; however,
    it is possible that our general partner could exercise this
    reset election at a time when we are experiencing declines in
    our aggregate cash distributions or at a time when our general
    partner expects that we will experience declines in our
    aggregate cash distributions in the foreseeable future. In such
    situations, our general partner may be experiencing, or may
    expect to experience, declines in the cash distributions it
    receives related to its incentive distribution rights and may
    therefore desire to be issued our common units, which are
    entitled to specified priorities with respect to our
    distributions and which therefore may be more advantageous for
    the general partner to own in lieu of the right to receive
    incentive distribution payments based on target distribution
    levels that are less certain to be achieved in the then current
    business environment. As a result, a reset election may cause
    our common unitholders to experience dilution in the amount of
    cash distributions that they would have otherwise received had
    we not issued new common units to
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    152
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    our general partner in connection with resetting the target
    distribution levels related to our general partner&#146;s
    incentive distribution rights. Please read &#147;How We Make
    Cash Distributions&#160;&#151; Distributions of Available
    Cash&#160;&#151; General Partner Interest and Incentive
    Distribution Rights.&#148;
</DIV>

<A name='200'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fiduciary
    Duties</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner is accountable to us and our unitholders as
    a fiduciary. Fiduciary duties owed to unitholders by our general
    partner are prescribed by law and the partnership agreement. The
    Delaware Act provides that Delaware limited partnerships may, in
    their partnership agreements, modify or eliminate, except for
    the contractual covenant of good faith and fair dealing, the
    fiduciary duties owed by the general partner to limited partners
    and the partnership.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement contains various provisions
    restricting the fiduciary duties that might otherwise be owed by
    our general partner. We have adopted these provisions to allow
    our general partner or its affiliates to engage in transactions
    with us that would otherwise be prohibited by state-law
    fiduciary standards and to take into account the interests of
    other parties in addition to our interests when resolving
    conflicts of interest. Without such modifications, such
    transactions could result in violations of our general
    partner&#146;s state-law fiduciary duty standards. We believe
    this is appropriate and necessary because the board of directors
    of our general partner has fiduciary duties to manage our
    general partner in a manner beneficial both to its owners, as
    well as to our unitholders. Without these modifications, our
    general partner&#146;s ability to make decisions involving
    conflicts of interest would be restricted. The modifications to
    the fiduciary standards enable our general partner to take into
    consideration the interests of all parties involved, so long as
    the resolution is fair and reasonable to us. These modifications
    also enable our general partner to attract and retain
    experienced and capable directors. These modifications
    disadvantage the common unitholders because they restrict the
    rights and remedies that would otherwise be available to
    unitholders for actions that, without those limitations, might
    constitute breaches of fiduciary duty, as described below, and
    permit our general partner to take into account the interests of
    third parties in addition to our interests when resolving
    conflicts of interest. The following is a summary of the
    material restrictions of the fiduciary duties owed by our
    general partner to the limited partners:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    State law fiduciary duty standards
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Fiduciary duties are generally considered to include an
    obligation to act in good faith and with due care and loyalty.
    The duty of care, in the absence of a provision in a partnership
    agreement providing otherwise, would generally require a general
    partner to act for the partnership in the same manner as a
    prudent person would act on his own behalf.  The duty of
    loyalty, in the absence of a provision in a partnership
    agreement providing otherwise, would generally prohibit a
    general partner of a Delaware limited partnership from taking
    any action or engaging in any transaction where a conflict of
    interest is present.
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    153
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Partnership agreement modified standards
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Our partnership agreement contains provisions that waive or
    consent to conduct by our general partner and its affiliates
    that might otherwise raise issues as to compliance with
    fiduciary duties or applicable law.  For example, our
    partnership agreement provides that when our general partner is
    acting in its capacity as our general partner, as opposed to in
    its individual capacity, it must act in &#147;good faith&#148;
    and will not be subject to any other standard under applicable
    law.  In addition, when our general partner is acting in its
    individual capacity, as opposed to in its capacity as our
    general partner, it may act without any fiduciary obligation to
    us or our limited partners whatsoever.  These standards reduce
    the obligations to which our general partner would otherwise be
    held.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Our partnership agreement generally provides that affiliated
    transactions and resolutions of conflicts of interest not
    involving a vote of unitholders or that are not approved by the
    Conflicts Committee must be:
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;on terms no less favorable to us than
    those generally being provided to or available from unrelated
    third parties; or
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -4pt; margin-left: 4pt">
    &#149;&#160;&#160;&#160;&#147;fair and reasonable&#148; to us,
    taking into account the totality of the relationships between
    the parties involved (including other transactions that may be
    particularly favorable or advantageous to us).
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    If our general partner does not seek approval from the Conflicts
    Committee and its board of directors determines that the
    resolution or course of action taken with respect to the
    conflict of interest satisfies either of the standards set forth
    in the bullet points above, then it will be presumed that, in
    making its decision, the board of directors, which may include
    board members affected by the conflict of interest, acted in
    good faith, and in any proceeding brought by or on behalf of any
    limited partner or the partnership, the person bringing or
    prosecuting such proceeding will have the burden of overcoming
    such presumption.  These standards reduce the obligations to
    which our general partner would otherwise be held.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    In addition to the other more specific provisions limiting the
    obligations of our general partner, our partnership agreement
    further provides that our general partner and its officers and
    directors will not be liable for monetary damages to us, our
    limited partners or assignees for errors of judgment or for any
    acts or omissions unless there has been a final and
    non-appealable judgment by a court of competent jurisdiction
    determining that our general partner or its officers and
    directors acted in bad faith or engaged in fraud or willful
    misconduct or, in the case of a criminal matter, acted with
    knowledge that the conduct was unlawful.
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    154
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Rights and remedies of unitholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    The Delaware Act generally provides that a limited partner may
    institute legal action on behalf of the partnership to recover
    damages from a third party where a general partner has refused
    to institute the action or where an effort to cause a general
    partner to do so is not likely to succeed.  These actions
    include actions against a general partner for breach of its
    fiduciary duties or of the partnership agreement.  In addition,
    the statutory or case law of some jurisdictions may permit a
    limited partner to institute legal action on behalf of himself
    and all other similarly situated limited partners to recover
    damages from a general partner for violations of its fiduciary
    duties to the limited partners.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to become one of our limited partners, a common
    unitholder is required to agree to be bound by the provisions of
    the partnership agreement, including the provisions discussed
    above. Please read &#147;Description of the Common
    Units&#160;&#151; Transfer of Common Units.&#148; This is in
    accordance with the policy of the Delaware Act favoring the
    principle of freedom of contract and the enforceability of
    partnership agreements. The failure of a limited partner or
    assignee to sign a partnership agreement does not render the
    partnership agreement unenforceable against that person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under our partnership agreement, we must indemnify our general
    partner and its officers, directors and managers, to the fullest
    extent permitted by law, against liabilities, costs and expenses
    incurred by our general partner or these other persons. We must
    provide this indemnification unless there has been a final and
    non-appealable judgment by a court of competent jurisdiction
    determining that these persons acted in bad faith or engaged in
    fraud or willful misconduct or, in the case of a criminal
    matter, acted with knowledge that the conduct was unlawful. We
    also must provide this indemnification for criminal proceedings
    when our general partner or these other persons acted with no
    knowledge that their conduct was unlawful. Thus, our general
    partner could be indemnified for its negligent acts if it met
    the requirements set forth above. To the extent that these
    provisions purport to include indemnification for liabilities
    arising under the Securities Act of 1933, or the Securities Act,
    in the opinion of the SEC, such indemnification is contrary to
    public policy and therefore unenforceable. Please read &#147;The
    Partnership Agreement&#160;&#151; Indemnification.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    155
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='201'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF THE COMMON UNITS</FONT></B>
</DIV>

</A>
<A name='202'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The common units represent limited partner interests in us. The
    holders of common units, along with the holders of subordinated
    units, are entitled to participate in partnership distributions
    and are entitled to exercise the rights and privileges available
    to limited partners under our partnership agreement. For a
    description of the relative rights and preferences of holders of
    common units and subordinated units and our general partner in
    and to partnership distributions, please read this section and
    &#147;How We Make Cash Distributions.&#148; For a description of
    the rights and privileges of limited partners under our
    partnership agreement, including voting rights, please read
    &#147;The Partnership Agreement.&#148;
</DIV>

<A name='203'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent and Registrar</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Duties</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    will serve as registrar and transfer agent for the common units.
    We pay all fees charged by the transfer agent for transfers of
    common units, except the following that must be paid by our
    unitholders:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    surety bond premiums to replace lost or stolen certificates, or
    to cover taxes and other governmental charges in connection
    therewith;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    special charges for services requested by a holder of a common
    unit;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    other similar fees or charges.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There is no charge to our unitholders for disbursements of our
    cash distributions. We will indemnify the transfer agent, its
    agents and each of their respective stockholders, directors,
    officers and employees against all claims and losses that may
    arise out of acts performed or omitted for its activities in
    that capacity, except for any liability due to any gross
    negligence or intentional misconduct of such person or entity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Resignation
    or Removal</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The transfer agent may resign, by notice to us, or be removed by
    us. The resignation or removal of the transfer agent will become
    effective upon our appointment of a successor transfer agent and
    registrar and its acceptance of the appointment. If no successor
    has been appointed and has accepted the appointment within
    30&#160;days after notice of the resignation or removal, our
    general partner may act as the transfer agent and registrar
    until a successor is appointed.
</DIV>

<A name='204'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    of Common Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The transfer of the common units to persons that purchase
    directly from the underwriters will be accomplished through the
    proper completion, execution and delivery of a transfer
    application by the investor. Any later transfers of the common
    units will not be recorded by the transfer agent or recognized
    by us unless the transferee executes and delivers a properly
    completed transfer application. By executing and delivering a
    transfer application, a transferee of common units:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    becomes the record holder of the transferred common units and is
    an assignee until admitted into our partnership as a limited
    partner;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    automatically requests admission as a limited partner in our
    partnership;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    executes and agrees to be bound by the terms and conditions of
    our partnership agreement;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    represents that such transferee has the capacity, power and
    authority to enter into the partnership agreement;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    grants powers of attorney to the executive officers of our
    general partner and any liquidator of us as specified in the
    partnership agreement;&#160;and
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    156
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    gives the consents, covenants, representations and approvals
    contained in our partnership agreement, such as the approval of
    all transactions and agreements we are entering into in
    connection with this offering.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An assignee will become a limited partner of our partnership for
    the transferred common units automatically upon the recording of
    the transfer on our books and records. Our general partner will
    cause any unrecorded transfers for which a properly completed
    and duly executed transfer application has been received to be
    recorded on our books and records no less frequently than
    quarterly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A transferee&#146;s broker, agent or nominee may complete,
    execute and deliver a transfer application. We are entitled to
    treat the nominee holder of common units as the absolute owner
    thereof. In that case, the beneficial holder&#146;s rights are
    limited solely to those that it has against the nominee holder
    as a result of any agreement between the beneficial owner and
    the nominee holder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Common units are securities and are transferable according to
    the laws governing transfer of securities. In addition to other
    rights acquired upon transfer, the transferor gives the
    transferee the right to request admission as a limited partner
    in our partnership for the transferred common units. A purchaser
    or transferee of common units who does not execute and deliver a
    properly completed transfer application obtains only:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the right to transfer such common units to a purchaser or other
    transferee;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the right to transfer the right to seek admission as a limited
    partner in our partnership with respect to the transferred
    common units.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Thus, a purchaser or transferee of common units who does not
    execute and deliver a properly completed transfer application:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    will not receive cash distributions;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    will not be allocated any of our income, gain, deduction, losses
    or credits for federal income tax or other tax purposes;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    may not receive some federal income tax information or reports
    furnished to record holders of common units;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    will have no voting rights;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    unless the common units are held in a nominee or &#147;street
    name&#148; account and the nominee or broker has executed and
    delivered a transfer application and certification as to itself
    and any beneficial holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The transferor of common units has a duty to provide the
    transferee with all information that may be necessary to
    transfer such common units. The transferor does not have a duty
    to ensure the execution of the transfer application by the
    transferee and has no liability or responsibility if the
    transferee neglects or chooses not to execute and deliver a
    properly completed transfer application to the transfer agent.
    Please read &#147;The Partnership Agreement&#160;&#151; Status
    as Limited Partner or Assignee.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Until common units have been transferred on our books, we and
    the transfer agent may treat the record holder of such common
    units as the absolute owner for all purposes, except as
    otherwise required by law or stock exchange regulations.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    157
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='205'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    PARTNERSHIP AGREEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the material provisions of our
    partnership agreement. The form of our partnership agreement is
    included in this prospectus as <U>Appendix&#160;A.</U> We will
    provide prospective investors with a copy of this agreement upon
    request at no charge.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We summarize the following provisions of our partnership
    agreement elsewhere in this prospectus:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    with regard to distributions of available cash, please read
    &#147;How We Make Cash Distributions&#148;;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    with regard to the fiduciary duties of our general partner,
    please read &#147;Conflicts of Interest and Fiduciary
    Duties&#148;;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    with regard to the transfer of common units, please read
    &#147;Description of the Common Units&#160;&#151; Transfer of
    Common Units&#148;;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    with regard to allocations of taxable income and taxable loss,
    please read &#147;Material Federal Income Tax Consequences.&#148;
</TD>
</TR>

</TABLE>

<A name='206'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Organization
    and Duration</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were organized in August 2007 and have a perpetual existence.
</DIV>

<A name='207'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purpose</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our purpose under the partnership agreement is limited to any
    business activities that are approved by our general partner and
    in any event that lawfully may be conducted by a limited
    partnership organized under Delaware law; provided that our
    general partner may not cause us to engage, directly or
    indirectly, in any business activity that our general partner
    determines would cause us to be treated as an association
    taxable as a corporation or otherwise taxable as an entity for
    federal income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although our general partner has the power to cause us, our
    operating company and its subsidiaries to engage in activities
    other than coal mining and marketing, our general partner may
    decline to do so free of any fiduciary duty or obligation
    whatsoever to us or the limited partners, including any duty to
    act in good faith or in the best interests of us or the limited
    partners. However, any decision by our general partner to cause
    us or our subsidiaries to invest in activities will be subject
    to its fiduciary duties as modified by our partnership
    agreement. In general, our general partner is authorized to
    perform all acts it determines to be necessary or appropriate to
    carry out our purposes and to conduct our business.
</DIV>

<A name='208'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Power of
    Attorney</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each limited partner and each person who acquires a unit from a
    unitholder and executes and delivers a transfer application and
    certification, grants to our general partner and, if appointed,
    a liquidator, a power of attorney to, among other things,
    execute and file documents required for our qualification,
    continuance, or dissolution. The power of attorney also grants
    our general partner the authority to amend, and to make consents
    and waivers under, our partnership agreement.
</DIV>

<A name='209'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Capital
    Contributions</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unitholders are not obligated to make additional capital
    contributions, except as described below under
    &#147;&#151;&#160;Limited Liability.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    158
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='210'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting
    Rights</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following matters require the limited partner vote specified
    below. Various matters require the approval of a &#147;unit
    majority,&#148; which means:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    during the subordination period, the approval of a majority of
    the outstanding common units, excluding those common units held
    by our general partner and its affiliates, and a majority of the
    outstanding subordinated units, each voting as a separate
    class;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    after the subordination period, the approval of a majority of
    the outstanding common units.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By virtue of the exclusion of those common units held by our
    general partner and its affiliates from the required vote, and
    by their ownership of all of the subordinated units, during the
    subordination period our general partner and its affiliates do
    not have the ability to ensure passage of, but do have the
    ability to ensure defeat of, any amendment that requires a unit
    majority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In voting their common and subordinated units, our general
    partner and its affiliates will have no fiduciary duty or
    obligation whatsoever to us or our limited partners, including
    any duty to act in good faith or in the best interests of us and
    our limited partners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Issuance of additional units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    No approval rights.
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Amendment of our partnership agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Certain amendments may be made by our general partner without
    the approval of our limited partners.  Other amendments
    generally require the approval of a unit majority.  Please read
    &#147;&#151; Amendment of Our Partnership Agreement.&#148;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Merger of our partnership or the sale of all or substantially
    all of our assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Unit majority in certain circumstances.  Please read
    &#147;&#151;&#160;Merger, Sale or Other Disposition of
    Assets.&#148;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Continuation of our partnership upon dissolution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Unit majority.  Please read &#147;&#151; Termination and
    Dissolution.&#148;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Withdrawal of our general partner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    No approval rights.  Please read &#147;&#151; Withdrawal or
    Removal of Our General Partner.&#148;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Removal of our general partner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Not less than 80% of the outstanding common units and
    subordinated units, voting as a single class, including common
    units and subordinated units held by our general partner and its
    affiliates.  Please read &#147;&#151; Withdrawal or Removal of
    Our General Partner.&#148;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Transfer of our general partner interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    After 2020, our general partner may transfer all or any of its
    general partner interest in us without approval.  Prior to such
    date, the approval of a majority of the outstanding common
    units, excluding common units held by our general partner and
    its affiliates, is required for a transfer of the general
    partner interest.  Please read &#147;&#151; Transfer of General
    Partner Interest.&#148;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Transfer of incentive distribution rights
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    No approval rights.  Please read &#147;&#151; Transfer of
    Incentive Distribution Rights.&#148;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Transfer of ownership interests in our general partner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    No approval required at any time.  Please read &#147;&#151;
    Transfer of Ownership Interests in Our General Partner.&#148;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<A name='211'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limited
    Liability</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Assuming that a limited partner does not participate in the
    control of our business within the meaning of the Delaware Act
    and that it otherwise acts in conformity with the provisions of
    our partnership agreement, its
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    159
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    liability under the Delaware Act will be limited, subject to
    possible exceptions, to the amount of capital they are obligated
    to contribute to us for their common units plus their share of
    any undistributed profits and assets. If it were determined,
    however, that the right of, or exercise of the right by, the
    limited partners as a group:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    to remove or replace our general partner;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    to approve some amendments to our partnership agreement;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    to take other action under our partnership agreement;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    constituted &#147;participation in the control&#148; of our
    business for the purposes of the Delaware Act, then the limited
    partners could be held personally liable for our obligations
    under the laws of Delaware, to the same extent as our general
    partner. This liability would extend to persons who transact
    business with us who reasonably believe that a limited partner
    is a general partner. Neither our partnership agreement nor the
    Delaware Act specifically provides for legal recourse against
    our general partner if a limited partner were to lose limited
    liability through any fault of our general partner. While this
    does not mean that a limited partner could not seek legal
    recourse, we know of no precedent for such a claim in Delaware
    case law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Delaware Act, a limited partnership may not make a
    distribution to a partner if, after the distribution, all
    liabilities of the limited partnership, other than liabilities
    to partners on account of their partnership interests and
    liabilities for which the recourse of creditors is limited to
    specific property of the partnership, would exceed the fair
    value of the assets of the limited partnership. For the purpose
    of determining the fair value of the assets of a limited
    partnership, the Delaware Act provides that the fair value of
    property subject to liability for which recourse of creditors is
    limited shall be included in the assets of the limited
    partnership only to the extent that the fair value of that
    property exceeds the nonrecourse liability. The Delaware Act
    provides that a limited partner who receives a distribution and
    knew at the time of the distribution that the distribution was
    in violation of the Delaware Act shall be liable to the limited
    partnership for the amount of the distribution for three years.
    Under the Delaware Act, an assignee who becomes a limited
    partner of a limited partnership is liable for the obligations
    of its assignor to make contributions to the partnership, except
    the assignee is not obligated for liabilities unknown to him at
    the time he became a limited partner and that could not be
    ascertained from the partnership agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our subsidiaries conduct business in Kentucky and Ohio. Our
    subsidiaries may conduct business in other states in the future.
    Maintenance of our limited liability as a member of our
    operating company may require compliance with legal requirements
    in the jurisdictions in which our operating company conducts
    business, including qualifying our subsidiaries to do business
    there.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Limitations on the liability of limited partners for the
    obligations of a limited partnership have not been clearly
    established in many jurisdictions. If, by virtue of our
    membership interest in our operating company or otherwise, it
    were determined that we were conducting business in any state
    without compliance with the applicable limited partnership or
    limited liability company statute, or that the right or exercise
    of the right by the limited partners as a group to remove or
    replace our general partner, to approve some amendments to our
    partnership agreement, or to take other action under our
    partnership agreement constituted &#147;participation in the
    control&#148; of our business for purposes of the statutes of
    any relevant jurisdiction, then the limited partners could be
    held personally liable for our obligations under the law of that
    jurisdiction to the same extent as the general partner under the
    circumstances. We will operate in a manner that our general
    partner considers reasonable and necessary or appropriate to
    preserve the limited liability of the limited partners.
</DIV>

<A name='212'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Issuance
    of Additional Securities</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement authorizes us to issue an unlimited
    number of additional partnership securities for the
    consideration and on the terms and conditions determined by our
    general partner without the approval of our limited partners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is possible that we will fund acquisitions through the
    issuance of additional common units, subordinated units or other
    partnership securities. Holders of any additional common units
    we issue will be entitled to share equally with the
    then-existing holders of common units in our distributions of
    available cash.
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    160
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the issuance of additional common units or other
    partnership securities may dilute the value of the interests of
    the then-existing holders of common units in our net assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In accordance with Delaware law and the provisions of our
    partnership agreement, we may also issue additional partnership
    securities that, as determined by our general partner, may have
    rights to distributions or special voting rights to which the
    common units are not entitled. In addition, our partnership
    agreement does not prohibit the issuance by our subsidiaries of
    equity securities, which may effectively rank senior to the
    common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner&#146;s 2.0% general partner interest is
    subject to dilution. If we issue additional partnership
    securities in the future, our general partner must either make
    additional capital contributions to us to maintain its 2.0%
    general partner interest or its interests will be effectively
    diluted. In addition, our general partner will have the right,
    which it may from time to time assign in whole or in part to any
    of its affiliates, to purchase common units, subordinated units
    or other partnership securities to the extent necessary to
    maintain its and its affiliates&#146; limited partner percentage
    interest in us, whenever, and on the same terms that, we issue
    those securities to persons other than our general partner and
    its affiliates. The holders of common units will not have
    preemptive rights to acquire additional common units or other
    partnership securities.
</DIV>

<A name='213'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Amendment
    of Our Partnership Agreement</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">General</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amendments to our partnership agreement may be proposed only by
    our general partner. However, our general partner will have no
    duty or obligation to propose any amendment and may decline to
    do so free of any fiduciary duty or obligation whatsoever to us
    or our limited partners, including any duty to act in good faith
    or in the best interests of us or our limited partners. In order
    to adopt a proposed amendment, other than the amendments
    discussed below, our general partner must seek written approval
    of the holders of the number of units required to approve the
    amendment or call a meeting of the limited partners to consider
    and vote upon the proposed amendment. Except as described below,
    an amendment must be approved by a unit majority.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Prohibited
    Amendments</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No amendment may:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;enlarge the obligations of any limited partner without
    its consent, unless approved by at least a majority of the type
    or class of limited partner interests so affected;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;enlarge the obligations of, restrict in any way any
    action by or rights of, or reduce in any way the amounts
    distributable, reimbursable or otherwise payable by us to our
    general partner or any of its affiliates without the consent of
    our general partner, which may be given or withheld at its
    option.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provision of our partnership agreement preventing the
    amendments having the effects described in clauses&#160;(1) and
    (2)&#160;above can be amended upon the approval of the holders
    of at least 90% of the outstanding units voting together as a
    single class (including units owned by our general partner and
    its affiliates). Upon the consummation of this offering,
    affiliates of our general partner will
    own&#160;&#160;&#160;&#160;&#160;% of the outstanding common and
    subordinated units as a single class
    (or&#160;&#160;&#160;&#160;&#160;% of the outstanding common and
    subordinated units as a single class, if the underwriters
    exercise their option to purchase additional common units in
    full).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">No
    Unitholder Approval</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may generally make amendments to the
    partnership agreement without the approval of any limited
    partner or assignee to reflect:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;a change in our name, the location of our principal
    place of business, our registered agent or our registered office;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;the admission, substitution, withdrawal or removal of
    partners in accordance with our partnership agreement;
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    161
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;a change that our general partner determines to be
    necessary or appropriate for us to qualify or to continue our
    qualification as a limited partnership or a partnership in which
    the limited partners have limited liability under the laws of
    any state or to ensure that neither we, our operating company,
    nor its subsidiaries will be treated as an association taxable
    as a corporation or otherwise taxed as an entity for federal
    income tax purposes;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;a change in our fiscal year or taxable year and related
    changes;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;an amendment that is necessary, in the opinion of our
    counsel, to prevent us or our general partner or its directors,
    officers, agents, or trustees from in any manner being subjected
    to the provisions of the Investment Company Act of 1940, the
    Investment Advisors Act of 1940, or &#147;plan asset&#148;
    regulations adopted under the Employee Retirement Income
    Security Act of 1974 (&#147;ERISA&#148;), whether or not
    substantially similar to plan asset regulations currently
    applied or proposed;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (6)&#160;an amendment that our general partner determines to be
    necessary or appropriate for the authorization of additional
    partnership securities or rights to acquire partnership
    securities;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (7)&#160;any amendment expressly permitted in our partnership
    agreement to be made by our general partner acting alone;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (8)&#160;an amendment effected, necessitated, or contemplated by
    a merger agreement that has been approved under the terms of our
    partnership agreement;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (9)&#160;any amendment that our general partner determines to be
    necessary or appropriate for the formation by us of, or our
    investment in, any corporation, partnership, joint venture,
    limited liability company or other entity, as otherwise
    permitted by our partnership agreement;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (10)&#160;mergers with, conveyances to or conversions to another
    limited liability entity that is newly formed and has no assets,
    liabilities or operations at the time of the merger, conveyance
    or conversion other than those it receives by way of the merger,
    conveyance or conversion;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (11)&#160;any other amendments substantially similar to any of
    the matters described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, our general partner may make amendments to the
    partnership agreement without the approval of any limited
    partner or assignee if our general partner determines that those
    amendments:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;do not adversely affect the limited partners (or any
    particular class of limited partners) in any material respect;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;are necessary or appropriate to satisfy any
    requirements, conditions, or guidelines contained in any
    opinion, directive, order, ruling, or regulation of any federal
    or state agency or judicial authority or contained in any
    federal or state statute;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;are necessary or appropriate to facilitate the trading
    of limited partner interests or to comply with any rule,
    regulation, guideline, or requirement of any securities exchange
    on which the limited partner interests are or will be listed for
    trading;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;are necessary or appropriate for any action taken by
    our general partner relating to splits or combinations of units
    under the provisions of our partnership agreement;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;are required to effect the intent expressed in the
    contribution agreement, this prospectus or the intent of the
    provisions of our partnership agreement or are otherwise
    contemplated by our partnership agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Opinion
    of Counsel and Limited Partner Approval</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner will not be required to obtain an opinion of
    counsel that an amendment will not result in a loss of limited
    liability to the limited partners or result in our being treated
    as an entity for federal income tax purposes in connection with
    any of the amendments described above under &#147;&#151;&#160;No
    Unitholder Approval.&#148; No other amendments to our
    partnership agreement will become effective without the approval
    of
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    162
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    holders of at least 90% of the outstanding units voting as a
    single class unless we first obtain an opinion of counsel to the
    effect that the amendment will not affect the limited liability
    under applicable law of any of our limited partners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the above restrictions, any amendment that would
    have a material adverse effect on the rights or preferences of
    any type or class of outstanding units in relation to other
    classes of units will require the approval of at least a
    majority of the type or class of units so affected. Any
    amendment that reduces the voting percentage required to take
    any action must be approved by the affirmative vote of limited
    partners whose aggregate outstanding units constitute not less
    than the voting requirement sought to be reduced.
</DIV>

<A name='214'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Merger,
    Sale or Other Disposition of Assets</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A merger or consolidation of us requires the prior consent of
    our general partner. However, our general partner will have no
    duty or obligation to consent to any merger or consolidation and
    may decline to do so free of any fiduciary duty or obligation
    whatsoever to us or the limited partners, including any duty to
    act in good faith or in the best interest of us or our limited
    partners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, our partnership agreement generally prohibits our
    general partner, without the prior approval of the holders of a
    unit majority, from causing us to, among other things, sell,
    exchange, or otherwise dispose of all or substantially all of
    our and our subsidiaries&#146; assets in a single transaction or
    a series of related transactions, including by way of merger,
    consolidation, other combination or sale of ownership interests
    of our subsidiaries. Our general partner may, however, mortgage,
    pledge, hypothecate, or grant a security interest in all or
    substantially all of our and our subsidiaries&#146; assets
    without that approval. Our general partner may also sell all or
    substantially all of our and our subsidiaries&#146; assets under
    a foreclosure or other realization upon those encumbrances
    without that approval.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the conditions specified in our partnership agreement are
    satisfied, our general partner may convert us or any of our
    subsidiaries into a new limited liability entity or merge us or
    any of our subsidiaries into, or convey some or all of our
    assets to, a newly formed entity if the sole purpose of that
    merger or conveyance is to effect a mere change in our legal
    form into another limited liability entity. The limited partners
    are not entitled to dissenters&#146; rights of appraisal under
    our partnership agreement or applicable Delaware law in the
    event of a conversion, merger or consolidation, a sale of
    substantially all of our assets, or any other transaction or
    event.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may consummate any merger or consolidation
    without the approval of our limited partners if we are the
    surviving entity in the transaction, the transaction would not
    result in an amendment to our partnership agreement that the
    general partner could not adopt unilaterally, each of our units
    will be an identical unit of our partnership following the
    transaction, the units to be issued do not exceed 20% of our
    outstanding units immediately prior to the transaction and our
    general partner has received an opinion of counsel regarding
    certain limited liability and tax matters.
</DIV>

<A name='215'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Termination
    and Dissolution</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will continue as a limited partnership until terminated under
    our partnership agreement. We will dissolve upon:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;the withdrawal or removal of our general partner or any
    other event that results in its ceasing to be our general
    partner other than by reason of a transfer of its general
    partner interest in accordance with our partnership agreement or
    withdrawal or removal following approval and admission of a
    successor general partner;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;the election of our general partner to dissolve us, if
    approved by the holders of a unit majority;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;the entry of a decree of judicial dissolution of our
    partnership;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;at any time there are no limited partners, unless the
    partnership is continued without dissolution in accordance with
    the Delaware Act.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    163
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon a dissolution under clause (1), the holders of a unit
    majority may also elect, within specific time limitations, to
    continue our business on the same terms and conditions described
    in our partnership agreement and appoint as a successor general
    partner an entity approved by the holders of a unit majority,
    subject to our receipt of an opinion of counsel to the effect
    that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the action would not result in the loss of limited liability of
    any limited partner;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    neither our partnership nor any of our subsidiaries would be
    treated as an association taxable as a corporation or otherwise
    be taxable as an entity for federal income tax purposes upon the
    exercise of that right to continue (to the extent not already so
    treated or taxed).
</TD>
</TR>

</TABLE>

<A name='216'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidation
    and Distribution of Proceeds</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon our dissolution, unless we are continued as a limited
    partnership, the liquidator authorized to wind up our affairs
    will, acting with all of the powers of our general partner that
    are necessary or appropriate, liquidate our assets and apply the
    proceeds of the liquidation as described in &#147;How We Make
    Cash Distributions&#160;&#151; Distributions of Cash Upon
    Liquidation.&#148; The liquidator may defer liquidation or
    distribution of our assets for a reasonable period of time or
    distribute assets to partners in kind if it determines that a
    sale would be impractical or would cause undue loss to our
    partners.
</DIV>

<A name='217'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Withdrawal
    or Removal of Our General Partner</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may withdraw as general partner without
    obtaining approval of any unitholder by giving
    90&#160;days&#146; written notice, and that withdrawal will not
    constitute a violation of our partnership agreement. In
    addition, our partnership agreement permits our general partner
    in some instances to sell or otherwise transfer all of its
    general partner interest and incentive distribution rights in us
    without the approval of the limited partners. Please read
    &#147;&#151;&#160;Transfer of General Partner Interest&#148; and
    &#147;&#151;&#160;Transfer of Incentive Distribution
    Rights.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon a voluntary withdrawal of our general partner after giving
    written notice to all partners, a unit majority may select a
    successor to that withdrawing general partner. If a successor is
    not elected, or is elected but an opinion of counsel regarding
    limited liability and tax matters cannot be obtained, we will be
    dissolved, wound up, and liquidated, unless within a specified
    period of time after that withdrawal, the holders of a unit
    majority agree in writing to continue our business and to
    appoint a successor general partner. Please read
    &#147;&#151;&#160;Termination and Dissolution.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may not be removed unless that removal is
    approved by the vote of the holders of not less than 80% of all
    outstanding units, voting together as a single class, including
    units held by our general partner and its affiliates, and we
    receive an opinion of counsel regarding limited liability and
    tax matters. Any removal of our general partner is also subject
    to the approval of a successor general partner by the vote of
    the holders of a majority of the outstanding common units and
    subordinated units, voting as separate classes. The ownership of
    more than 20% of the outstanding units by our general partner
    and its affiliates would give them the practical ability to
    prevent our general partner&#146;s removal. At the closing of
    this offering, affiliates of our general partner will
    own&#160;&#160;&#160;&#160;&#160;% of the outstanding units
    (or&#160;&#160;&#160;&#160;&#160;% of the outstanding units, if
    the underwriters exercise their option to purchase additional
    common units in full).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement also provides that if our general
    partner is removed as our general partner without cause and no
    units held by our general partner and its affiliates are voted
    in favor of that removal:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the subordination period will end and all outstanding
    subordinated units will immediately convert into common units on
    a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    any existing arrearages in payment of the minimum quarterly
    distribution on the common units will be extinguished;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our general partner will have the right to convert its general
    partner interest and its incentive distribution rights into
    common units or to receive cash in exchange for those interests
    based on the fair market value of the interests at the time.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    164
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of removal of our general partner under
    circumstances where cause exists or withdrawal of our general
    partner where that withdrawal violates our partnership
    agreement, a successor general partner will have the option to
    purchase the general partner interest and incentive distribution
    rights of the departing general partner for a cash payment equal
    to the fair market value of those interests. Under all other
    circumstances where our general partner withdraws or is removed
    by the limited partners, the departing general partner will have
    the option to require the successor general partner to purchase
    the general partner interest of the departing general partner
    and its incentive distribution rights for their fair market
    value. In each case, this fair market value will be determined
    by agreement between the departing general partner and the
    successor general partner. If no agreement is reached, an
    independent investment banking firm or other independent expert
    selected by the departing general partner and the successor
    general partner will determine the fair market value. Or, if the
    departing general partner and the successor general partner
    cannot agree upon an expert, then an expert chosen by agreement
    of the experts selected by each of them will determine the fair
    market value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the option described above is not exercised by either the
    departing general partner or the successor general partner, the
    departing general partner&#146;s general partner interest and
    its incentive distribution rights will automatically convert
    into common units equal to the fair market value of those
    interests as determined by an investment banking firm or other
    independent expert selected in the manner described in the
    preceding paragraph.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, we will be required to reimburse the departing
    general partner for all amounts due to it, including, without
    limitation, all employee-related liabilities, including
    severance liabilities, incurred for the termination of any
    employees employed by the departing general partner or its
    affiliates for our benefit.
</DIV>

<A name='218'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    of General Partner Interest</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2020,
    our general partner may not transfer all or any part of its
    general partner interests in us to another person.
    After&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2020,
    our general partner may transfer all or any part of its general
    partner interest in us to another person without the approval of
    the unitholders. As a condition of this transfer, the transferee
    must, among other things, assume the rights and duties of our
    general partner, agree to be bound by the provisions of our
    partnership agreement, and furnish an opinion of counsel
    regarding limited liability and tax matters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner and its affiliates may at any time transfer
    units to one or more persons, without unitholder approval,
    except that they may not transfer subordinated units to us.
</DIV>

<A name='219'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    of Ownership Interests in Our General Partner</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At any time, the owners of our general partner may sell or
    transfer all or part of their ownership interests in our general
    partner to an affiliate or a third party without the approval of
    our unitholders.
</DIV>

<A name='220'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    of Incentive Distribution Rights</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner or any other holder of incentive
    distribution rights may transfer any or all of its incentive
    distribution rights without unitholder approval.
</DIV>

<A name='221'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Change of
    Management Provisions</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement contains specific provisions that are
    intended to discourage a person or group from attempting to
    remove our general partner or otherwise change our management.
    If any person or group other than our general partner and its
    affiliates acquires beneficial ownership of 20% or more of any
    class of units, that person or group loses voting rights on all
    of its units. This loss of voting rights does not apply to any
    person or group that acquires the units from our general partner
    or its affiliates and any transferees of that person or group
    approved by our general partner or to any person or group who
    acquires the units with the prior approval of the board of
    directors of our general partner.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    165
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If our general partner is removed without cause and no units
    held by our general partner and its affiliates are voted in
    favor of that removal, our partnership agreement provides that,
    among other things, (i)&#160;all outstanding subordinated units
    will immediately convert into common units, (ii)&#160;any
    existing arrearages in payment of the minimum quarterly
    distribution on the common units will be extinguished and
    (iii)&#160;our general partner will have the right to convert
    its general partner interest and incentive distribution rights
    into common units or receive cash in exchange for those
    interests. Please read &#147;&#151;&#160;Withdrawal or Removal
    of Our General Partner.&#148;
</DIV>

<A name='222'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limited
    Call Right</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If at any time our general partner and its affiliates own more
    than 80% of the outstanding limited partner interests of any
    class, our general partner will have the right, which it may
    assign in whole or in part to any of its affiliates or to us, to
    acquire all, but not less than all, of the remaining limited
    partner interests of the class held by unaffiliated persons as
    of a record date to be selected by our general partner, on at
    least 10 but not more than 60&#160;days notice. The purchase
    price in the event of this purchase is the greater of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the highest cash price paid by either of our general partner or
    any of its affiliates for any partnership securities of the
    class purchased within the 90&#160;days preceding the date on
    which our general partner first mails notice of its election to
    purchase those partnership securities;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the current market price as of the date three days before the
    date the notice is mailed.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of our general partner&#146;s right to purchase
    outstanding limited partner interests, a holder of limited
    partner interests may have his limited partner interests
    purchased at an undesirable time or price. The tax consequences
    to a unitholder of the exercise of this call right are the same
    as a sale by that unitholder of his common units in the market.
    Please read &#147;Material Federal Income Tax
    Consequences&#160;&#151; Disposition of Common Units.&#148;
</DIV>

<A name='223'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Meetings;
    Voting</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as described below regarding a person or group owning 20%
    or more of any class of units then outstanding, unitholders or
    assignees who are record holders of units on the record date
    will be entitled to notice of, and to vote at, meetings of our
    limited partners and to act upon matters for which approvals may
    be solicited. Common units that are owned by an assignee who is
    a record holder, but who has not yet been admitted as a limited
    partner, will be voted by our general partner at the written
    direction of the record holder. Absent direction of this kind,
    the common units will not be voted, except that, in the case of
    common units held by our general partner on behalf of
    non-citizen assignees, our general partner will distribute the
    votes on those common units in the same ratios as the votes of
    limited partners on other units are cast.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner does not anticipate that any meeting of
    unitholders will be called in the foreseeable future. Any action
    that is required or permitted to be taken by the unitholders may
    be taken either at a meeting of the unitholders or without a
    meeting if consents in writing describing the action so taken
    are signed by holders of the number of units necessary to
    authorize or take that action at a meeting. Meetings of the
    unitholders may be called by our general partner or by
    unitholders owning at least 20% of the outstanding units of the
    class for which a meeting is proposed. Unitholders may vote
    either in person or by proxy at meetings. The holders of a
    majority of the outstanding units of the class or classes for
    which a meeting has been called, represented in person or by
    proxy, will constitute a quorum unless any action by the
    unitholders requires approval by holders of a greater percentage
    of the units, in which case the quorum will be the greater
    percentage. The units representing the general partner interest
    are units for distribution and allocation purposes, but do not
    entitle our general partner to any vote other than its rights as
    general partner under our partnership agreement, will not be
    entitled to vote on any action required or permitted to be taken
    by the unitholders and will not count toward or be considered
    outstanding when calculating required votes, determining the
    presence of a quorum, or for similar purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each record holder of a unit has a vote according to its
    percentage interest in us, although additional limited partner
    interests having special voting rights could be issued. Please
    read &#147;&#151;&#160;Issuance of Additional
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    166
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Securities.&#148; However, if at any time any person or group,
    other than our general partner and its affiliates, or a direct
    or subsequently approved transferee of our general partner or
    its affiliates, acquires, in the aggregate, beneficial ownership
    of 20% or more of any class of units then outstanding, that
    person or group will lose voting rights on all of its units and
    the units may not be voted on any matter and will not be
    considered to be outstanding when sending notices of a meeting
    of unitholders, calculating required votes, determining the
    presence of a quorum, or for other similar purposes. Common
    units held in nominee or street name account will be voted by
    the broker or other nominee in accordance with the instruction
    of the beneficial owner unless the arrangement between the
    beneficial owner and its nominee provides otherwise. Except as
    our partnership agreement otherwise provides, subordinated units
    will vote together with common units as a single class.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any notice, demand, request, report, or proxy material required
    or permitted to be given or made to record holders of common
    units under our partnership agreement will be delivered to the
    record holder by us or by the transfer agent.
</DIV>

<A name='224'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Status as
    Limited Partner or Assignee</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as described above under &#147;&#151;&#160;Limited
    Liability,&#148; the common units will be fully paid, and
    unitholders will not be required to make additional
    contributions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An assignee of a common unit, after executing and delivering a
    transfer application, but pending its admission as a limited
    partner, is entitled to an interest equivalent to that of a
    limited partner for the right to share in allocations and
    distributions from us, including liquidating distributions. Our
    general partner will vote and exercise other powers attributable
    to common units owned by an assignee that has not become a
    limited partner at the written direction of the assignee. Please
    read &#147;&#151;&#160;Meetings; Voting.&#148; Transferees who
    do not execute and deliver a transfer application and
    certification will not be treated as assignees or as record
    holders of common units, and will not receive cash
    distributions, federal income tax allocations, or reports
    furnished to holders of common units unless the common units are
    held in a nominee or &#147;street name&#148; account and the
    nominee or broker has executed and delivered a transfer
    application and certification as to itself and any beneficial
    holders. Please read &#147;Description of the Common
    Units&#160;&#151; Transfer of Common Units.&#148;
</DIV>

<A name='225'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Non-Citizen
    Assignees; Redemption</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we are or become subject to federal, state, or local laws or
    regulations that, in the determination of our general partner,
    create a substantial risk of cancellation or forfeiture of any
    property in which we have an interest in because of the
    nationality, citizenship or other related status of any limited
    partner or assignee, our general partner may require each
    limited partner or assignee to furnish information about his
    nationality, citizenship or related status. If a limited partner
    or assignee fails to furnish information about his nationality,
    citizenship or other related status within 30&#160;days after a
    request for the information or our general partner determines
    after receipt of the information that the limited partner or
    assignee is not an eligible citizen, the limited partner or
    assignee may be treated as a non-citizen assignee. In addition
    to other limitations on the rights of an assignee that is not a
    limited partner, a non-citizen assignee does not have the right
    to direct the voting of his units and may not receive
    distributions in kind upon our liquidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Furthermore, we have the right to redeem all of the common and
    subordinated units of any holder that our general partner
    concludes is not an eligible citizen or fails to furnish the
    information requested by our general partner. The redemption
    price in the event of such redemption for each unit held by such
    unitholder will be the lesser of (i)&#160;their current market
    price and (ii)&#160;the price paid for each such unit by the
    unitholder. The redemption price will be paid in cash or by
    delivery of a promissory note, as determined by our general
    partner. Any such promissory note will bear interest at the rate
    of 5% annually and be payable in three equal annual installments
    of principal and accrued interest, commencing one year after the
    redemption date.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    167
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='226'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnification</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under our partnership agreement, we will indemnify the following
    persons in most circumstances, to the fullest extent permitted
    by law, from and against all losses, claims, damages, or similar
    events:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;our general partner;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;any departing general partner;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;any person who is or was an affiliate of our general
    partner or any departing general partner;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (4)&#160;any person who is or was an officer, director, member,
    partner, fiduciary or trustee of any entity described in (1),
    (2)&#160;or (3)&#160;above or any of their subsidiaries;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (5)&#160;any person who is or was serving as a director,
    officer, member, partner, fiduciary or trustee of another person
    at the request of our general partner or any departing general
    partner or any of their affiliates;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (6)&#160;any person designated by our general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any indemnification under these provisions will only be out of
    our assets. Unless it otherwise agrees, our general partner will
    not be personally liable for, or have any obligation to
    contribute or loan funds or assets to us to enable us to
    effectuate, indemnification. We may purchase insurance against
    liabilities asserted against and expenses incurred by persons
    for our activities, regardless of whether we would have the
    power to indemnify the person against liabilities under our
    partnership agreement.
</DIV>

<A name='227'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reimbursement
    of Expenses</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement requires us to reimburse our general
    partner for all direct and indirect expenses it incurs or
    payments it makes on our behalf and all other expenses allocable
    to us or otherwise incurred by our general partner in connection
    with operating our business. These expenses include salary,
    bonus, incentive compensation and other amounts paid to persons
    who perform services for us or on our behalf and expenses
    allocated to our general partner by its affiliates. Our general
    partner is entitled to determine in good faith the expenses that
    are allocable to us.
</DIV>

<A name='228'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Books and
    Reports</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner is required to keep appropriate books of our
    business at our principal offices. The books will be maintained
    for both tax and financial reporting purposes on an accrual
    basis. For fiscal and tax reporting purposes, we use the
    calendar year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will furnish or make available (by posting on our website or
    other reasonable means) to record holders of common units,
    within 120&#160;days after the close of each fiscal year, an
    annual report containing audited financial statements and a
    report on those financial statements by our independent public
    accountants. Except for our fourth quarter, we will also furnish
    or make available summary financial information within
    90&#160;days after the close of each quarter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will furnish each record holder of a unit with information
    reasonably required for tax reporting purposes within
    90&#160;days after the close of each calendar year. This
    information is expected to be furnished in summary form so that
    some complex calculations normally required of partners can be
    avoided. Our ability to furnish this summary information to
    unitholders will depend on the cooperation of unitholders in
    supplying us with specific information. Every unitholder will
    receive information to assist him in determining its federal and
    state tax liability and filing its federal and state income tax
    returns, regardless of whether he supplies us with information.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    168
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='229'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Right to
    Inspect Our Books and Records</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement provides that a limited partner can,
    for a purpose reasonably related to its interest as a limited
    partner, upon reasonable demand and at its own expense, have
    furnished to him:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a current list of the name and last known address of each
    partner;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a copy of our tax returns;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    information as to the amount of cash, and a description and
    statement of the agreed value of any other property or services,
    contributed or to be contributed by each partner and the date on
    which each became a partner;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    copies of our partnership agreement, the certificate of limited
    partnership of the partnership, related amendments, and powers
    of attorney under which they have been executed;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    information regarding the status of our business and financial
    condition;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    any other information regarding our affairs as is just and
    reasonable.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may, and intends to, keep confidential from
    the limited partners trade secrets or other information the
    disclosure of which our general partner believes in good faith
    is not in our best interests or that we are required by law or
    by agreements with third parties to keep confidential.
</DIV>

<A name='231'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Registration
    Rights</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under our partnership agreement, we have agreed to register for
    resale under the Securities Act and applicable state securities
    laws any common units, subordinated units, or other partnership
    securities proposed to be sold by our general partner or any of
    its affiliates or their assignees if an exemption from the
    registration requirements is not otherwise available. These
    registration rights continue for two years following any
    withdrawal or removal of Oxford Resources GP as our general
    partner. We are obligated to pay all expenses incidental to the
    registration, excluding underwriting discounts and commissions.
    Please read &#147;Units Eligible for Future Sale.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    169
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='281'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNITS
    ELIGIBLE FOR FUTURE SALE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the sale of the common units offered by this prospectus,
    C&#038;T Coal and AIM Oxford will hold an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units, respectively
    (or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units if the underwriters exercise their option to purchase
    additional units in full). All of the subordinated units will
    convert into common units at the end of the subordination
    period. The sale of these common and subordinated units could
    have an adverse impact on the price of the common units or on
    any trading market that may develop.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The common units sold in this offering will generally be freely
    transferable without restriction or further registration under
    the Securities Act, except that any common units held by an
    &#147;affiliate&#148; of ours may not be resold publicly except
    in compliance with the registration requirements of the
    Securities Act or under an exemption under Rule&#160;144 or
    otherwise. Rule&#160;144 permits securities acquired by an
    affiliate of the issuer to be sold into the market in an amount
    that does not exceed, during any three-month period, the greater
    of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    1% of the total number of the securities outstanding;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the average weekly reported trading volume of the common units
    for the four weeks prior to the sale.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sales under Rule&#160;144 are also subject to specific manner of
    sale provisions, holding period requirements, notice
    requirements and the availability of current public information
    about us. A person who is not deemed to have been an affiliate
    of ours at any time during the three months preceding a sale,
    and who has beneficially owned his common units for at least six
    months (provided we are in compliance with the current public
    information requirement) or one year (regardless of whether we
    are in compliance with the current public information
    requirement), would be entitled to sell common units under
    Rule&#160;144 without regard to the rule&#146;s public
    information requirements, volume limitations, manner of sale
    provisions and notice requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement provides that we may issue an
    unlimited number of limited partner interests of any type
    without a vote of the unitholders at any time. Any issuance of
    additional common units or other equity securities would result
    in a corresponding decrease in the proportionate ownership
    interest in us represented by, and could adversely affect the
    cash distributions to and market price of, common units then
    outstanding. Please read &#147;The Partnership
    Agreement&#160;&#151; Issuance of Additional Securities.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under our partnership agreement, our general partner and its
    affiliates have the right to cause us to register under the
    Securities Act and applicable state securities laws the offer
    and sale of any common units that they hold. Subject to the
    terms and conditions of the partnership agreement, these
    registration rights allow our general partner and its affiliates
    or their assignees holding any common units to require
    registration of any of these common units and to include any of
    these common units in a registration by us of other common
    units, including common units offered by us or by any
    unitholder. Our general partner and its affiliates will continue
    to have these registration rights for two years following the
    withdrawal or removal of our general partner. In connection with
    any registration of this kind, we will indemnify each unitholder
    participating in the registration and its officers, directors,
    and controlling persons from and against any liabilities under
    the Securities Act or any applicable state securities laws
    arising from the registration statement or prospectus. We will
    bear all costs and expenses incidental to any registration,
    excluding any underwriting discounts and commissions. Except as
    described below, our general partner and its affiliates may sell
    their common units in private transactions at any time, subject
    to compliance with applicable laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C&#038;T&#160;Coal, AIM Oxford, our general partner and the
    executive officers and directors of our general partner have
    agreed not to sell any common units they beneficially own for a
    period of 180&#160;days from the date of this prospectus. Please
    read &#147;Underwriting&#148; for a description of these
    <FONT style="white-space: nowrap">lock-up</FONT>
    provisions.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    170
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='232'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MATERIAL
    FEDERAL INCOME TAX CONSEQUENCES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This section is a summary of the material tax considerations
    that may be relevant to prospective unitholders who are
    individual citizens or residents of the U.S.&#160;and, unless
    otherwise noted in the following discussion, is the opinion of
    Latham&#160;&#038; Watkins LLP, counsel to our general partner
    and us, insofar as it relates to legal conclusions with respect
    to matters of U.S.&#160;federal income tax law. This section is
    based upon current provisions of the Internal Revenue Code of
    1986, as amended (the &#147;Internal Revenue Code&#148;),
    existing and proposed Treasury regulations promulgated under the
    Internal Revenue Code (the &#147;Treasury Regulations&#148;) and
    current administrative rulings and court decisions, all of which
    are subject to change. Later changes in these authorities may
    cause the tax consequences to vary substantially from the
    consequences described below. Unless the context otherwise
    requires, references in this section to &#147;us&#148; or
    &#147;we&#148; are references to Oxford Resource Partners, LP
    and our operating subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discussion does not comment on all federal income
    tax matters affecting us or our unitholders. Moreover, the
    discussion focuses on unitholders who are individual citizens or
    residents of the U.S.&#160;and has only limited application to
    corporations, estates, trusts, nonresident aliens or other
    unitholders subject to specialized tax treatment, such as
    tax-exempt institutions, foreign persons, IRAs, real estate
    investment trusts (REITs) or mutual funds. In addition, the
    discussion only comments, to a limited extent, on state, local,
    and foreign tax consequences. Accordingly, we encourage each
    prospective unitholder to consult, and depend on, his own tax
    advisor in analyzing the federal, state, local and foreign tax
    consequences particular to him of the ownership or disposition
    of common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No ruling has been or will be requested from the IRS regarding
    any matter affecting us or prospective unitholders. Instead, we
    will rely on opinions of Latham&#160;&#038; Watkins LLP. Unlike
    a ruling, an opinion of counsel represents only that
    counsel&#146;s best legal judgment and does not bind the IRS or
    the courts. Accordingly, the opinions and statements made herein
    may not be sustained by a court if contested by the IRS. Any
    contest of this sort with the IRS may materially and adversely
    impact the market for the common units and the prices at which
    common units trade. In addition, the costs of any contest with
    the IRS, principally legal, accounting and related fees, will
    result in a reduction in cash available for distribution to our
    unitholders and our general partner and thus will be borne
    indirectly by our unitholders and our general partner.
    Furthermore, the tax treatment of us, or of an investment in us,
    may be significantly modified by future legislative or
    administrative changes or court decisions. Any modifications may
    or may not be retroactively applied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All statements as to matters of federal income tax law and legal
    conclusions with respect thereto, but not as to factual matters,
    contained in this section, unless otherwise noted, are the
    opinion of Latham&#160;&#038; Watkins LLP and are based on the
    accuracy of the representations made by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the reasons described below, Latham&#160;&#038; Watkins LLP
    has not rendered an opinion with respect to the following
    specific federal income tax issues: (i)&#160;the treatment of a
    unitholder whose common units are loaned to a short seller to
    cover a short sale of common units (please read
    &#147;&#151;&#160;Tax Consequences of Unit Ownership&#160;&#151;
    Treatment of Short Sales&#148;); (ii)&#160;whether our monthly
    convention for allocating taxable income and losses is permitted
    by existing Treasury Regulations (please read
    &#147;&#151;&#160;Disposition of Common Units&#160;&#151;
    Allocations Between Transferors and Transferees&#148;); and
    (iii)&#160;whether our method for depreciating Section&#160;743
    adjustments is sustainable in certain cases (please read
    &#147;&#151;&#160;Tax Consequences of Unit Ownership&#160;&#151;
    Section&#160;754 Election&#148;).
</DIV>

<A name='233'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Partnership
    Status</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A partnership is not a taxable entity and incurs no federal
    income tax liability. Instead, each partner of a partnership is
    required to take into account his share of items of income,
    gain, loss and deduction of the partnership in computing his
    federal income tax liability, regardless of whether cash
    distributions are made to him by the partnership. Distributions
    by a partnership to a partner are generally not taxable to the
    partnership or the partner unless the amount of cash distributed
    to him is in excess of the partner&#146;s adjusted basis in his
    partnership interest.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    171
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;7704 of the Internal Revenue Code provides that
    publicly traded partnerships will, as a general rule, be taxed
    as corporations. However, an exception, referred to as the
    &#147;Qualifying Income Exception,&#148; exists with respect to
    publicly traded partnerships of which 90% or more of the gross
    income for every taxable year consists of &#147;qualifying
    income.&#148; Qualifying income includes income and gains
    derived from the mining, production, transportation, storage and
    marketing of coal and certain other natural resources. Other
    types of qualifying income include interest (other than from a
    financial business), dividends, gains from the sale of real
    property and gains from the sale or other disposition of capital
    assets held for the production of income that otherwise
    constitutes qualifying income. We estimate that less
    than&#160;&#160;&#160;&#160;&#160;% of our current gross income
    is not qualifying income; however, this estimate could change
    from time to time. Based upon and subject to this estimate, the
    factual representations made by us and our general partner and a
    review of the applicable legal authorities, Latham&#160;&#038;
    Watkins LLP is of the opinion that at least 90% of our current
    gross income constitutes qualifying income. The portion of our
    income that is qualifying income may change from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No ruling has been or will be sought from the IRS and the IRS
    has made no determination as to our status or the status of our
    operating subsidiaries for federal income tax purposes or
    whether our operations generate &#147;qualifying income&#148;
    under Section&#160;7704 of the Internal Revenue Code. Instead,
    we will rely on the opinion of Latham&#160;&#038; Watkins LLP on
    such matters. It is the opinion of Latham&#160;&#038; Watkins
    LLP that, based upon the Internal Revenue Code, its regulations,
    published revenue rulings and court decisions and the
    representations described below, we will be classified as a
    partnership and our operating subsidiaries (other than Harrison
    Resources) will be disregarded as an entity separate from us for
    federal income tax purposes. Harrison Resources will be treated
    as a partnership for federal income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In rendering its opinion, Latham&#160;&#038; Watkins LLP has
    relied on factual representations made by us and our general
    partner. The representations made by us and our general partner
    upon which Latham&#160;&#038; Watkins LLP has relied are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Neither we nor the operating subsidiaries has elected or will
    elect to be treated as a corporation;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    For each taxable year, more than 90% of our gross income has
    been and will be income of the type that Latham&#160;&#038;
    Watkins LLP has opined or will opine is &#147;qualifying
    income&#148; within the meaning of Section&#160;7704(d) of the
    Internal Revenue Code;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that these representations have been true in the past
    and expect that these representations will continue to be true
    in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we fail to meet the Qualifying Income Exception, other than a
    failure that is determined by the IRS to be inadvertent and that
    is cured within a reasonable time after discovery (in which case
    the IRS may also require us to make adjustments with respect to
    our unitholders or pay other amounts), we will be treated as if
    we had transferred all of our assets, subject to liabilities, to
    a newly formed corporation, on the first day of the year in
    which we fail to meet the Qualifying Income Exception, in return
    for stock in that corporation, and then distributed that stock
    to the unitholders in liquidation of their interests in us. This
    deemed contribution and liquidation should be tax-free to
    unitholders and us so long as we, at that time, do not have
    liabilities in excess of the tax basis of our assets.
    Thereafter, we would be treated as a corporation for federal
    income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we were taxed as a corporation in any taxable year, either as
    a result of a failure to meet the Qualifying Income Exception or
    otherwise, our items of income, gain, loss and deduction would
    be reflected only on our tax return rather than being passed
    through to our unitholders, and our net income would be taxed to
    us at corporate rates. In addition, any distribution made to a
    unitholder would be treated as taxable dividend income, to the
    extent of our current and accumulated earnings and profits, or,
    in the absence of earnings and profits, a nontaxable return of
    capital, to the extent of the unitholder&#146;s tax basis in his
    common units, or taxable capital gain, after the
    unitholder&#146;s tax basis in his common units is reduced to
    zero. Accordingly, taxation as a corporation would result in a
    material reduction in a unitholder&#146;s cash flow and
    after-tax return and thus would likely result in a substantial
    reduction of the value of the units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The discussion below is based on Latham&#160;&#038; Watkins
    LLP&#146;s opinion that we will be classified as a partnership
    for federal income tax purposes.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    172
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='234'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limited
    Partner Status</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unitholders who have become limited partners of Oxford Resource
    Partners, LP will be treated as partners of Oxford Resource
    Partners, LP for federal income tax purposes. Also, unitholders
    whose common units are held in street name or by a nominee and
    who have the right to direct the nominee in the exercise of all
    substantive rights attendant to the ownership of their common
    units will be treated as partners of Oxford Resource Partners,
    LP for federal income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A beneficial owner of common units whose units have been
    transferred to a short seller to complete a short sale would
    appear to lose his status as a partner with respect to those
    units for federal income tax purposes. Please read
    &#147;&#151;&#160;Tax Consequences of Unit Ownership&#160;&#151;
    Treatment of Short Sales.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Income, gain, deductions or losses would not appear to be
    reportable by a unitholder who is not a partner for federal
    income tax purposes, and any cash distributions received by a
    unitholder who is not a partner for federal income tax purposes
    would therefore appear to be fully taxable as ordinary income.
    These holders are urged to consult their own tax advisors with
    respect to their tax consequences of holding common units in
    Oxford Resource Partners, LP. The references to
    &#147;unitholders&#148; in the discussion that follows are to
    persons who are treated as partners in Oxford Resource Partners,
    LP for federal income tax purposes.
</DIV>

<A name='235'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Consequences of Unit Ownership</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Flow-Through of Taxable Income.</I>&#160;&#160;We will not
    pay any federal income tax. Instead, each unitholder will be
    required to report on his income tax return his share of our
    income, gains, losses and deductions without regard to whether
    we make cash distributions to him. Consequently, we may allocate
    income to a unitholder even if he has not received a cash
    distribution. Each unitholder will be required to include in
    income his allocable share of our income, gains, losses and
    deductions for our taxable year ending with or within his
    taxable year. Our taxable year ends on December&#160;31.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Treatment of Distributions.</I>&#160;&#160;Distributions by
    us to a unitholder generally will not be taxable to the
    unitholder for federal income tax purposes, except to the extent
    the amount of any such cash distribution exceeds his tax basis
    in his common units immediately before the distribution. Our
    cash distributions in excess of a unitholder&#146;s tax basis
    generally will be considered to be gain from the sale or
    exchange of the common units, taxable in accordance with the
    rules described under &#147;&#151;&#160;Disposition of Common
    Units&#148; below. Any reduction in a unitholder&#146;s share of
    our liabilities for which no partner, including the general
    partner, bears the economic risk of loss, known as
    &#147;nonrecourse liabilities,&#148; will be treated as a
    distribution by us of cash to that unitholder. To the extent our
    distributions cause a unitholder&#146;s &#147;at-risk&#148;
    amount to be less than zero at the end of any taxable year, he
    must recapture any losses deducted in previous years. Please
    read &#147;&#151;&#160;Limitations on Deductibility of
    Losses.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A decrease in a unitholder&#146;s percentage interest in us
    because of our issuance of additional common units will decrease
    his share of our nonrecourse liabilities, and thus will result
    in a corresponding deemed distribution of cash. This deemed
    distribution may constitute a non-pro rata distribution. A
    non-pro rata distribution of money or property may result in
    ordinary income to a unitholder, regardless of his tax basis in
    his common units, if the distribution reduces the
    unitholder&#146;s share of our &#147;unrealized
    receivables,&#148; including depreciation recapture, depletion
    recapture
    <FONT style="white-space: nowrap">and/or</FONT>
    substantially appreciated &#147;inventory items,&#148; each as
    defined in the Internal Revenue Code, and collectively,
    &#147;Section&#160;751 Assets.&#148; To that extent, the
    unitholder will be treated as having been distributed his
    proportionate share of the Section&#160;751 Assets and then
    having exchanged those assets with us in return for the non-pro
    rata portion of the actual distribution made to him. This latter
    deemed exchange will generally result in the unitholder&#146;s
    realization of ordinary income, which will equal the excess of
    (i)&#160;the non-pro rata portion of that distribution over
    (ii)&#160;the unitholder&#146;s tax basis (generally zero) for
    the share of Section&#160;751 Assets deemed relinquished in the
    exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Ratio of Taxable Income to Distributions.</I>&#160;&#160;We
    estimate that a purchaser of common units in this offering who
    owns those common units from the date of closing of this
    offering through the record date for distributions for the
    period ending December&#160;31, 2013, will be allocated, on a
    cumulative basis, an amount of federal taxable income for that
    period that will be&#160;&#160;&#160;&#160;&#160;% or less of
    the cash distributed with respect to that
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    173
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    period. Thereafter, we anticipate that the ratio of allocable
    taxable income to cash distributions to the unitholders will
    increase. These estimates are based upon the assumption that
    gross income from operations will approximate the amount
    required to make the minimum quarterly distribution on all units
    and other assumptions with respect to capital expenditures, cash
    flow, net working capital and anticipated cash distributions.
    These estimates and assumptions are subject to, among other
    things, numerous business, economic, regulatory, legislative,
    competitive and political uncertainties beyond our control.
    Further, the estimates are based on current tax law and tax
    reporting positions that we will adopt and with which the IRS
    could disagree. Accordingly, we cannot assure you that these
    estimates will prove to be correct. The actual percentage of
    distributions that will constitute taxable income could be
    higher or lower than expected, and any differences could be
    material and could materially affect the value of the common
    units. For example, the ratio of allocable taxable income to
    cash distributions to a purchaser of common units in this
    offering will be greater, and perhaps substantially greater,
    than our estimate with respect to the period described above if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    gross income from operations exceeds the amount required to make
    minimum quarterly distributions on all units, yet we only
    distribute the minimum quarterly distributions on all
    units;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    we make a future offering of common units and use the proceeds
    of the offering in a manner that does not produce substantial
    additional deductions during the period described above, such as
    to repay indebtedness outstanding at the time of this offering
    or to acquire property that is not eligible for depreciation or
    amortization for federal income tax purposes or that is
    depreciable or amortizable at a rate significantly slower than
    the rate applicable to our assets at the time of this offering.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Basis of Common Units.</I>&#160;&#160;A unitholder&#146;s
    initial tax basis for his common units will be the amount he
    paid for the common units plus his share of our nonrecourse
    liabilities. That basis will be increased by his share of our
    income and by any increases in his share of our nonrecourse
    liabilities. That basis will be decreased, but not below zero,
    by distributions from us, by the unitholder&#146;s share of our
    losses, by any decreases in his share of our nonrecourse
    liabilities and by his share of our expenditures that are not
    deductible in computing taxable income and are not required to
    be capitalized. A unitholder will have no share of our debt that
    is recourse to our general partner, but will have a share,
    generally based on his share of profits, of our nonrecourse
    liabilities. Please read &#147;&#151;&#160;Disposition of Common
    Units&#160;&#151; Recognition of Gain or Loss.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Limitations on Deductibility of Losses.</I>&#160;&#160;The
    deduction by a unitholder of his share of our losses will be
    limited to the tax basis in his units and, in the case of an
    individual unitholder, estate, trust, or corporate unitholder
    (if more than 50% of the value of the corporate
    unitholder&#146;s stock is owned directly or indirectly by or
    for five or fewer individuals or some tax-exempt organizations)
    to the amount for which the unitholder is considered to be
    &#147;at risk&#148; with respect to our activities, if that is
    less than his tax basis. A common unitholder subject to these
    limitations must recapture losses deducted in previous years to
    the extent that distributions cause his at-risk amount to be
    less than zero at the end of any taxable year. Losses disallowed
    to a unitholder or recaptured as a result of these limitations
    will carry forward and will be allowable as a deduction to the
    extent that his at-risk amount is subsequently increased,
    provided such losses do not exceed such common unitholders&#146;
    tax basis in his common units. Upon the taxable disposition of a
    unit, any gain recognized by a unitholder can be offset by
    losses that were previously suspended by the at-risk limitation
    but may not be offset by losses suspended by the basis
    limitation. Any loss previously suspended by the at-risk
    limitation in excess of that gain would no longer be utilizable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, a unitholder will be at risk to the extent of the
    tax basis of his units, excluding any portion of that basis
    attributable to his share of our nonrecourse liabilities,
    reduced by (i)&#160;any portion of that basis representing
    amounts otherwise protected against loss because of a guarantee,
    stop loss agreement or other similar arrangement and
    (ii)&#160;any amount of money he borrows to acquire or hold his
    units, if the lender of those borrowed funds owns an interest in
    us, is related to the unitholder or can look only to the units
    for repayment. A unitholder&#146;s at-risk amount will increase
    or decrease as the tax basis of the unitholder&#146;s units
    increases or decreases, other than tax basis increases or
    decreases attributable to increases or decreases in his share of
    our nonrecourse liabilities.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    174
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the basis and at-risk limitations on the
    deductibility of losses, the passive loss limitations generally
    provide that individuals, estates, trusts and some closely-held
    corporations and personal service corporations can deduct losses
    from passive activities, which are generally trade or business
    activities in which the taxpayer does not materially
    participate, only to the extent of the taxpayer&#146;s income
    from those passive activities. The passive loss limitations are
    applied separately with respect to each publicly traded
    partnership. Consequently, any passive losses we generate will
    only be available to offset our passive income generated in the
    future and will not be available to offset income from other
    passive activities or investments, including our investments or
    a unitholder&#146;s investments in other publicly traded
    partnerships, or salary or active business income. Passive
    losses that are not deductible because they exceed a
    unitholder&#146;s share of income we generate may be deducted in
    full when he disposes of his entire investment in us in a fully
    taxable transaction with an unrelated party. The passive loss
    limitations are applied after other applicable limitations on
    deductions, including the at-risk rules and the basis limitation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A unitholder&#146;s share of our net income may be offset by any
    of our suspended passive losses, but it may not be offset by any
    other current or carryover losses from other passive activities,
    including those attributable to other publicly traded
    partnerships.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Limitations on Interest Deductions.</I>&#160;&#160;The
    deductibility of a non-corporate taxpayer&#146;s
    &#147;investment interest expense&#148; is generally limited to
    the amount of that taxpayer&#146;s &#147;net investment
    income.&#148; Investment interest expense includes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    interest on indebtedness properly allocable to property held for
    investment;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our interest expense attributed to portfolio income;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the portion of interest expense incurred to purchase or carry an
    interest in a passive activity to the extent attributable to
    portfolio income.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The computation of a unitholder&#146;s investment interest
    expense will take into account interest on any margin account
    borrowing or other loan incurred to purchase or carry a unit.
    Net investment income includes gross income from property held
    for investment and amounts treated as portfolio income under the
    passive loss rules, less deductible expenses, other than
    interest, directly connected with the production of investment
    income, but generally does not include gains attributable to the
    disposition of property held for investment or qualified
    dividend income. The IRS has indicated that the net passive
    income earned by a publicly traded partnership will be treated
    as investment income to its unitholders. In addition, the
    unitholder&#146;s share of our portfolio income will be treated
    as investment income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Entity-Level&#160;Collections.</I>&#160;&#160;If we are
    required or elect under applicable law to pay any federal,
    state, local or foreign income tax on behalf of any unitholder
    or our general partner or any former unitholder, we are
    authorized to pay those taxes from our funds. That payment, if
    made, will be treated as a distribution of cash to the
    unitholder on whose behalf the payment was made. If the payment
    is made on behalf of a person whose identity cannot be
    determined, we are authorized to treat the payment as a
    distribution to all current unitholders. We are authorized to
    amend our partnership agreement in the manner necessary to
    maintain uniformity of intrinsic tax characteristics of units
    and to adjust later distributions, so that after giving effect
    to these distributions, the priority and characterization of
    distributions otherwise applicable under our partnership
    agreement is maintained as nearly as is practicable. Payments by
    us as described above could give rise to an overpayment of tax
    on behalf of an individual unitholder in which event the
    unitholder would be required to file a claim in order to obtain
    a credit or refund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Allocation of Income, Gain, Loss and
    Deduction.</I>&#160;&#160;In general, if we have a net profit,
    our items of income, gain, loss and deduction will be allocated
    among our general partner and the unitholders in accordance with
    their percentage interests in us. At any time that distributions
    are made to the common units in excess of distributions to the
    subordinated units, or incentive distributions are made to our
    general partner, gross income will be allocated to the
    recipients to the extent of these distributions. If we have a
    net loss, that loss will be allocated first to our general
    partner and the unitholders in accordance with their percentage
    interests in us to the extent of their positive capital accounts
    and, second, to our general partner.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    175
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Specified items of our income, gain, loss and deduction will be
    allocated to account for (i)&#160;any difference between the tax
    basis and fair market value of our assets at the time of an
    offering and (ii)&#160;any difference between the tax basis and
    fair market value of any property contributed to us by the
    general partner and its affiliates that exists at the time of
    such contribution, together, referred to in this discussion as
    the &#147;Contributed Property.&#148; The effect of these
    allocations, referred to as Section&#160;704(c) Allocations, to
    a unitholder purchasing common units from us in this offering
    will be essentially the same as if the tax bases of our assets
    were equal to their fair market values at the time of this
    offering. In the event we issue additional common units or
    engage in certain other transactions in the future,
    &#147;reverse Section&#160;704(c) Allocations,&#148; similar to
    the Section&#160;704(c) Allocations described above, will be
    made to the general partner and all of our unitholders
    immediately prior to such issuance or other transactions to
    account for the difference between the &#147;book&#148; basis
    for purposes of maintaining capital accounts and the fair market
    value of all property held by us at the time of such issuance or
    future transaction. In addition, items of recapture income will
    be allocated to the extent possible to the unitholder who was
    allocated the deduction giving rise to the treatment of that
    gain as recapture income in order to minimize the recognition of
    ordinary income by some unitholders. Finally, although we do not
    expect that our operations will result in the creation of
    negative capital accounts, if negative capital accounts
    nevertheless result, items of our income and gain will be
    allocated in an amount and manner sufficient to eliminate the
    negative balance as quickly as possible.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An allocation of items of our income, gain, loss or deduction,
    other than an allocation required by the Internal Revenue Code
    to eliminate the difference between a partner&#146;s
    &#147;book&#148; capital account, credited with the fair market
    value of Contributed Property, and &#147;tax&#148; capital
    account, credited with the tax basis of Contributed Property,
    referred to in this discussion as the &#147;Book-Tax
    Disparity,&#148; will generally be given effect for federal
    income tax purposes in determining a partner&#146;s share of an
    item of income, gain, loss or deduction only if the allocation
    has substantial economic effect. In any other case, a
    partner&#146;s share of an item will be determined on the basis
    of his interest in us, which will be determined by taking into
    account all the facts and circumstances, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    his relative contributions to us;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the interests of all the partners in profits and losses;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the interest of all the partners in cash flow;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the rights of all the partners to distributions of capital upon
    liquidation.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Latham&#160;&#038; Watkins LLP is of the opinion that, with the
    exception of the issues described in
    &#147;&#151;&#160;Section&#160;754 Election&#148; and
    &#147;&#151;&#160;Disposition of Common Units&#160;&#151;
    Allocations Between Transferors and Transferees,&#148;
    allocations under our partnership agreement will be given effect
    for federal income tax purposes in determining a partner&#146;s
    share of an item of income, gain, loss or deduction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Treatment of Short Sales.</I>&#160;&#160;A unitholder whose
    units are loaned to a &#147;short seller&#148; to cover a short
    sale of units may be considered as having disposed of those
    units. If so, he would no longer be treated for tax purposes as
    a partner with respect to those units during the period of the
    loan and may recognize gain or loss from the disposition. As a
    result, during this period:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    any of our income, gain, loss or deduction with respect to those
    units would not be reportable by the unitholder;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    any cash distributions received by the unitholder as to those
    units would be fully taxable;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    all of these distributions would appear to be ordinary income.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Latham&#160;&#038; Watkins LLP has not rendered an opinion
    regarding the tax treatment of a unitholder whose common units
    are loaned to a short seller to cover a short sale of common
    units; therefore, unitholders desiring to assure their status as
    partners and avoid the risk of gain recognition from a loan to a
    short seller are urged to modify any applicable brokerage
    account agreements to prohibit their brokers from borrowing and
    loaning their units. The IRS has previously announced that it is
    studying issues relating to the tax
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    176
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    treatment of short sales of partnership interests. Please also
    read &#147;&#151;&#160;Disposition of Common Units&#160;&#151;
    Recognition of Gain or Loss.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Alternative Minimum Tax.</I>&#160;&#160;Each unitholder will
    be required to take into account his distributive share of any
    items of our income, gain, loss or deduction for purposes of the
    alternative minimum tax. The current minimum tax rate for
    noncorporate taxpayers is 26% on the first $175,000 of
    alternative minimum taxable income in excess of the exemption
    amount and 28% on any additional alternative minimum taxable
    income. Prospective unitholders are urged to consult with their
    tax advisors as to the impact of an investment in units on their
    liability for the alternative minimum tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Tax Rates.</I>&#160;&#160;Under current law, the highest
    marginal U.S.&#160;federal income tax rate applicable to
    ordinary income of individuals is 35% and the highest marginal
    U.S.&#160;federal income tax rate applicable to long-term
    capital gains (generally, capital gains on certain assets held
    for more than twelve months) of individuals is 15%. However,
    absent new legislation extending the current rates, beginning
    January&#160;1, 2011, the highest marginal U.S.&#160;federal
    income tax rate applicable to ordinary income and long-term
    capital gains of individuals will increase to 39.6% and 20%,
    respectively. Moreover, these rates are subject to change by new
    legislation at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Section&#160;754 Election.</I>&#160;&#160;We will make the
    election permitted by Section&#160;754 of the Internal Revenue
    Code. That election is irrevocable without the consent of the
    IRS. The election will generally permit us to adjust a common
    unit purchaser&#146;s tax basis in our assets (&#147;inside
    basis&#148;) under Section&#160;743(b) of the Internal Revenue
    Code to reflect his purchase price. This election does not apply
    with respect to a person who purchases common units directly
    from us. The Section&#160;743(b) adjustment belongs to the
    purchaser and not to other unitholders. For purposes of this
    discussion, the inside basis in our assets with respect to a
    unitholder will be considered to have two components:
    (i)&#160;his share of our tax basis in our assets (&#147;common
    basis&#148;) and (ii)&#160;his Section&#160;743(b) adjustment to
    that basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will adopt the remedial allocation method as to all our
    properties. Where the remedial allocation method is adopted, the
    Treasury Regulations under Section&#160;743 of the Internal
    Revenue Code require a portion of the Section&#160;743(b)
    adjustment that is attributable to recovery property that is
    subject to depreciation under Section&#160;168 of the Internal
    Revenue Code and whose book basis is in excess of its tax basis
    to be depreciated over the remaining cost recovery period for
    the property&#146;s unamortized Book-Tax Disparity. Under
    Treasury
    <FONT style="white-space: nowrap">Regulation&#160;Section&#160;1.167(c)-1(a)(6),</FONT>
    a Section&#160;743(b) adjustment attributable to property
    subject to depreciation under Section&#160;167 of the Internal
    Revenue Code, rather than cost recovery deductions under
    Section&#160;168, is generally required to be depreciated using
    either the straight-line method or the 150% declining balance
    method. Under our partnership agreement, our general partner is
    authorized to take a position to preserve the uniformity of
    units even if that position is not consistent with these and any
    other Treasury Regulations. Please read
    &#147;&#151;&#160;Uniformity of Units.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although Latham&#160;&#038; Watkins LLP is unable to opine as to
    the validity of this approach, we intend to depreciate the
    portion of a Section&#160;743(b) adjustment attributable to
    unrealized appreciation in the value of Contributed Property, to
    the extent of any unamortized Book-Tax Disparity, using a rate
    of depreciation or amortization derived from the depreciation or
    amortization method and useful life applied to the
    property&#146;s unamortized Book-Tax Disparity, or treat that
    portion as
    <FONT style="white-space: nowrap">non-amortizable</FONT>
    to the extent attributable to property which is not amortizable.
    This method is consistent with the methods employed by other
    publicly traded partnerships but is arguably inconsistent with
    Treasury Regulation
    <FONT style="white-space: nowrap">Section&#160;1.167(c)-1(a)(6),</FONT>
    which is not expected to directly apply to a material portion of
    our assets. To the extent this Section&#160;743(b) adjustment is
    attributable to appreciation in value in excess of the
    unamortized Book-Tax Disparity, we will apply the rules
    described in the Treasury Regulations and legislative history.
    If we determine that this position cannot reasonably be taken,
    we may take a depreciation or amortization position under which
    all purchasers acquiring units in the same month would receive
    depreciation or amortization, whether attributable to common
    basis or a Section&#160;743(b) adjustment, based upon the same
    applicable rate as if they had purchased a direct interest in
    our assets. This kind of aggregate approach may result in lower
    annual depreciation or amortization deductions than would
    otherwise be allowable to some unitholders. Please read
    &#147;&#151;&#160;Uniformity of Units.&#148; A unitholder&#146;s
    tax basis for his common units is reduced by his share of our
    deductions (whether or not such deductions were
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    177
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    claimed on an individual&#146;s income tax return) so that any
    position we take that understates deductions will overstate the
    common unitholder&#146;s basis in his common units, which may
    cause the unitholder to understate gain or overstate loss on any
    sale of such units. Please read &#147;&#151;&#160;Disposition of
    Common Units&#160;&#151; Recognition of Gain or Loss.&#148; The
    IRS may challenge our position with respect to depreciating or
    amortizing the Section&#160;743(b) adjustment we take to
    preserve the uniformity of the units. If such a challenge were
    sustained, the gain from the sale of units might be increased
    without the benefit of additional deductions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Section&#160;754 election is advantageous if the
    transferee&#146;s tax basis in his units is higher than the
    units&#146; share of the aggregate tax basis of our assets
    immediately prior to the transfer. In that case, as a result of
    the election, the transferee would have, among other items, a
    greater amount of depreciation and depletion deductions and his
    share of any gain or loss on a sale of our assets would be less.
    Conversely, a Section&#160;754 election is disadvantageous if
    the transferee&#146;s tax basis in his units is lower than those
    units&#146; share of the aggregate tax basis of our assets
    immediately prior to the transfer. Thus, the fair market value
    of the units may be affected either favorably or unfavorably by
    the election. A basis adjustment is required regardless of
    whether a Section&#160;754 election is made in the case of a
    transfer of an interest in us if we have a substantial
    built&#160;&#151; in loss immediately after the transfer, or if
    we distribute property and have a substantial basis reduction.
    Generally a built&#160;&#151; in loss or a basis reduction is
    substantial if it exceeds $250,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The calculations involved in the Section&#160;754 election are
    complex and will be made on the basis of assumptions as to the
    value of our assets and other matters. For example, the
    allocation of the Section&#160;743(b) adjustment among our
    assets must be made in accordance with the Internal Revenue
    Code. The IRS could seek to reallocate some or all of any
    Section&#160;743(b) adjustment allocated by us to our tangible
    assets to goodwill instead. Goodwill, as an intangible asset, is
    generally nonamortizable or amortizable over a longer period of
    time or under a less accelerated method than our tangible
    assets. We cannot assure you that the determinations we make
    will not be successfully challenged by the IRS and that the
    deductions resulting from them will not be reduced or disallowed
    altogether. Should the IRS require a different basis adjustment
    to be made, and should, in our opinion, the expense of
    compliance exceed the benefit of the election, we may seek
    permission from the IRS to revoke our Section&#160;754 election.
    If permission is granted, a subsequent purchaser of units may be
    allocated more income than he would have been allocated had the
    election not been revoked.
</DIV>

<A name='236'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Treatment of Operations</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Accounting Method and Taxable Year.</I>&#160;&#160;We use the
    year ending December 31 as our taxable year and the accrual
    method of accounting for federal income tax purposes. Each
    unitholder will be required to include in income his share of
    our income, gain, loss and deduction for our taxable year ending
    within or with his taxable year. In addition, a unitholder who
    has a taxable year ending on a date other than December 31 and
    who disposes of all of his units following the close of our
    taxable year but before the close of his taxable year must
    include his share of our income, gain, loss and deduction in
    income for his taxable year, with the result that he will be
    required to include in income for his taxable year his share of
    more than twelve months of our income, gain, loss and deduction.
    Please read &#147;&#151;&#160;Disposition of Common
    Units&#160;&#151; Allocations Between Transferors and
    Transferees.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Initial Tax Basis, Depreciation and
    Amortization.</I>&#160;&#160;The tax basis of our assets will be
    used for purposes of computing depreciation and cost recovery
    deductions and, ultimately, gain or loss on the disposition of
    these assets. The federal income tax burden associated with the
    difference between the fair market value of our assets and their
    tax basis immediately prior to (i)&#160;this offering will be
    borne by our general partner and its affiliates, and
    (ii)&#160;any other offering will be borne by our general
    partner and all of our unitholders as of that time. Please read
    &#147;&#151;&#160;Tax Consequences of Unit Ownership&#160;&#151;
    Allocation of Income, Gain, Loss and Deduction.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent allowable, we may elect to use the depreciation
    and cost recovery methods that will result in the largest
    deductions being taken in the early years after assets subject
    to these allowances are placed in service. Please read
    &#147;&#151;&#160;Uniformity of Units.&#148; Property we
    subsequently acquire or construct may be depreciated using
    accelerated methods permitted by the Internal Revenue Code.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    178
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we dispose of depreciable property by sale, foreclosure or
    otherwise, all or a portion of any gain, determined by reference
    to the amount of depreciation previously deducted and the nature
    of the property, may be subject to the recapture rules and taxed
    as ordinary income rather than capital gain. Similarly, a
    unitholder who has taken cost recovery or depreciation
    deductions with respect to property we own will likely be
    required to recapture some or all of those deductions as
    ordinary income upon a sale of his interest in us. Please read
    &#147;&#151;&#160;Tax Consequences of Unit Ownership&#160;&#151;
    Allocation of Income, Gain, Loss and Deduction&#148; and
    &#147;&#151;&#160;Disposition of Common Units&#160;&#151;
    Recognition of Gain or Loss.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The costs we incur in selling our units (called
    &#147;syndication expenses&#148;) must be capitalized and cannot
    be deducted currently, ratably or upon our termination. There
    are uncertainties regarding the classification of costs as
    organization expenses, which may be amortized by us, and as
    syndication expenses, which may not be amortized by us. The
    underwriting discounts and commissions we incur will be treated
    as syndication expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Valuation and Tax Basis of Our Properties.</I>&#160;&#160;The
    federal income tax consequences of the ownership and disposition
    of units will depend in part on our estimates of the relative
    fair market values, and the initial tax bases, of our assets.
    Although we may from time to time consult with professional
    appraisers regarding valuation matters, we will make many of the
    relative fair market value estimates ourselves. These estimates
    and determinations of basis are subject to challenge and will
    not be binding on the IRS or the courts. If the estimates of
    fair market value or basis are later found to be incorrect, the
    character and amount of items of income, gain, loss or
    deductions previously reported by unitholders might change, and
    unitholders might be required to adjust their tax liability for
    prior years and incur interest and penalties with respect to
    those adjustments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coal Income.</I>&#160;&#160;Section&#160;631 of the Internal
    Revenue Code provides special rules by which gains or losses on
    the sale of coal may be treated, in whole or in part, as gains
    or losses from the sale of property used in a trade or business
    under Section&#160;1231 of the Internal Revenue Code.
    Specifically, Section&#160;631(c) provides that if the owner of
    coal held for more than one year disposes of that coal under a
    contract by virtue of which the owner retains an economic
    interest in the coal, the gain or loss realized will be treated
    under Section&#160;1231 of the Internal Revenue Code as gain or
    loss from property used in a trade or business.
    Section&#160;1231 gains and losses may be treated as capital
    gains and losses. Please read &#147;&#151;&#160;Sales of Coal
    Reserves.&#148; In computing such gain or loss, the amount
    realized is reduced by the adjusted depletion basis in the coal,
    determined as described in &#147;&#151;&#160;Coal
    Depletion.&#148; For purposes of Section&#160;631(c), the coal
    generally is deemed to be disposed of on the day on which the
    coal is mined. Further, Treasury regulations promulgated under
    Section&#160;631 provide that advance royalty payments may also
    be treated as proceeds from sales of coal to which
    Section&#160;631 applies and, therefore, such payment may be
    treated as capital gain under Section&#160;1231. However, if the
    right to mine the related coal expires or terminates under the
    contract that provides for the payment of advance royalty
    payments or such right is abandoned before the coal has been
    mined, we may, pursuant to the Treasury regulations, file an
    amended return that reflects the payments attributable to
    unmined coal as ordinary income and not as received from the
    sale of coal under Section&#160;631.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our royalties from coal leases generally will be treated as
    proceeds from sales of coal to which Section&#160;631 applies.
    Accordingly, the difference between the royalties paid to us by
    the lessees and the adjusted depletion basis in the extracted
    coal generally will be treated as gain from the sale of property
    used in a trade or business, which may be treated as capital
    gain under Section&#160;1231. Please read
    &#147;&#151;&#160;Sales of Coal Reserves.&#148; Our royalties
    that do not qualify under Section&#160;631(c) generally will be
    taxable as ordinary income in the year of sale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Coal Depletion.</I>&#160;&#160;In general, we are entitled to
    depletion deductions with respect to coal mined from the
    underlying mineral property. We generally are entitled to the
    greater of cost depletion limited to the basis of the property
    or percentage depletion. The percentage depletion rate for coal
    is 10%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Depletion deductions we claim generally will reduce the tax
    basis of the underlying mineral property. Depletion deductions
    can, however, exceed the total tax basis of the mineral
    property. The excess of our percentage depletion deductions over
    the adjusted tax basis of the property at the end of the taxable
    year is subject to tax preference treatment in computing the
    alternative minimum tax. Please read &#147;&#151;&#160;Tax
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    179
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Consequences of Unit Ownership&#160;&#151; Alternative Minimum
    Tax.&#148; Upon the disposition of the mineral property, a
    portion of the gain, if any, equal to the lesser of the
    deductions for depletion which reduce the adjusted tax basis of
    the mineral property plus deductible development and mining
    exploration expenses (discussed below), or the amount of gain
    recognized upon the disposition, will be treated as ordinary
    income to us. In addition, a corporate unitholder&#146;s
    allocable share of the amount allowable as a percentage
    depletion deduction for any property will be reduced by 20% of
    the excess, if any, of that partner&#146;s allocable share of
    the amount of the percentage depletion deductions for the
    taxable year over the adjusted tax basis of the mineral property
    as of the close of the taxable year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Mining Exploration and Development
    Expenditures.</I>&#160;&#160;We will elect to currently deduct
    mining exploration expenditures that we pay or incur to
    determine the existence, location, extent or quality of coal
    deposits prior to the time the existence of coal in commercially
    marketable quantities has been disclosed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amounts we deduct for mine exploration expenditures must be
    recaptured and included in our taxable income at the time a mine
    reaches the production stage, unless we elect to reduce future
    depletion deductions by the amount of the recapture. A mine
    reaches the producing stage when the major part of the coal
    production is obtained from working mines other than those
    opened for the purpose of development or the principal activity
    of the mine is the production of developed coal rather than the
    development of additional coal for mining. This recapture is
    accomplished through the disallowance of both cost and
    percentage depletion deductions on the particular mine reaching
    the producing stage. This disallowance of depletion deductions
    continues until the amount of adjusted exploration expenditures
    with respect to the mine have been fully recaptured. This
    recapture is not applied to the full amount of the previously
    deducted exploration expenditures. Instead, these expenditures
    are reduced by the amount of percentage depletion, if any, that
    was lost as a result of deducting these exploration expenditures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We generally elect to defer mine development expenses,
    consisting of expenditures incurred in making coal accessible
    for extraction, after the exploration process has disclosed the
    existence of coal in commercially marketable quantities, and
    deduct them on a ratable basis as the coal benefited by the
    expenses is sold.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mine exploration and development expenditures are subject to
    recapture as ordinary income to the extent of any gain upon a
    sale or other disposition of our property or of your common
    units. See &#147;&#151;&#160;Disposition of Common Units.&#148;
    Corporate unitholders are subject to an additional rule that
    requires them to capitalize a portion of their otherwise
    deductible mine exploration and development expenditures.
    Corporate unitholders, other than some S&#160;corporations, are
    required to reduce their otherwise deductible exploration
    expenditures by 30%. These capitalized mine exploration and
    development expenditures must be amortized over a
    <FONT style="white-space: nowrap">60-month</FONT>
    period, beginning in the month paid or incurred, using a
    straight-line method and may not be treated as part of the basis
    of the property for purposes of computing depletion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When computing the alternative minimum tax, mine exploration and
    development expenditures are capitalized and deducted over a ten
    year period. Unitholders may avoid this alternative minimum tax
    adjustment of their mine exploration and development
    expenditures by electing to capitalize all or part of the
    expenditures and deducting them over ten years for regular
    income tax purposes. You may select the specific amount of these
    expenditures for which you wish to make this election.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sales of Coal Reserves.</I>&#160;&#160;If any coal reserves
    are sold or otherwise disposed of in a taxable transaction, we
    will recognize gain or loss measured by the difference between
    the amount realized (including the amount of any indebtedness
    assumed by the purchaser upon such disposition or to which such
    property is subject) and the adjusted tax basis of the property
    sold. Generally, the character of any gain or loss recognized
    upon that disposition will depend upon whether our coal reserves
    or the mined coal sold are held by us:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    for sale to customers in the ordinary course of business (i.e.,
    we are a &#147;dealer&#148; with respect to that property),
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    for use in a trade or business within the meaning of
    Section&#160;1231 of the Internal Revenue Code,&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    as a capital asset within the meaning of Section&#160;1221 of
    the Internal Revenue Code.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    180
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In determining dealer status with respect to coal reserves and
    other types of real estate, the courts have identified a number
    of factors for distinguishing between a particular property held
    for sale in the ordinary course of business and one held for
    investment. Any determination must be based on all the facts and
    circumstances surrounding the particular property and sale in
    question.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to hold our coal reserves for use in a trade or
    business and achieving long-term capital appreciation. Although
    our general partner may consider strategic sales of coal
    reserves consistent with achieving long-term capital
    appreciation, our general partner does not anticipate frequent
    sales of coal reserves. Thus, the general partner does not
    believe we will be viewed as a dealer. In light of the factual
    nature of this question, however, there is no assurance that our
    purposes for holding our properties will not change and that our
    future activities will not cause us to be a &#147;dealer&#148;
    in coal reserves.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we are not a dealer with respect to our coal reserves and we
    have held the disposed property for more than a one-year period
    primarily for use in our trade or business, the character of any
    gain or loss realized from a disposition of the property will be
    determined under Section&#160;1231 of the Internal Revenue Code.
    If we have not held the property for more than one year at the
    time of the sale, gain or loss from the sale will be taxable as
    ordinary income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A unitholder&#146;s distributive share of any Section&#160;1231
    gain or loss generated by us will be aggregated with any other
    gains and losses realized by that unitholder from the
    disposition of property used in the trade or business, as
    defined in Section&#160;1231(b) of the Internal Revenue Code,
    and from the involuntary conversion of such properties and of
    capital assets held in connection with a trade or business or a
    transaction entered into for profit for the requisite holding
    period. If a net gain results, all such gains and losses will be
    long-term capital gains and losses; if a net loss results, all
    such gains and losses will be ordinary income and losses. Net
    Section&#160;1231 gains will be treated as ordinary income to
    the extent of prior net Section&#160;1231 losses of the taxpayer
    or predecessor taxpayer for the five most recent prior taxable
    years to the extent such losses have not previously been offset
    against Section&#160;1231 gains. Losses are deemed recaptured in
    the chronological order in which they arose.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we are not a dealer with respect to our coal reserves and
    that property is not used in a trade or business, the property
    will be a &#147;capital asset&#148; within the meaning of
    Section&#160;1221 of the Internal Revenue Code. Gain or loss
    recognized from the disposition of that property will be taxable
    as capital gain or loss, and the character of such capital gain
    or loss as long-term or short-term will be based upon our
    holding period of such property at the time of its sale. The
    requisite holding period for long-term capital gain is more than
    one year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon a disposition of coal reserves, a portion of the gain, if
    any, equal to the lesser of (1)&#160;the depletion deductions
    that reduced the tax basis of the disposed mineral property plus
    deductible development and mining exploration expenses or
    (2)&#160;the amount of gain recognized on the disposition, will
    be treated as ordinary income to us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Deduction for U.S.&#160;Production
    Activities.</I>&#160;&#160;Subject to the limitations on the
    deductibility of losses discussed above and the limitation
    discussed below, unitholders will be entitled to a deduction,
    herein referred to as the Section&#160;199 deduction, equal to a
    specified percentage of our qualified production activities
    income that is allocated to such unitholder. The percentage is
    currently 9% for qualified production activities income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Qualified production activities income is generally equal to
    gross receipts from domestic production activities reduced by
    cost of goods sold allocable to those receipts, other expenses
    directly associated with those receipts, and a share of other
    deductions, expenses and losses that are not directly allocable
    to those receipts or another class of income. The products
    produced must be manufactured, produced, grown or extracted in
    whole or in significant part by the taxpayer in the United
    States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a partnership, the Section&#160;199 deduction is determined
    at the partner level. To determine his Section&#160;199
    deduction, each unitholder will aggregate his share of the
    qualified production activities income allocated to him from us
    with the unitholder&#146;s qualified production activities
    income from other sources. Each unitholder must take into
    account his distributive share of the expenses allocated to him
    from our qualified production activities regardless of whether
    we otherwise have taxable income. However, our expenses that
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    181
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    otherwise would be taken into account for purposes of computing
    the Section&#160;199 deduction are only taken into account if
    and to the extent the unitholder&#146;s share of losses and
    deductions from all of our activities is not disallowed by the
    basis rules, the at-risk rules or the passive activity loss
    rules. Please read &#147;&#151;&#160;Tax Consequences of Unit
    Ownership&#160;&#151; Limitations on Deductibility of
    Losses.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount of a unitholder&#146;s Section&#160;199 deduction for
    each year is limited to 50% of the IRS
    <FONT style="white-space: nowrap">Form&#160;W-2</FONT>
    wages actually or deemed paid by the unitholder during the
    calendar year that are deducted in arriving at qualified
    production activities income. Each unitholder is treated as
    having been allocated IRS
    <FONT style="white-space: nowrap">Form&#160;W-2</FONT>
    wages from us equal to the unitholder&#146;s allocable share of
    our wages that are deducted in arriving at qualified production
    activities income for that taxable year. It is not anticipated
    that we or our subsidiaries will pay material wages that will be
    allocated to our unitholders, and thus a unitholder&#146;s
    ability to claim the Section&#160;199 deduction may be limited.
</DIV>

<A name='237'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Disposition
    of Common Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Recognition of Gain or Loss.</I>&#160;&#160;Gain or loss will
    be recognized on a sale of units equal to the difference between
    the amount realized and the unitholder&#146;s tax basis for the
    units sold. A unitholder&#146;s amount realized will be measured
    by the sum of the cash or the fair market value of other
    property received by him plus his share of our nonrecourse
    liabilities. Because the amount realized includes a
    unitholder&#146;s share of our nonrecourse liabilities, the gain
    recognized on the sale of units could result in a tax liability
    in excess of any cash received from the sale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior distributions from us that in the aggregate were in excess
    of cumulative net taxable income for a common unit and,
    therefore, decreased a unitholder&#146;s tax basis in that
    common unit will, in effect, become taxable income if the common
    unit is sold at a price greater than the unitholder&#146;s tax
    basis in that common unit, even if the price received is less
    than his original cost.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as noted below, gain or loss recognized by a unitholder,
    other than a &#147;dealer&#148; in units, on the sale or
    exchange of a unit will generally be taxable as capital gain or
    loss. Capital gain recognized by an individual on the sale of
    units held for more than twelve months will generally be taxed
    at a maximum U.S.&#160;federal income tax rate of 15% through
    December&#160;31, 2010 and 20% thereafter (absent new
    legislation extending or adjusting the current rate). However, a
    portion of this gain or loss, which will likely be substantial,
    will be separately computed and taxed as ordinary income or loss
    under Section&#160;751 of the Internal Revenue Code to the
    extent attributable to assets giving rise to depreciation
    recapture or other &#147;unrealized receivables&#148; or to
    &#147;inventory items&#148; we own. The term &#147;unrealized
    receivables&#148; includes potential recapture items, including
    depreciation and depletion recapture. Ordinary income
    attributable to unrealized receivables, inventory items and
    depreciation recapture may exceed net taxable gain realized upon
    the sale of a unit and may be recognized even if there is a net
    taxable loss realized on the sale of a unit. Thus, a unitholder
    may recognize both ordinary income and a capital loss upon a
    sale of units. Net capital losses may offset capital gains and
    no more than $3,000 of ordinary income, in the case of
    individuals, and may only be used to offset capital gains in the
    case of corporations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The IRS has ruled that a partner who acquires interests in a
    partnership in separate transactions must combine those
    interests and maintain a single adjusted tax basis for all those
    interests. Upon a sale or other disposition of less than all of
    those interests, a portion of that tax basis must be allocated
    to the interests sold using an &#147;equitable
    apportionment&#148; method, which generally means that the tax
    basis allocated to the interest sold equals an amount that bears
    the same relation to the partner&#146;s tax basis in his entire
    interest in the partnership as the value of the interest sold
    bears to the value of the partner&#146;s entire interest in the
    partnership. Treasury Regulations under Section&#160;1223 of the
    Internal Revenue Code allow a selling unitholder who can
    identify common units transferred with an ascertainable holding
    period to elect to use the actual holding period of the common
    units transferred. Thus, according to the ruling discussed
    above, a common unitholder will be unable to select high or low
    basis common units to sell as would be the case with corporate
    stock, but, according to the Treasury Regulations, he may
    designate specific common units sold for purposes of determining
    the holding period of units transferred. A unitholder electing
    to use the actual holding period of common units transferred
    must consistently use that identification method for all
    subsequent sales or
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    182
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    exchanges of common units. A unitholder considering the purchase
    of additional units or a sale of common units purchased in
    separate transactions is urged to consult his tax advisor as to
    the possible consequences of this ruling and application of the
    Treasury Regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Specific provisions of the Internal Revenue Code affect the
    taxation of some financial products and securities, including
    partnership interests, by treating a taxpayer as having sold an
    &#147;appreciated&#148; partnership interest, one in which gain
    would be recognized if it were sold, assigned or terminated at
    its fair market value, if the taxpayer or related persons
    enter(s) into:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a short sale;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    an offsetting notional principal contract;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a futures or forward contract with respect to the partnership
    interest or substantially identical property.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Moreover, if a taxpayer has previously entered into a short
    sale, an offsetting notional principal contract or a futures or
    forward contract with respect to the partnership interest, the
    taxpayer will be treated as having sold that position if the
    taxpayer or a related person then acquires the partnership
    interest or substantially identical property. The Secretary of
    the Treasury is also authorized to issue regulations that treat
    a taxpayer that enters into transactions or positions that have
    substantially the same effect as the preceding transactions as
    having constructively sold the financial position.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Allocations Between Transferors and
    Transferees.</I>&#160;&#160;In general, our taxable income and
    losses will be determined annually, will be prorated on a
    monthly basis and will be subsequently apportioned among the
    unitholders in proportion to the number of units owned by each
    of them as of the opening of the applicable exchange on the
    first business day of the month, which we refer to in this
    prospectus as the &#147;Allocation Date.&#148; However, gain or
    loss realized on a sale or other disposition of our assets other
    than in the ordinary course of business will be allocated among
    the unitholders on the Allocation Date in the month in which
    that gain or loss is recognized. As a result, a unitholder
    transferring units may be allocated income, gain, loss and
    deduction realized after the date of transfer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although simplifying conventions are contemplated by the
    Internal Revenue Code and most publicly traded partnerships use
    similar simplifying conventions, the use of this method may not
    be permitted under existing Treasury Regulations. Recently, the
    Department of the Treasury and the IRS issued proposed Treasury
    Regulations that provide a safe harbor pursuant to which a
    publicly traded partnership may use a similar monthly
    simplifying convention to allocate tax items among transferor
    and transferee unitholders, although such tax items must be
    prorated on a daily basis. Existing publicly traded partnerships
    are entitled to rely on these proposed Treasury Regulations;
    however, they are not binding on the IRS and are subject to
    change until final Treasury Regulations are issued. Accordingly,
    Latham&#160;&#038; Watkins LLP is unable to opine on the
    validity of this method of allocating income and deductions
    between transferor and transferee unitholders. If this method is
    not allowed under the Treasury Regulations, or only applies to
    transfers of less than all of the unitholder&#146;s interest,
    our taxable income or losses might be reallocated among the
    unitholders. We are authorized to revise our method of
    allocation between transferor and transferee unitholders, as
    well as unitholders whose interests vary during a taxable year,
    to conform to a method permitted under future Treasury
    Regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A unitholder who owns units at any time during a quarter and who
    disposes of them prior to the record date set for a cash
    distribution for that quarter will be allocated items of our
    income, gain, loss and deductions attributable to that quarter
    but will not be entitled to receive that cash distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Notification Requirements.</I>&#160;&#160;A unitholder who
    sells any of his units is generally required to notify us in
    writing of that sale within 30&#160;days after the sale (or, if
    earlier, January 15 of the year following the sale). A purchaser
    of units who purchases units from another unitholder is also
    generally required to notify us in writing of that purchase
    within 30&#160;days after the purchase. Upon receiving such
    notifications, we are required to notify the IRS of that
    transaction and to furnish specified information to the
    transferor and transferee. Failure to notify us of a purchase
    may, in some cases, lead to the imposition of penalties.
    However, these
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    183
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    reporting requirements do not apply to a sale by an individual
    who is a citizen of the U.S.&#160;and who effects the sale or
    exchange through a broker who will satisfy such requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Constructive Termination.</I>&#160;&#160;We will be
    considered to have been terminated for tax purposes if there are
    sales or exchanges which, in the aggregate, constitute 50% or
    more of the total interests in our capital and profits within a
    twelve-month period. For purposes of measuring whether the 50%
    threshold is reached, multiple sales of the same interest are
    counted only once. A constructive termination results in the
    closing of our taxable year for all unitholders. In the case of
    a unitholder reporting on a taxable year other than a fiscal
    year ending December&#160;31, the closing of our taxable year
    may result in more than twelve months of our taxable income or
    loss being includable in his taxable income for the year of
    termination. A constructive termination occurring on a date
    other than December 31 will result in us filing two tax returns
    (and unitholders could receive two Schedules K-1 if the relief
    discussed below is not available) for one fiscal year and the
    cost of the preparation of these returns will be borne by all
    common unitholders. We would be required to make new tax
    elections after a termination, including a new election under
    Section&#160;754 of the Internal Revenue Code, and a termination
    would result in a deferral of our deductions for depreciation. A
    termination could also result in penalties if we were unable to
    determine that the termination had occurred. Moreover, a
    termination might either accelerate the application of, or
    subject us to, any tax legislation enacted before the
    termination. The IRS has recently announced a relief procedure
    whereby if a publicly traded partnership that has technically
    terminated requests publicly traded partnership technical
    termination relief and the IRS grants such relief, among other
    things, the partnership will only have to provide one
    <FONT style="white-space: nowrap">Schedule&#160;K-1</FONT>
    to unitholders for the year notwithstanding two partnership tax
    years.
</DIV>

<A name='238'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Uniformity
    of Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because we cannot match transferors and transferees of units, we
    must maintain uniformity of the economic and tax characteristics
    of the units to a purchaser of these units. In the absence of
    uniformity, we may be unable to completely comply with a number
    of federal income tax requirements, both statutory and
    regulatory. A lack of uniformity can result from a literal
    application of Treasury
    <FONT style="white-space: nowrap">Regulation&#160;Section&#160;1.167(c)-1(a)(6).</FONT>
    Any non-uniformity could have a negative impact on the value of
    the units. Please read &#147;&#151;&#160;Tax Consequences of
    Unit Ownership&#160;&#151; Section&#160;754 Election.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to depreciate the portion of a Section&#160;743(b)
    adjustment attributable to unrealized appreciation in the value
    of Contributed Property, to the extent of any unamortized
    Book-Tax Disparity, using a rate of depreciation or amortization
    derived from the depreciation or amortization method and useful
    life applied to the property&#146;s unamortized Book-Tax
    Disparity, or treat that portion as nonamortizable, to the
    extent attributable to property the common basis of which is not
    amortizable, consistent with the regulations under
    Section&#160;743 of the Internal Revenue Code, even though that
    position may be inconsistent with Treasury
    <FONT style="white-space: nowrap">Regulation&#160;Section&#160;1.167(c)-1(a)(6),</FONT>
    which is not expected to directly apply to a material portion of
    our assets. Please read &#147;&#151;&#160;Tax Consequences of
    Unit Ownership&#160;&#151; Section&#160;754 Election.&#148; To
    the extent that the Section&#160;743(b) adjustment is
    attributable to appreciation in value in excess of the
    unamortized Book-Tax Disparity, we will apply the rules
    described in the Treasury Regulations and legislative history.
    If we determine that this position cannot reasonably be taken,
    we may adopt a depreciation and amortization position under
    which all purchasers acquiring units in the same month would
    receive depreciation and amortization deductions, whether
    attributable to a common basis or Section&#160;743(b)
    adjustment, based upon the same applicable methods and lives as
    if they had purchased a direct interest in our property. If this
    position is adopted, it may result in lower annual depreciation
    and amortization deductions than would otherwise be allowable to
    some unitholders and risk the loss of depreciation and
    amortization deductions not taken in the year that these
    deductions are otherwise allowable. This position will not be
    adopted if we determine that the loss of depreciation and
    amortization deductions will have a material adverse effect on
    the unitholders. If we choose not to utilize this aggregate
    method, we may use any other reasonable depreciation and
    amortization method to preserve the uniformity of the intrinsic
    tax characteristics of any units that would not have a material
    adverse effect on the unitholders. The IRS may challenge any
    method of depreciating the Section&#160;743(b) adjustment
    described in this paragraph. If this challenge were sustained,
    the uniformity of units
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    184
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    might be affected, and the gain from the sale of units might be
    increased without the benefit of additional deductions. Please
    read &#147;&#151;&#160;Disposition of Common Units&#160;&#151;
    Recognition of Gain or Loss.&#148;
</DIV>

<A name='239'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax-Exempt
    Organizations and Other Investors</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ownership of units by employee benefit plans, other tax-exempt
    organizations, non-resident aliens, foreign corporations and
    other foreign persons raises issues unique to those investors
    and, as described below to a limited extent, may have
    substantially adverse tax consequences to them. If you are a
    tax-exempt entity or a
    <FONT style="white-space: nowrap">non-U.S.&#160;person,</FONT>
    you should consult your tax advisor before investing in our
    common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Employee benefit plans and most other organizations exempt from
    federal income tax, including individual retirement accounts and
    other retirement plans, are subject to federal income tax on
    unrelated business taxable income. Virtually all of our income
    allocated to a unitholder that is a tax-exempt organization will
    be unrelated business taxable income and will be taxable to it
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Non-resident aliens and foreign corporations, trusts or estates
    that own units will be considered to be engaged in business in
    the U.S.&#160;because of the ownership of units. As a
    consequence, they will be required to file federal tax returns
    to report their share of our income, gain, loss or deduction and
    pay federal income tax at regular rates on their share of our
    net income or gain. Moreover, under rules applicable to publicly
    traded partnerships, we will withhold at the highest applicable
    effective tax rate from cash distributions made quarterly to
    foreign unitholders. Each foreign unitholder must obtain a
    taxpayer identification number from the IRS and submit that
    number to our transfer agent on a
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or applicable substitute form in order to obtain credit for
    these withholding taxes. A change in applicable law may require
    us to change these procedures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, because a foreign corporation that owns units will
    be treated as engaged in a U.S.&#160;trade or business, that
    corporation may be subject to the U.S.&#160;branch profits tax
    at a rate of 30%, in addition to regular federal income tax, on
    its share of our income and gain, as adjusted for changes in the
    foreign corporation&#146;s &#147;U.S.&#160;net equity,&#148;
    which is effectively connected with the conduct of a
    U.S.&#160;trade or business. That tax may be reduced or
    eliminated by an income tax treaty between the U.S.&#160;and the
    country in which the foreign corporate unitholder is a
    &#147;qualified resident.&#148; In addition, this type of
    unitholder is subject to special information reporting
    requirements under Section&#160;6038C of the Internal Revenue
    Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A foreign unitholder who sells or otherwise disposes of a common
    unit will be subject to U.S.&#160;federal income tax on gain
    realized from the sale or disposition of that unit to the extent
    the gain is effectively connected with a U.S.&#160;trade or
    business of the foreign unitholder. Under a ruling published by
    the IRS, interpreting the scope of &#147;effectively connected
    income,&#148; a foreign unitholder would be considered to be
    engaged in a trade or business in the U.S.&#160;by virtue of the
    U.S.&#160;activities of the partnership, and part or all of that
    unitholder&#146;s gain would be effectively connected with that
    unitholder&#146;s indirect U.S.&#160;trade or business.
    Moreover, under the Foreign Investment in Real Property Tax Act,
    a foreign common unitholder generally will be subject to
    U.S.&#160;federal income tax upon the sale or disposition of a
    common unit if (i)&#160;he owned (directly or constructively
    applying certain attribution rules) more than 5% of our common
    units at any time during the five-year period ending on the date
    of such disposition and (ii)&#160;50% or more of the fair market
    value of all of our assets consisted of U.S.&#160;real property
    interests at any time during the shorter of the period during
    which such unitholder held the common units or the
    <FONT style="white-space: nowrap">5-year</FONT>
    period ending on the date of disposition. Currently, more than
    50% of our assets consist of U.S.&#160;real property interests
    and we do not expect that to change in the foreseeable future.
    Therefore, foreign unitholders may be subject to federal income
    tax on gain from the sale or disposition of their units.
</DIV>

<A name='240'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Administrative
    Matters</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Information Returns and Audit Procedures.</I>&#160;&#160;We
    intend to furnish to each unitholder, within 90&#160;days after
    the close of each calendar year, specific tax information,
    including a
    <FONT style="white-space: nowrap">Schedule&#160;K-1,</FONT>
    which describes his share of our income, gain, loss and
    deduction for our preceding taxable year. In preparing this
    information, which will not be reviewed by counsel, we will take
    various accounting and reporting positions, some of which have
    been mentioned earlier, to determine each unitholder&#146;s
    share of income, gain, loss and deduction. We cannot
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    185
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    assure you that those positions will yield a result that
    conforms to the requirements of the Internal Revenue Code,
    Treasury Regulations or administrative interpretations of the
    IRS. Neither we nor Latham&#160;&#038; Watkins LLP can assure
    prospective unitholders that the IRS will not successfully
    contend in court that those positions are impermissible. Any
    challenge by the IRS could negatively affect the value of the
    units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The IRS may audit our federal income tax information returns.
    Adjustments resulting from an IRS audit may require each
    unitholder to adjust a prior year&#146;s tax liability, and
    possibly may result in an audit of his return. Any audit of a
    unitholder&#146;s return could result in adjustments not related
    to our returns as well as those related to our returns.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Partnerships generally are treated as separate entities for
    purposes of federal tax audits, judicial review of
    administrative adjustments by the IRS and tax settlement
    proceedings. The tax treatment of partnership items of income,
    gain, loss and deduction are determined in a partnership
    proceeding rather than in separate proceedings with the
    partners. The Internal Revenue Code requires that one partner be
    designated as the &#147;Tax Matters Partner&#148; for these
    purposes. Our partnership agreement names Oxford Resources GP,
    LLC as our Tax Matters Partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Tax Matters Partner has made and will make some elections on
    our behalf and on behalf of unitholders. In addition, the Tax
    Matters Partner can extend the statute of limitations for
    assessment of tax deficiencies against unitholders for items in
    our returns. The Tax Matters Partner may bind a unitholder with
    less than a 1% profits interest in us to a settlement with the
    IRS unless that unitholder elects, by filing a statement with
    the IRS, not to give that authority to the Tax Matters Partner.
    The Tax Matters Partner may seek judicial review, by which all
    the unitholders are bound, of a final partnership administrative
    adjustment and, if the Tax Matters Partner fails to seek
    judicial review, judicial review may be sought by any unitholder
    having at least a 1% interest in profits or by any group of
    unitholders having in the aggregate at least a 5% interest in
    profits. However, only one action for judicial review will go
    forward, and each unitholder with an interest in the outcome may
    participate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A unitholder must file a statement with the IRS identifying the
    treatment of any item on his federal income tax return that is
    not consistent with the treatment of the item on our return.
    Intentional or negligent disregard of this consistency
    requirement may subject a unitholder to substantial penalties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Nominee Reporting.</I>&#160;&#160;Persons who hold an
    interest in us as a nominee for another person are required to
    furnish to us:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the name, address and taxpayer identification number of the
    beneficial owner and the nominee;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    whether the beneficial owner is:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a person that is not a U.S.&#160;person;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a foreign government, an international organization or any
    wholly owned agency or instrumentality of either of the
    foregoing;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a tax-exempt entity;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the amount and description of units held, acquired or
    transferred for the beneficial owner;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    specific information including the dates of acquisitions and
    transfers, means of acquisitions and transfers, and acquisition
    cost for purchases, as well as the amount of net proceeds from
    sales.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Brokers and financial institutions are required to furnish
    additional information, including whether they are
    U.S.&#160;persons and specific information on units they
    acquire, hold or transfer for their own account. A penalty of
    $50 per failure, up to a maximum of $100,000 per calendar year,
    is imposed by the Internal Revenue Code for failure to report
    that information to us. The nominee is required to supply the
    beneficial owner of the units with the information furnished to
    us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Accuracy-Related Penalties.</I>&#160;&#160;An additional tax
    equal to 20% of the amount of any portion of an underpayment of
    tax that is attributable to one or more specified causes,
    including negligence or disregard of rules or regulations,
    substantial understatements of income tax and substantial
    valuation misstatements, is
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    186
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    imposed by the Internal Revenue Code. No penalty will be
    imposed, however, for any portion of an underpayment if it is
    shown that there was a reasonable cause for that portion and
    that the taxpayer acted in good faith regarding that portion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For individuals, a substantial understatement of income tax in
    any taxable year exists if the amount of the understatement
    exceeds the greater of 10% of the tax required to be shown on
    the return for the taxable year or $5,000 ($10,000 for most
    corporations). The amount of any understatement subject to
    penalty generally is reduced if any portion is attributable to a
    position adopted on the return:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    for which there is, or was, &#147;substantial
    authority&#148;;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    as to which there is a reasonable basis and the pertinent facts
    of that position are disclosed on the return.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any item of income, gain, loss or deduction included in the
    distributive shares of unitholders might result in that kind of
    an &#147;understatement&#148; of income for which no
    &#147;substantial authority&#148; exists, we must disclose the
    pertinent facts on our return. In addition, we will make a
    reasonable effort to furnish sufficient information for
    unitholders to make adequate disclosure on their returns and to
    take other actions as may be appropriate to permit unitholders
    to avoid liability for this penalty. More stringent rules apply
    to &#147;tax shelters,&#148; which we do not believe includes
    us, or any of our investments, plans or arrangements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A substantial valuation misstatement exists if (a)&#160;the
    value of any property, or the adjusted basis of any property,
    claimed on a tax return is 150% or more of the amount determined
    to be the correct amount of the valuation or adjusted basis,
    (b)&#160;the price for any property or services (or for the use
    of property) claimed on any such return with respect to any
    transaction between persons described in Internal Revenue Code
    Section&#160;482 is 200% or more (or 50% or less) of the amount
    determined under Section&#160;482 to be the correct amount of
    such price, or (c)&#160;the net Internal Revenue Code
    Section&#160;482 transfer price adjustment for the taxable year
    exceeds the lesser of $5&#160;million or 10% of the
    taxpayer&#146;s gross receipts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No penalty is imposed unless the portion of the underpayment
    attributable to a substantial valuation misstatement exceeds
    $5,000 ($10,000 for most corporations). If the valuation claimed
    on a return is 200% or more than the correct valuation, the
    penalty imposed increases to 40%. We do not anticipate making
    any valuation misstatements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Reportable Transactions.</I>&#160;&#160;If we were to engage
    in a &#147;reportable transaction,&#148; we (and possibly you
    and others) would be required to make a detailed disclosure of
    the transaction to the IRS. A transaction may be a reportable
    transaction based upon any of several factors, including the
    fact that it is a type of tax avoidance transaction publicly
    identified by the IRS as a &#147;listed transaction&#148; or
    that it produces certain kinds of losses for partnerships,
    individuals, S&#160;corporations, and trusts in excess of
    $2&#160;million in any single year, or $4&#160;million in any
    combination of 6 successive tax years. Our participation in a
    reportable transaction could increase the likelihood that our
    federal income tax information return (and possibly your tax
    return) would be audited by the IRS. Please read
    &#147;&#151;&#160;Information Returns and Audit Procedures.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Moreover, if we were to participate in a reportable transaction
    with a significant purpose to avoid or evade tax, or in any
    listed transaction, you may be subject to the following
    provisions of the American Jobs Creation Act of 2004:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    accuracy-related penalties with a broader scope, significantly
    narrower exceptions, and potentially greater amounts than
    described above at &#147;&#151;&#160;Accuracy-Related
    Penalties&#148;;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    for those persons otherwise entitled to deduct interest on
    federal tax deficiencies, nondeductibility of interest on any
    resulting tax liability;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    in the case of a listed transaction, an extended statute of
    limitations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not expect to engage in any &#147;reportable
    transactions.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    187
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='267'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recent
    Legislative Developments</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Current law may change so as to cause us to be treated as a
    corporation for federal income tax purposes or otherwise subject
    us to entity-level taxation. For example, members of Congress
    have recently considered and are considering substantive changes
    to the existing federal income tax laws that could affect
    certain publicly traded partnerships. As previously and
    currently proposed, we do not believe any such legislation would
    affect our tax treatment as a partnership. However, the proposed
    legislation could be modified in a way that could affect us. We
    are unable to predict whether any of these changes, or other
    proposals, will ultimately be enacted. Any such changes could
    negatively impact the value of an investment in our units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;1, 2010, the White House released President
    Obama&#146;s budget proposal for the fiscal year 2011 (the
    &#147;Budget Proposal&#148;). Among the changes contained in the
    Budget Proposal is the elimination of certain key
    U.S.&#160;federal income tax preferences currently available to
    coal exploration and development. The Budget Proposal would
    (i)&#160;eliminate current deductions and the
    <FONT style="white-space: nowrap">60-month</FONT>
    amortization for exploration and development costs relating to
    coal and other hard mineral fossil fuels, (ii)&#160;repeal the
    percentage depletion allowance with respect to coal properties,
    (iii)&#160;repeal capital gains treatment of coal and lignite
    royalties, and (iv)&#160;exclude from the definition of domestic
    production gross receipts all gross receipts derived from the
    sale, exchange, or other disposition of coal, other hard mineral
    fossil fuels, or primary products thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Legislation has been introduced in the Senate and includes many
    of the proposals outlined in the Budget Proposal. It is unclear
    whether any such changes will actually be enacted or, if
    enacted, how soon any such changes could become effective. The
    passage of any legislation as a result of the Budget Proposal or
    any other similar change in U.S.&#160;federal income tax law
    could affect certain tax deductions that are currently available
    with respect to coal exploration and development and could
    negatively impact the value of an investment in our units.
</DIV>

<A name='241'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">State,
    Local, Foreign and Other Tax Considerations</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to federal income taxes, you likely will be subject
    to other taxes, such as state, local and foreign income taxes,
    unincorporated business taxes, and estate, inheritance or
    intangible taxes that may be imposed by the various
    jurisdictions in which we do business or own property or in
    which you are a resident. Although an analysis of those various
    taxes is not presented here, each prospective unitholder should
    consider their potential impact on his investment in us. We will
    initially own property or do business in Illinois, Indiana,
    Kentucky, Ohio, Pennsylvania and West Virginia. Each of these
    states imposes a personal income tax on individuals. Most of
    these states also impose an income tax on corporations and other
    entities. We may also own property or do business in other
    jurisdictions in the future. Although you may not be required to
    file a return and pay taxes in some jurisdictions because your
    income from that jurisdiction falls below the filing and payment
    requirement, you will be required to file income tax returns and
    to pay income taxes in many of these jurisdictions in which we
    do business or own property and may be subject to penalties for
    failure to comply with those requirements. In some
    jurisdictions, tax losses may not produce a tax benefit in the
    year incurred and may not be available to offset income in
    subsequent taxable years. Some of the jurisdictions may require
    us, or we may elect, to withhold a percentage of income from
    amounts to be distributed to a unitholder who is not a resident
    of the jurisdiction. Withholding, the amount of which may be
    greater or less than a particular unitholder&#146;s income tax
    liability to the jurisdiction, generally does not relieve a
    nonresident unitholder from the obligation to file an income tax
    return. Amounts withheld will be treated as if distributed to
    unitholders for purposes of determining the amounts distributed
    by us. Please read &#147;&#151;&#160;Tax Consequences of Unit
    Ownership&#160;&#151; Entity-Level&#160;Collections.&#148; Based
    on current law and our estimate of our future operations, our
    general partner anticipates that any amounts required to be
    withheld will not be material.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>It is the responsibility of each unitholder to investigate
    the legal and tax consequences, under the laws of pertinent
    jurisdictions, of his investment in us. Accordingly, each
    prospective unitholder is urged to consult, and depend upon, his
    tax counsel or other advisor with regard to those matters.
    Further, it is the responsibility of each unitholder to file all
    state, local and foreign, as well as U.S.&#160;federal tax
    returns, that may be required of him. Latham&#160;&#038; Watkins
    LLP has not rendered an opinion on the state, local or foreign
    tax consequences of an investment in us.</B>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    188
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='242'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    IN OXFORD RESOURCE PARTNERS, LP BY EMPLOYEE BENEFIT
    PLANS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An investment in us by an employee benefit plan is subject to
    additional considerations because the investments of these plans
    are subject to the fiduciary responsibility and prohibited
    transaction provisions of ERISA and the restrictions imposed by
    Section&#160;4975 of the Internal Revenue Code and provisions
    under any federal, state, local,
    <FONT style="white-space: nowrap">non-U.S.&#160;or</FONT>
    other laws or regulations that are similar to such provisions of
    the Internal Revenue Code or ERISA (collectively, &#147;Similar
    Laws&#148;). For these purposes the term &#147;employee benefit
    plan&#148; includes, but is not limited to, qualified pension,
    profit-sharing and stock bonus plans, Keogh plans, simplified
    employee pension plans and tax deferred annuities or IRAs or
    annuities established or maintained by an employer or employee
    organization, and entities whose underlying assets are
    considered to include &#147;plan assets&#148; of such plans,
    accounts and arrangements. Among other things, consideration
    should be given to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    whether the investment is prudent under
    Section&#160;404(a)(1)(B) of ERISA and any other applicable
    Similar Laws;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    whether in making the investment, the plan will satisfy the
    diversification requirements of Section&#160;404(a)(1)(C) of
    ERISA and any other applicable Similar Laws;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    whether the investment will result in recognition of unrelated
    business taxable income by the plan and, if so, the potential
    after-tax investment return. Please read &#147;Material Federal
    Income Tax Consequences&#160;&#151; Tax-Exempt Organizations and
    Other Investors;&#148;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    whether making such an investment will comply with the
    delegation of control and prohibited transaction provisions of
    ERISA, the Internal Revenue Code and any other applicable
    Similar Laws.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The person with investment discretion with respect to the assets
    of an employee benefit plan, often called a fiduciary, should
    determine whether an investment in us is authorized by the
    appropriate governing instrument and is a proper investment for
    the plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;406 of ERISA and Section&#160;4975 of the Internal
    Revenue Code prohibit employee benefit plans, and IRAs that are
    not considered part of an employee benefit plan, from engaging
    in specified transactions involving &#147;plan assets&#148; with
    parties that, with respect to the plan, are &#147;parties in
    interest&#148; under ERISA or &#147;disqualified persons&#148;
    under the Internal Revenue Code unless an exemption is
    available. A party in interest or disqualified person who
    engages in a non-exempt prohibited transaction may be subject to
    excise taxes and other penalties and liabilities under ERISA and
    the Internal Revenue Code. In addition, the fiduciary of the
    ERISA plan that engaged in such a non-exempt prohibited
    transaction may be subject to penalties and liabilities under
    ERISA and the Internal Revenue Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to considering whether the purchase of common units
    is a prohibited transaction, a fiduciary should consider whether
    the plan will, by investing in us, be deemed to own an undivided
    interest in our assets, with the result that our general partner
    would also be a fiduciary of such plan and our operations would
    be subject to the regulatory restrictions of ERISA, including
    its prohibited transaction rules, as well as the prohibited
    transaction rules of the Internal Revenue Code, ERISA and any
    other applicable Similar Laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Department of Labor regulations and Section&#160;3(42) of
    ERISA provide guidance with respect to whether, in certain
    circumstances, the assets of an entity in which employee benefit
    plans acquire equity interests would be deemed &#147;plan
    assets.&#148; Under these rules, an entity&#146;s assets would
    not be considered to be &#147;plan assets&#148; if, among other
    things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;the equity interests acquired by the employee benefit
    plan are publicly offered securities&#160;&#151; i.e., the
    equity interests are widely held by 100 or more investors
    independent of the issuer and each other, are freely
    transferable and are registered under certain provisions of the
    federal securities laws;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;the entity is an &#147;operating
    company,&#148;&#160;&#151; i.e., it is primarily engaged in the
    production or sale of a product or service, other than the
    investment of capital, either directly or through a
    majority-owned subsidiary or subsidiaries;&#160;or
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    189
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 7%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;there is no significant investment by benefit plan
    investors, which is defined to mean that less than 25% of the
    value of each class of equity interest, disregarding any such
    interests held by our general partner, its affiliates and some
    other persons, is held generally by the employee benefit plans
    referred to above that are subject to ERISA and IRAs and other
    similar vehicles that are subject to Section&#160;4975 of the
    Internal Revenue Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our assets should not be considered &#147;plan assets&#148;
    under these regulations because it is expected that the
    investment will satisfy the requirements in (a)&#160;and
    (b)&#160;above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In light of the serious penalties imposed on persons who engage
    in prohibited transactions or other violations, plan fiduciaries
    contemplating a purchase of common units should consult with
    their own counsel regarding the consequences under ERISA, the
    Internal Revenue Code and other Similar Laws.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    190
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='243'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Barclays Capital Inc. and Citigroup Global Markets Inc. are
    acting as representatives of the underwriters and as joint
    book-running managers of this offering. Under the terms of an
    underwriting agreement, which will be filed as an exhibit to the
    registration statement relating to this prospectus, each of the
    underwriters named below has severally agreed to purchase from
    us the respective number of common units shown opposite its name
    below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="86%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of <BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Underwriters</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Units</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Barclays Capital Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Citigroup Global Markets Inc.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriting agreement provides that the underwriters&#146;
    obligation to purchase the common units depends on the
    satisfaction of the conditions contained in the underwriting
    agreement including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the obligation to purchase all of the common units offered
    hereby (other than those common units covered by their option to
    purchase additional common units as described below), if any of
    the common units are purchased;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the representations and warranties made by us to the
    underwriters are true;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    there is no material change in our business or the financial
    markets;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    we deliver customary closing documents to the underwriters.
</TD>
</TR>

</TABLE>

<A name='244'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Commissions
    and Expenses</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the underwriting discounts and
    commissions we will pay to the underwriters. These amounts are
    shown assuming both no exercise and full exercise of the
    underwriters&#146; option to purchase additional common units.
    The underwriting fee is the difference between the initial price
    to the public and the amount the underwriters pay to us for the
    common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="76%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>No Exercise</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Full Exercise</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Per Common Unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The representatives of the underwriters have advised us that the
    underwriters propose to offer the common units directly to the
    public at the public offering price on the cover of this
    prospectus and to selected dealers, which may include the
    underwriters, at such offering price less a selling concession
    not in excess of $&#160;&#160;&#160;&#160;&#160; per common
    unit. After the offering, the representatives may change the
    offering price and other selling terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The expenses of the offering that are payable by us are
    estimated to be $&#160;&#160;&#160;&#160;&#160; (excluding
    underwriting discounts and commissions).
</DIV>

<A name='245'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Option to
    Purchase Additional Common Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have granted the underwriters an option exercisable for
    30&#160;days after the date of the underwriting agreement, to
    purchase, from time to time, in whole or in part, up to an
    aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;additional
    common units at the public offering price less underwriting
    discounts and commissions. This option may be exercised if the
    underwriters sell more
    than&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units in connection with this offering. To the extent that this
    option is exercised, each underwriter will be obligated, subject
    to certain conditions, to purchase its pro rata portion of these
    additional common units based on the underwriter&#146;s
    underwriting commitment in the offering as indicated in the
    table at the beginning of this Underwriting section.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    191
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='246'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Lock-Up</FONT>
    Agreements</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We, our subsidiaries, our general partner and its affiliates,
    including C&#038;T Coal and AIM Oxford and the directors and
    executive officers of our general partner, have agreed that
    without the prior written consent of Barclays Capital Inc., we
    and they will not directly or indirectly, (1)&#160;offer for
    sale, sell, pledge, or otherwise dispose of (or enter into any
    transaction or device that is designed to, or could be expected
    to, result in the disposition by any person at any time in the
    future of) any our common units (including, without limitation,
    common units that may be deemed to be beneficially owned by us
    or them in accordance with the rules and regulations of the
    Securities and Exchange Commission and common units that may be
    issued upon exercise of any options or warrants) or securities
    convertible into or exercisable or exchangeable for common
    units, (2)&#160;enter into any swap or other derivatives
    transaction that transfers to another, in whole or in part, any
    of the economic consequences of ownership of the common units,
    (3)&#160;make any demand for or exercise any right or file or
    cause to be filed a registration statement, including any
    amendments thereto, with respect to the registration of any
    common units or securities convertible, exercisable or
    exchangeable into common units or any of our other securities,
    or (4)&#160;publicly disclose the intention to do any of the
    foregoing for a period of 180&#160;days after the date of this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The <FONT style="white-space: nowrap">180-day</FONT>
    restricted period described in the preceding paragraph will be
    extended if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    during the last 17&#160;days of the
    <FONT style="white-space: nowrap">180-day</FONT>
    restricted period we issue an earnings release or material news
    or a material event relating to us occurs;&#160;or
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    prior to the expiration of the
    <FONT style="white-space: nowrap">180-day</FONT>
    restricted period, we announce that we will release earnings
    results during the
    <FONT style="white-space: nowrap">16-day</FONT>
    period beginning on the last day of the
    <FONT style="white-space: nowrap">180-day</FONT>
    period, in which case the restrictions described in the
    preceding paragraph will continue to apply until the expiration
    of the
    <FONT style="white-space: nowrap">18-day</FONT>
    period beginning on the issuance of the earnings release or the
    announcement of the material news or occurrence of material
    event unless such extension is waived in writing by Barclays
    Capital Inc.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Barclays Capital Inc., in its sole discretion, may release the
    common units and other securities subject to the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements described above in whole or in part at any time with
    or without notice. When determining whether or not to release
    common units and other securities from
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements, Barclays Capital Inc. will consider, among other
    factors, the holder&#146;s reasons for requesting the release,
    the number of common units and other securities for which the
    release is being requested and market conditions at the time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As described below under &#147;&#151;&#160;Directed Unit
    Program,&#148; any participants in the Directed Unit Program
    will be subject to a
    <FONT style="white-space: nowrap">180-day</FONT> lock
    up with respect to any common units sold to them pursuant to
    that program. This lock up will have similar restrictions and an
    identical extension provision as the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreement described above. Any common units sold in the Directed
    Unit Program to our general partner&#146;s directors or officers
    will be subject to the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreement described above.
</DIV>

<A name='247'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Offering
    Price Determination</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to this offering, there has been no public market for our
    common units. The initial public offering price will be
    negotiated between the representatives and us. In determining
    the initial public offering price of our common units, the
    representatives will consider:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the history and prospects for the industry in which we compete;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our financial information;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the ability of our management and our business potential and
    earning prospects;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the prevailing securities markets at the time of this
    offering;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the recent market prices of, and the demand for, publicly traded
    common units of generally comparable companies.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    192
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='248'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnification</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have agreed to indemnify the underwriters against certain
    liabilities, including liabilities under the Securities Act and
    liabilities incurred in connection with the Directed Unit
    Program referred to below, and to contribute to payments that
    the underwriters may be required to make for these liabilities.
</DIV>

<A name='249'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Directed
    Unit Program</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At our request, the underwriters have established a Directed
    Unit Program under which they have reserved for sale at the
    initial public offering price up
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units offered hereby for officers, directors, employees
    and certain other persons associated with us. The number of
    common units available for sale to the general public will be
    reduced by the number of directed common units purchased by
    participants in the program. Any directed common units not so
    purchased will be offered by the underwriters to the general
    public on the same basis as the other common units offered
    hereby. Any participants in this program will be prohibited from
    selling, pledging or assigning any common units sold to them
    pursuant to this program for a period of 180&#160;days after the
    date of this prospectus. This
    <FONT style="white-space: nowrap">180-day</FONT> lock
    up period will be extended with respect to our issuance of an
    earnings release or if a material news or a material event
    relating to us occurs, in the same manner as described above
    under
    <FONT style="white-space: nowrap">&#147;&#151;&#160;Lock-Up</FONT>
    Agreements.&#148;
</DIV>

<A name='250'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stabilization,
    Short Positions and Penalty Bids</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The representatives may engage in stabilizing transactions,
    short sales and purchases to cover positions created by short
    sales, and penalty bids or purchases for the purpose of pegging,
    fixing or maintaining the price of the common units, in
    accordance with Regulation&#160;M under the Exchange Act:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Stabilizing transactions permit bids to purchase the underlying
    security so long as the stabilizing bids do not exceed a
    specified maximum.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    A short position involves a sale by the underwriters of common
    units in excess of the number of common units the underwriters
    are obligated to purchase in the offering, which creates the
    syndicate short position. This short position may be either a
    covered short position or a naked short position. In a covered
    short position, the number of common units involved in the sales
    made by the underwriters in excess of the number of common units
    they are obligated to purchase is not greater than the number of
    common units that they may purchase by exercising their option
    to purchase additional common units. In a naked short position,
    the number of common units involved is greater than the number
    of common units in their option to purchase additional common
    units. The underwriters may close out any short position by
    either exercising their option to purchase additional common
    units <FONT style="white-space: nowrap">and/or</FONT>
    purchasing common units in the open market. In determining the
    source of common units to close out the short position, the
    underwriters will consider, among other things, the price of
    common units available for purchase in the open market as
    compared to the price at which they may purchase common units
    through their option to purchase additional common units. A
    naked short position is more likely to be created if the
    underwriters are concerned that there could be downward pressure
    on the price of the common units in the open market after
    pricing that could adversely affect investors who purchase in
    the offering.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Syndicate covering transactions involve purchases of the common
    units in the open market after the distribution has been
    completed in order to cover syndicate short positions.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    Penalty bids permit the representatives to reclaim a selling
    concession from a syndicate member when the common units
    originally sold by the syndicate member are purchased in a
    stabilizing or syndicate covering transaction to cover syndicate
    short positions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These stabilizing transactions, syndicate covering transactions
    and penalty bids may have the effect of raising or maintaining
    the market price of our common units or preventing or retarding
    a decline in the market price of the common units. As a result,
    the price of the common units may be higher than the price that
    might otherwise exist in the open market. These transactions may
    be effected on The New York Stock Exchange or otherwise and, if
    commenced, may be discontinued at any time.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    193
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither we nor any of the underwriters make any representation
    or prediction as to the direction or magnitude of any effect
    that the transactions described above may have on the price of
    the common units. In addition, neither we nor any of the
    underwriters make any representation that the representatives
    will engage in these stabilizing transactions or that any
    transaction, once commenced, will not be discontinued without
    notice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<A name='251'>
<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Electronic
    Distribution</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A prospectus in electronic format may be made available on the
    Internet sites or through other online services maintained by
    one or more of the underwriters
    <FONT style="white-space: nowrap">and/or</FONT>
    selling group members participating in this offering, or by
    their affiliates. In those cases, prospective investors may view
    offering terms online and, depending upon the particular
    underwriter or selling group member, prospective investors may
    be allowed to place orders online. The underwriters may agree
    with us to allocate a specific number of common units for sale
    to online brokerage account holders. Any such allocation for
    online distributions will be made by the representatives on the
    same basis as other allocations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other than the prospectus in electronic format, the information
    on any underwriter&#146;s or selling group member&#146;s web
    site and any information contained in any other web site
    maintained by an underwriter or selling group member is not part
    of the prospectus or the registration statement of which this
    prospectus forms a part, has not been approved
    <FONT style="white-space: nowrap">and/or</FONT>
    endorsed by us or any underwriter or selling group member in its
    capacity as underwriter or selling group member and should not
    be relied upon by investors.
</DIV>

<A name='252'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">New York
    Stock Exchange</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to apply to list our common units on the New York
    Stock Exchange under the symbol &#147;OXF.&#148; The
    underwriters have undertaken to sell the minimum number of
    common units to the minimum number of beneficial owners
    necessary to meet the New York Stock Exchange distribution
    requirements for trading.
</DIV>

<A name='253'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Discretionary
    Sales</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The underwriters have informed us that they do not intend to
    confirm sales to discretionary accounts that exceed 5% of the
    total number of common units offered by them.
</DIV>

<A name='254'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stamp
    Taxes</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you purchase common units offered by this prospectus, you may
    be required to pay stamp taxes and other charges under the laws
    and practices of the country of purchase, in addition to the
    offering price listed on the cover page of this prospectus.
</DIV>

<A name='255'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Relationships/FINRA
    Conduct Rules</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An affiliate of Citigroup Global Markets Inc. has performed
    commercial banking services for us for which it has received
    customary fees and expenses. The underwriters and their
    affiliates may in the future perform investment banking,
    commercial banking and advisory services for us from time to
    time for which they may in the future receive customary fees and
    expenses. An affiliate of Citigroup Global Markets Inc. is a
    lender under our new credit facility and our existing credit
    facility and will receive a portion of the net proceeds from
    this offering pursuant to our repayment of the outstanding
    balance under our existing credit facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because the Financial Industry Regulatory Authority, Inc., or
    FINRA, views the common units offered hereby as interests in a
    direct participation program, there is no conflict of interest
    between us and the underwriters under Rule&#160;2720 of the
    National Association of Securities Dealers, Inc., or NASD,
    Conduct Rules and the offering is being made in compliance with
    Rule&#160;2310 of the FINRA Rules. Investor suitability with
    respect to the common units should be judged similarly to the
    suitability with respect to other securities that are listed for
    trading on a national securities exchange.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    194
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='268'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Selling
    Restrictions</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Public
    Offer Selling Restrictions Under the Prospectus
    Directive</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In relation to each member state of the European Economic Area
    that has implemented the Prospectus Directive (each, a relevant
    member state), with effect from and including the date on which
    the Prospectus Directive is implemented in that relevant member
    state (the relevant implementation date), an offer of securities
    described in this prospectus may not be made to the public in
    that relevant member state other than:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to any legal entity that is authorized or regulated to operate
    in the financial markets or, if not so authorized or regulated,
    whose corporate purpose is solely to invest in securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to any legal entity that has two or more of (1)&#160;an average
    of at least 250&#160;employees during the last financial year;
    (2)&#160;a total balance sheet of more than &#128;43,000,000 and
    (3)&#160;an annual net turnover of more than &#128;50,000,000,
    as shown in its last annual or consolidated accounts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to fewer than 100 natural or legal persons (other than qualified
    investors as defined in the Prospectus Directive) subject to
    obtaining the prior consent of the representatives;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in any other circumstances that do not require the publication
    of a prospectus pursuant to Article&#160;3 of the Prospectus
    Directive,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    provided that no such offer of securities shall require us or
    any underwriter to publish a prospectus pursuant to
    Article&#160;3 of the Prospectus Directive.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this provision, the expression an &#147;offer of
    securities to the public&#148; in any relevant member state
    means the communication in any form and by any means of
    sufficient information on the terms of the offer and the
    securities to be offered so as to enable an investor to decide
    to purchase or subscribe for the securities, as the expression
    may be varied in that member state by any measure implementing
    the Prospectus Directive in that member state, and the
    expression &#147;Prospectus Directive&#148; means Directive
    2003/71/EC and includes any relevant implementing measure in
    each relevant member state.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have not authorized and do not authorize the making of any
    offer of securities through any financial intermediary on their
    behalf, other than offers made by the underwriters with a view
    to the final placement of the securities as contemplated in this
    prospectus. Accordingly, no purchaser of the securities, other
    than the underwriters, is authorized to make any further offer
    of the securities on behalf of us or the underwriters.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Selling
    Restrictions Addressing Additional United Kingdom Securities
    Laws</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus is only being distributed to, and is only
    directed at, persons in the United Kingdom that are qualified
    investors within the meaning of Article&#160;2(1)(e) of the
    Prospectus Directive (&#147;Qualified Investors&#148;) that are
    also (i)&#160;investment professionals falling within
    Article&#160;19(5) of the Financial Services and Markets Act
    2000 (Financial Promotion) Order 2005 (the &#147;Order&#148;) or
    (ii)&#160;high net worth entities, and other persons to whom it
    may lawfully be communicated, falling within
    Article&#160;49(2)(a) to (d)&#160;of the Order (all such persons
    together being referred to as &#147;relevant persons&#148;).
    This prospectus and its contents are confidential and should not
    be distributed, published or reproduced (in whole or in part) or
    disclosed by recipients to any other persons in the United
    Kingdom. Any person in the United Kingdom that is not a relevant
    person should not act or rely on this document or any of its
    contents.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Notice
    to Prospective Investors in Switzerland</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This document, as well as any other material relating to the
    common units that are the subject of the offering contemplated
    by this prospectus, do not constitute an issue prospectus
    pursuant to Article&#160;652a
    <FONT style="white-space: nowrap">and/or</FONT> 1156
    of the Swiss Code of Obligations. The common units will not be
    listed on the SIX Swiss Exchange and, therefore, the documents
    relating to the common units, including, but not limited to,
    this document, do not claim to comply with the disclosure
    standards of the listing rules of SIX Swiss Exchange and
    corresponding prospectus schemes annexed to the listing rules of
    the SIX Swiss Exchange. The common units are being offered in
    Switzerland by way of a private placement, i.e., to a small
    number of selected investors only,
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    195
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    without any public offer and only to investors who do not
    purchase the common units with the intention to distribute them
    to the public. The investors will be individually approached by
    the issuer from time to time. This document, as well as any
    other material relating to the common units, is personal and
    confidential and do not constitute an offer to any other person.
    This document may only be used by those investors to whom it has
    been handed out in connection with the offering described herein
    and may neither directly nor indirectly be distributed or made
    available to other persons without express consent of the
    issuer. It may not be used in connection with any other offer
    and shall in particular not be copied
    <FONT style="white-space: nowrap">and/or</FONT>
    distributed to the public in (or from) Switzerland.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    196
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='256'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">VALIDITY
    OF THE COMMON UNITS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the common units offered hereby will be passed
    upon for us by Latham&#160;&#038; Watkins LLP, Houston, Texas.
    Certain legal matters in connection with the common units
    offered hereby will be passed upon for the underwriters by
    Andrews Kurth LLP, Houston, Texas.
</DIV>

<A name='257'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The consolidated financial statements of Oxford Resource
    Partners, LP and subsidiaries for the years ended
    December&#160;31, 2009 and 2008, the period from August&#160;24,
    2007 to December&#160;31, 2007 and of Oxford Mining Company and
    subsidiaries (the predecessor) for the period from
    January&#160;1, 2007 to August&#160;23, 2007 have been included
    in this prospectus in reliance upon the report of Grant Thornton
    LLP an independent registered public accounting firm, appearing
    elsewhere herein and upon the authority of said firm as experts
    in accounting and auditing in giving said reports.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The combined financial statements for the carved-out surface
    mining operations of Phoenix Coal Inc. for the nine months ended
    September&#160;30, 2009 and the years ended December&#160;31,
    2008 and 2007 included in this prospectus have been audited by
    Ernst&#160;&#038; Young LLP an independent registered public
    accounting firm, as set forth in their report thereon appearing
    elsewhere herein, and are included in reliance upon such report
    given on the authority of said firm as experts in accounting and
    auditing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The information included in this prospectus relating to the
    estimates of our proven and probable reserves associated with
    our surface mining operations in Ohio is derived from our
    internal estimates, which estimates were audited by John T. Boyd
    Company, an independent mining and geological consulting firm.
    The information included in this prospectus relating to the
    estimates of our proven and probable reserves associated with
    our surface mining operations in the Illinois Basin and our
    proven and probable underground coal reserves is derived from
    reserve reports prepared by John T. Boyd Company. This
    information is included in this prospectus upon the authority of
    said firm as an expert.
</DIV>

<A name='258'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have filed with the SEC a registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    regarding the common units. This prospectus does not contain all
    of the information found in the registration statement. For
    further information regarding us and the common units offered in
    this prospectus, you may desire to review the full registration
    statement, including the exhibits. The registration statement,
    including the exhibits, may be inspected and copied at the
    public reference facilities maintained by the SEC at
    100&#160;F&#160;Street, N.E., Room&#160;1580,
    Washington,&#160;D.C. 20549. Copies of this material can also be
    obtained upon written request from the Public Reference Section
    of the SEC at 100&#160;F&#160;Street, N.E., Room&#160;1580,
    Washington,&#160;D.C. 20549 at prescribed rates or from the
    SEC&#146;s web site on the Internet at
    <FONT style="white-space: nowrap">http://www.sec.gov.</FONT>
    Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on public reference rooms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of the offering, we will file with or furnish to the
    SEC periodic reports and other information. These reports and
    other information may be inspected and copied at the public
    reference facilities maintained by the SEC or obtained from the
    SEC&#146;s website as provided above. Our website on the
    Internet will be located at
    <FONT style="white-space: nowrap">http://www.oxfordresources.com,</FONT>
    and we expect to make our periodic reports and other information
    filed with or furnished to the SEC available, free of charge,
    through our website, as soon as reasonably practicable after
    those reports and other information are electronically filed
    with or furnished to the SEC. Information on our website or any
    other website is not incorporated by reference into this
    prospectus and does not constitute a part of this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to furnish or make available to our unitholders annual
    reports containing our audited financial statements prepared in
    accordance with GAAP. Our annual report will contain a detailed
    statement of any transactions with our general partner or its
    affiliates, and of fees, commissions, compensation and other
    benefits paid, or accrued to our general partner or its
    affiliates for the fiscal year completed, showing the amount
    paid or accrued to each recipient and the services performed. We
    also intend to furnish or make
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    197
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    available to our unitholders quarterly reports containing our
    unaudited interim financial information, including the
    information required by
    <FONT style="white-space: nowrap">Form&#160;10-Q,</FONT>
    for the first three fiscal quarters of each fiscal year.
</DIV>

<A name='259'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FORWARD-LOOKING
    STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Some of the information in this prospectus may contain
    forward-looking statements. These statements can be identified
    by the use of forward-looking terminology including
    &#147;will,&#148; &#147;may,&#148; &#147;believe,&#148;
    &#147;expect,&#148; &#147;anticipate,&#148;
    &#147;estimate,&#148; &#147;continue,&#148; or other similar
    words. These statements discuss future expectations, contain
    projections of financial condition or of results of operations,
    or state other &#147;forward-looking&#148; information. These
    forward-looking statements involve risks and uncertainties. When
    considering these forward-looking statements, you should keep in
    mind the risk factors and other cautionary statements in this
    prospectus. The risk factors and other factors noted throughout
    this prospectus could cause our actual results to differ
    materially from those contained in any forward-looking statement.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    198
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='260'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INDEX TO
    FINANCIAL STATEMENTS</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#300'><B>Oxford Resource Partners, LP and
    Subsidiaries</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#301'>Introduction</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#302'>Unaudited Pro Forma Consolidated Balance Sheet as
    of December&#160;31, 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#303'>Unaudited Pro Forma Consolidated Statement of
    Operations for the year ended December&#160;31, 2009</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#304'>Notes to Unaudited Pro Forma Consolidated
    Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Report of Independent Registered Public Accounting Firm
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Consolidated Balance Sheets as of December&#160;31, 2009 and 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Consolidated Statements of Operations for the years ended
    December&#160;31, 2009 and 2008 and the period from
    August&#160;24, 2007 to December&#160;31, 2007 and Predecessor
    Statement of Operations for the period from January&#160;1, 2007
    to August&#160;23, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Consolidated Statements of Partners&#146; Capital for the years
    ended December&#160;31, 2009 and 2008 and the period from
    August&#160;24, 2007 to December&#160;31, 2007 and Predecessor
    Statement of Shareholders&#146; Equity for the period from
    January&#160;1, 2007 to August&#160;23, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Consolidated Statements of Cash Flows for the years ended
    December&#160;31, 2009 and 2008 and the period from
    August&#160;24, 2007 to December&#160;31, 2007 and Predecessor
    Statement of Cash Flows for the period from January&#160;1, 2007
    to August&#160;23, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-12
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Notes to Consolidated Financial Statements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Carved-Out Surface Mining Operations of Phoenix Coal Inc.</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Report of Independent Auditors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-37
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Combined Balance Sheets as of September&#160;30, 2009 and
    December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-38
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Combined Statements of Operations and Comprehensive Loss for the
    periods ended September&#160;30, 2009 and December&#160;31, 2008
    and 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-39
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Combined Statements of Group Equity for the periods ended
    September&#160;30, 2009 and December&#160;31, 2008 and 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-40
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Combined Statements of Cash Flows for the periods ended
    September&#160;30, 2009 and December&#160;31, 2008 and 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Notes to Combined Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    F-42
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='300'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP<BR>
    UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>

</A>
<A name='301'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Introduction</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Set forth below are the unaudited pro forma consolidated balance
    sheet of Oxford Resource Partners, LP as of December&#160;31,
    2009 and the unaudited pro forma consolidated statement of
    operations of Oxford Resource Partners, LP for the year ended
    December&#160;31, 2009. References to &#147;we,&#148;
    &#147;us&#148; and &#147;our&#148; mean Oxford Resource
    Partners, LP and its consolidated subsidiaries, unless the
    context requires otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our unaudited pro forma consolidated balance sheet, which
    presents the pro forma effects of the transactions described
    below under &#147;&#151;&#160;Pro Forma Consolidated Balance
    Sheet&#148; (the &#147;Offering Transactions&#148;) as if such
    transactions occurred on December&#160;31, 2009, has been
    derived from, and should be read in conjunction with, our
    audited historical financial statements included elsewhere in
    this prospectus. Our unaudited pro forma consolidated statement
    of operations, which presents the pro forma effects of the
    Offering Transactions and the Phoenix Coal acquisition described
    below under &#147;&#151;&#160;Pro Forma Consolidated Statement
    of Operations&#148; as if such transactions occurred on
    January&#160;1, 2009, has been derived from, and should be read
    in conjunction with, our audited historical financial statements
    included elsewhere in this prospectus and the audited combined
    statements of operations and comprehensive loss for the
    carved-out surface mining operations of Phoenix Coal Inc.
    included elsewhere in this prospectus. We have not made pro
    forma adjustments to our audited historical consolidated balance
    sheet as of December&#160;31, 2009 for the Phoenix Coal
    acquisition because that acquisition occurred on
    September&#160;30, 2009, and, therefore, the effects of that
    acquisition are already reflected in our audited historical
    consolidated balance sheet as of December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our unaudited pro forma consolidated financial statements are
    based on certain assumptions and do not purport to be indicative
    of the results that actually would have been achieved if the
    Offering Transactions and the Phoenix Coal acquisition, as
    applicable, had been completed on the dates set forth above.
    Moreover, they do not project our financial position or results
    of operations as of any future date or for any future period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Pro Forma
    Consolidated Balance Sheet</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our unaudited pro forma consolidated balance sheet is derived
    from our audited historical consolidated balance sheet as of
    December&#160;31, 2009. The &#147;Adjustments for Offering
    Transactions&#148; column in our unaudited pro forma
    consolidated balance sheet contains the adjustments that we
    believe are appropriate to give effect to the Offering
    Transactions that will occur in connection with our initial
    public offering (the &#147;Offering&#148;) assuming a
    December&#160;31, 2009 offering date. Please read
    &#147;&#151;&#160;Note&#160;1. Pro Forma Consolidated Balance
    Sheet Adjustments.&#148; The Offering Transactions include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our distribution of approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million of cash and
    accounts receivable to Oxford Resources GP, LLC (our
    &#147;General Partner&#148;), C&#038;T Coal, Inc.
    (&#147;C&#038;T Coal&#148;), AIM Oxford Holdings, LLC (&#147;AIM
    Oxford&#148;), and the participants in our Long-Term Incentive
    Plan (our &#147;LTIP&#148;) pro rata;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    our entry into a new credit facility;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the conversion of our General Partner&#146;s 2.0% general
    partner interest in us, represented
    by&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    general partner units,
    into&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    general partner units representing a 2.0% general partner
    interest in us;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the conversion of all of our Class&#160;B common units held by
    C&#038;T Coal, representing a&#160;&#160;&#160;&#160;&#160;%
    limited partner interest in us, into:
    (i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units, representing a&#160;&#160;&#160;&#160;&#160;% limited
    partner interest in us and
    (ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units, representing a&#160;&#160;&#160;&#160;&#160;% limited
    partner interest in us;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the conversion of all of our Class&#160;B common units held by
    AIM Oxford, representing a&#160;&#160;&#160;&#160;&#160;%
    limited partner interest in us, into:
    (i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units, representing a&#160;&#160;&#160;&#160;&#160;% limited
    partner interest in us and
    (ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;subordinated
    units, representing a&#160;&#160;&#160;&#160;&#160;% limited
    partner interest in us;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNAUDITED
    PRO FORMA CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the receipt by the participants in our LTIP of a distribution
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units for each common unit they currently own, resulting in
    their ownership
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;common
    units, representing an aggregate&#160;&#160;&#160;&#160;&#160;%
    limited partner interest in us;
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the issuance by us to the public
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units, representing a&#160;&#160;&#160;&#160;&#160;%
    limited partner interest in us;
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the use of the net proceeds from the Offering to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    repay in full the outstanding balance under our existing credit
    facility;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    distribute approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million to C&#038;T Coal in
    respect of its limited partner interest in us;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    distribute approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million to certain
    participants in the LTIP in respect of their limited partner
    interests in us;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    pay offering expenses of approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the use of the net proceeds from borrowings under our new credit
    facility of approximately $&#160;&#160;&#160;&#160;&#160; to
    distribute approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;million to AIM Oxford in
    respect of its limited partner interest in us and to pay fees
    and expenses associated with our new credit facility of
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;million.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Pro Forma
    Consolidated Statement of Operations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;30, 2009, we acquired 100% of the active
    surface mining coal operations of Phoenix Coal. Our unaudited
    pro forma consolidated statement of operations is derived from
    our audited historical consolidated statement of operations for
    the year ended December&#160;31, 2009 and the audited combined
    statements of operations and comprehensive loss for the
    <FONT style="white-space: nowrap">carved-out</FONT>
    surface mining operations of Phoenix Coal Inc. for the
    nine-month period ended September&#160;30, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The &#147;Pro Forma Adjustments&#148; column in our unaudited
    pro forma consolidated statement of operations contains the
    adjustments that we believe are appropriate to present the
    Phoenix Coal acquisition on a pro forma basis assuming a
    January&#160;1, 2009 acquisition date. Please read
    &#147;&#151;&#160;Note&#160;2. Pro Forma Consolidated Statement
    of Operations Adjustments.&#148; These adjustments include,
    among other things, the following:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    increases in revenue as a result of the amortization of
    below-market coal sales contracts during the period from
    January&#160;1, 2009 to September&#160;30, 2009 (the &#147;Stub
    Period&#148;);
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    adjustments in depreciation, depletion and amortization expense,
    or DD&#038;A expense, over the Stub Period due to a new fair
    value basis of assets as a result of change in control
    accounting and our leasing of equipment from a third party that
    was previously owned by Phoenix Coal;&#160;and
</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    various adjustments to apply our accounting policies to the
    Phoenix Coal financial statements during the Stub Period.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The &#147;Adjustments for Offering Transactions&#148; column in
    our unaudited pro forma consolidated statement of operations
    contains the adjustments that we believe are appropriate to give
    effect to the Offering Transactions that will occur in
    connection with the Offering assuming a January&#160;1, 2009
    offering date. Please read &#147;&#151;&#160;Note&#160;2. Pro
    Forma Consolidated Statement of Operations Adjustments.&#148; We
    have not made adjustments to give effect to the incremental
    selling, general and administrative expenses of approximately
    $3.0&#160;million that we expect to incur as a result of being a
    publicly traded partnership.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP<BR>
    <A name='302'> <!-- XBRL,bs --> <BR>
    Unaudited Pro Forma Consolidated Balance Sheet<BR>
    December&#160;31, 2009</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="62%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Adjustments for<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Offering<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oxford Resource<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Transactions<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Partners, LP</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Note 1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As Adjusted</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>ASSETS</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    93,729
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(a)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,000
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(a)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (90,729
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(a)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,366
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(b)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150,000
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(b)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,500
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(b)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (105,731
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(b)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 5pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Trade accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (22,403
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(b)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Inventory
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Advance royalties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,674
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,674
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Prepaid expenses and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    857
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(a)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,281
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 26pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,668
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,857
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Property, plant and equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Advance royalties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,438
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,438
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other long-term assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,796
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,143
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(a)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,302
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,637
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(c)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    203,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    209,726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 5pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
    <B>LIABILITIES</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Current portion of long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (846
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(a)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,267
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,655
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,655
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Asset retirement obligation&#160;&#151; current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Deferred revenue&#160;&#151; current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accrued taxes other than income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,464
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,464
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Accrued payroll and related expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,714
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,714
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 26pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,458
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (846
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,612
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91,598
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (89,883
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(a)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,444
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93,729
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(a)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,966
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,966
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Other long-term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    146,251
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    149,251
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 5pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Commitments and Contingencies</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 5pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
    <B>PARTNERS&#146; CAPITAL</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Limited Partners
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Common unitholders
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;units
    outstanding as of December&#160;31, 2009)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,840
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(b)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,761
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (102,030
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(b)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    136,500
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(b)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,604
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(c)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65,775
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(b)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Subordinated unitholders
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;units
    outstanding as of December&#160;31, 2009)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (65,775
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(b)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (65,775
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    General partner
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;units
    outstanding as of December&#160;31,&#160;2009)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,085
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,630
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(b)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,578
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(c)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total Oxford Resource Partners, LP partners&#146; capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total partners&#146; capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60,475
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total liabilities and partners&#146; capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    203,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    209,726
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See accompanying notes to unaudited pro forma consolidated
    financial statements.
</DIV>
<!-- /XBRL,bs -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP<BR>
    <A name='303'> <BR>
    <!-- XBRL,op -->Unaudited Pro Forma Consolidated Statement of
    Operations<BR>
    </A>Year Ended December&#160;31, 2009</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Adjustments for<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Offering<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oxford Resource<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Phoenix<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Adjustments<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Transactions<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pro Forma as<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Partners, LP</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Coal</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Note 2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Pro Forma</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Note 2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Adjusted</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="22" align="center" valign="bottom">
    <B>(in thousands)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Revenues</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Coal sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;254,171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    58,494
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,556
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(d)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;312,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;312,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,731
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(e)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Transportation revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,731
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(e)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Royalty and non-coal revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    293,844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,494
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    356,894
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    356,894
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Cost of coal sales (excluding DD&#038;A, shown separately)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,531
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,464
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(f)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    213,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    213,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,216
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(g)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15,031
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(e)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,000
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(h)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Cost of purchased coal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,487
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,305
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(e)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Cost of transportation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,731
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(e)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Depreciation, depletion and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (278
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(i)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,242
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,948
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,852
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(e)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,042
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (307
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(l)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,735
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Phoenix Coal selling expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,852
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,852
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(e)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Sales contract termination cost
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,000
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(h)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total costs and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76,131
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    337,925
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (307
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    337,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Income (loss) from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (17,637
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,581
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,969
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    307
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,276
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,484
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,601
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (156
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(j)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,241
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,900
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(m)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,341
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Other income (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(e)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Gain from purchase of business
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(k)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Net income (loss)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (20,255
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,590
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,207
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Less: net income attributable to noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,895
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,895
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,895
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Net income (loss) attributable to Oxford Resource Partners,
    LP unitholders</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;(20,255
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;3,207
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See accompanying notes to unaudited pro forma consolidated
    financial statements.
</DIV>
<!-- /XBRL,op -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


    <A name='304'><B><FONT style="font-family: 'Times New Roman', Times">Notes
    to Unaudited Pro Forma Consolidated Financial
    Statements</FONT></B></A>
</DIV>
</A>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">PRO FORMA
    CONSOLIDATED BALANCE SHEET ADJUSTMENTS</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Reflects adjustments relating to the repayment of our
    existing credit facility and the entry into our new credit
    facility based on an assumed December&#160;31, 2009 transaction
    date for the Offering Transactions. These adjustments are based
    on the following assumptions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the repayment of a total of $90.7&#160;million in debt
    outstanding under our existing credit facility;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    total borrowings of $93.7&#160;million under our new credit
    facility;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    total fees relating to our new credit facility of
    $3.0&#160;million, which amount will be capitalized.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Reflects adjustments for the Offering Transactions not
    discussed in Note (a)&#160;above, based on an assumed
    December&#160;31, 2009 transaction date for the Offering
    Transactions. These adjustments are based on the following
    assumptions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    the distribution of $3.4&#160;million in cash and
    $22.4&#160;million in accounts receivable to our General
    Partner, C&#038;T Coal, AIM Oxford and the participants in our
    LTIP, pro rata;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    gross proceeds of $150&#160;million from the issuance and sale
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    common units at an assumed initial offering price
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    per unit (the midpoint of the range set forth on the cover page
    of this prospectus);
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    estimated underwriting fees and commissions and offering
    expenses of $13.5&#160;million;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a total cash distribution of $105.7&#160;million to our General
    Partner, C&#038;T Coal, AIM Oxford and the participants in our
    LTIP, pro rata;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    replenishment of working capital with remaining cash proceeds of
    $30.8&#160;million.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Reflects adjustments to write off deferred financing
    costs of $1.6&#160;million that relate to our existing credit
    facility.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">PRO FORMA
    CONSOLIDATED STATEMENT OF OPERATIONS ADJUSTMENTS</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Reflects the benefit of amortization during the Stub
    Period of the below-market coal sales contracts that we acquired
    in the Phoenix Coal acquisition. The amount was calculated based
    on the amortization we recognized in the fourth quarter of 2009
    and the amount of coal shipped on these contracts during the
    Stub Period as compared to the fourth quarter of 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Reflects reclassifications to conform the statement of
    operations of Phoenix Coal to our basis of presentation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Reflects additional lease expense we would have
    incurred over the Stub Period as a result of our leasing, from a
    third party, equipment that was previously owned by Phoenix Coal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (g)&#160;Reflects the application of our accounting policy with
    regard to the capitalization threshold for major repairs to
    equipment. Phoenix Coal had expensed $1.2&#160;million of
    rebuilds of dozer undercarriages during the Stub Period. Our
    policy is to capitalize major rebuilds that extend the life of
    the asset and thus we have reduced cost of coal sales by
    $1.2&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (h)&#160;Reflects the reclassification of sales contract
    termination costs incurred by Phoenix Coal into cost of coal
    sales.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Reflects the net effect of the elimination of DD&#038;A
    expense attributable to the operations we purchased from Phoenix
    Coal and the addition of DD&#038;A expense we would have
    incurred based on a
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Unaudited Pro Forma Consolidated Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">PRO FORMA
    CONSOLIDATED STATEMENT OF OPERATIONS
    ADJUSTMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    January&#160;1, 2009 assumed acquisition date. Our net
    adjustment to DD&#038;A expense is a decrease of
    $0.3&#160;million and is attributable to the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    a decrease in our depletion expense due to lower fair market
    values assigned to coal reserves as compared to Phoenix
    Coal&#146;s carrying value, partially offset by
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;&#160;&#160;
</TD>
    <TD align="left">
    an increase in our depreciation expense due to higher fair
    market values assigned to equipment purchased as compared to
    Phoenix Coal&#146;s carrying value.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (j)&#160;As a result of the Phoenix Coal acquisition, interest
    expense increased $0.2&#160;million over the Stub Period. This
    increase would have been attributable to increased debt levels
    and higher interest rates applicable to our existing credit
    facility that we amended in connection with the acquisition. Our
    amortization of deferred financing expenses also increased over
    the Stub Period due to amendment fees paid to lenders as a
    result of the amendment to our existing credit facility. These
    items increased our interest expense by $2.8&#160;million, which
    was partially offset by the elimination of the historical
    interest expense of Phoenix Coal of $2.6&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (k)&#160;Reflects the elimination of Phoenix Coal&#146;s income
    taxes that we would not have incurred because of our status as a
    partnership that does not pay federal income taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (l)&#160;Reflects the elimination of advisory fees of
    $0.3&#160;million paid to affiliates of AIM Oxford that would
    not have been paid if we were a publicly traded partnership.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (m)&#160;Reflects a decrease in interest expense of
    $2.9&#160;million to reflect a lower effective interest rate
    associated with our new credit facility, partially offset by
    higher amortization of deferred financing cost associated with
    our new credit facility.
</DIV>
<!-- /XBRL,ns -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Report of
    Independent Registered Public Accounting Firm</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Board of Directors of Oxford Resources GP, LLC (which is
    the General Partner of Oxford Resource Partners, LP) and the
    General Partner and Limited Partners of Oxford Resource
    Partners, LP:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying consolidated balance sheets of
    Oxford Resource Partners, LP and subsidiaries (the
    &#147;Partnership&#148;) as of December&#160;31, 2009 and 2008,
    and the related consolidated statements of operations,
    partners&#146; capital and shareholders&#146; equity and cash
    flows of Oxford Resource Partners, LP and subsidiaries for the
    years ended December&#160;31, 2009 and 2008 and the period from
    August&#160;24, 2007 (inception) to December&#160;31, 2007 and
    of Oxford Mining Company and subsidiaries (the
    &#147;Predecessor&#148;) for the period from January&#160;1,
    2007 through August&#160;23, 2007. These financial statements
    are the responsibility of the Partnership&#146;s management. Our
    responsibility is to express an opinion on these financial
    statements based on our audits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. The Partnership is not required
    to have, nor were we engaged to perform an audit of its internal
    control over financial reporting. Our audit included
    consideration of internal control over financial reporting as a
    basis for designing audit procedures that are appropriate in the
    circumstances, but not for the purpose of expressing an opinion
    on the effectiveness of the Partnership&#146;s internal control
    over financial reporting. Accordingly, we express no such
    opinion. An audit also includes examining, on a test basis,
    evidence supporting the amounts and disclosures in the financial
    statements, and assessing the accounting principles used and
    significant estimates made by management, as well as evaluating
    the overall financial statement presentation. We believe that
    our audits provide a reasonable basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of Oxford Resource Partners, LP and subsidiaries as of
    December&#160;31, 2009 and 2008, and the results of operations
    and cash flows of Oxford Resource Partners, LP and subsidiaries
    for the years ended December&#160;31, 2009 and 2008, the period
    from August&#160;24, 2007 (inception) to December&#160;31, 2007
    and of the Predecessor for the period from January&#160;1, 2007
    through August&#160;23, 2007 in conformity with accounting
    principles generally accepted in the United States of America.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As discussed in Note&#160;2, the Partnership changed its method
    of accounting and reporting for noncontrolling interests in
    subsidiaries in 2009 for all periods presented due to the
    adoption of Statement of Financial Accounting Standards
    No.&#160;160, <I>Noncontrolling Interests in Consolidated
    Financial Statements</I>, codified in FASB ASC 810&#160;&#151;
    Consolidation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/ GRANT THORNTON LLP
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cleveland, Ohio
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    March&#160;24, 2010
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,bs -->CONSOLIDATED
    BALANCE SHEETS<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">(in
    thousands, except for unit information)</FONT></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="9" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>ASSETS</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Trade accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,528
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Inventory
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,801
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,134
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Advance royalties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,674
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,509
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Prepaid expenses and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,668
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,137
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Property, plant and equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    112,446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Advance royalties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,438
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,126
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other long-term assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,796
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,588
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    203,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    171,297
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="9">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="9" valign="bottom">
    <B>LIABILITIES</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Current portion of long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,535
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,655
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Asset retirement obligation&#160;&#151; current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,749
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Deferred revenue&#160;&#151; current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accrued taxes other than income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,464
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accrued payroll and related expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    326
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,714
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,458
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,991
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91,598
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81,442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,966
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other long-term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    146,251
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    135,976
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Commitments and Contingencies (Note&#160;17)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>PARTNERS&#146; CAPITAL</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Limited partners (6,570,369 and 5,889,484&#160;units outstanding
    as of December&#160;31, 2009 and 2008, respectively)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,371
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General partner (132,909 and 119,643&#160;units outstanding as
    of December&#160;31, 2009 and 2008, respectively)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,085
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    653
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total Oxford Resource Partners, LP partners&#146; capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,297
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total partners&#146; capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,321
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total liabilities and partners&#146; capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    203,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    171,297
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See accompanying notes to consolidated financial statements.
</DIV>
<!-- /XBRL,bs -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,op -->CONSOLIDATED
    STATEMENTS OF OPERATIONS<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">(in
    thousands, except for unit information)</FONT></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oxford Mining<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>Oxford Resource Partners, LP<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Company<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Successor)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Predecessor)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Years Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from August&#160;24<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from January&#160;1<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>to December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>to August&#160;23,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Revenues</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Coal sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    254,171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    193,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    61,324
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    96,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Transportation revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Royalty and non-coal revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,267
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    293,844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    230,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,935
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Costs and expenses</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of coal sales (excluding depreciation, depletion, and
    amortization, shown separately)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151,421
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,721
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,415
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of purchased coal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,487
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,925
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,494
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of transportation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,490
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,839
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,204
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation, depletion, and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling, general and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,242
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total costs and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    222,422
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Income (loss) from operations</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,502
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (511
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,484
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,720
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,498
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,386
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gain from purchase of business
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Net income (loss)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,871
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Less: net income attributable to noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,895
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,891
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (537
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (682
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Net income (loss) attributable to Oxford Resource Partners,
    LP unitholders</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,482
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,553
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income (loss) allocated to general partner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    467
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (50
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income (loss) allocated to limited partners
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,037
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,432
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Basic earnings per limited partner unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.44
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Diluted earnings per limited partner unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.44
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Weighted average number of limited partner units outstanding
    basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,061,072
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,554,395
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,900,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Weighted average number of limited partner units outstanding
    diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,084,508
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,554,395
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,901,956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Distributions paid per limited partner unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See accompanying notes to consolidated financial statements.
</DIV>
<!-- /XBRL,op -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    <BR>
    <!-- XBRL,se -->CONSOLIDATED STATEMENTS OF PARTNERS&#146;
    CAPITAL AND SHAREHOLDERS&#146; EQUITY<BR>
    Years ended December&#160;31, 2009 and 2008 and the periods from
    inception to December&#160;31, 2007 and from January&#160;1,
    2007 to August&#160;23, 2007<BR>
    (in thousands, except for unit information)</FONT></B>
</DIV>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Capital in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Retained<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Excess of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Earnings<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>In<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shareholders&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Noncontrolling<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 8pt">Predecessor</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Stock</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Par Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Deficit)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Treasury</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Equity</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Interest</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Equity</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balance at December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,252
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,077
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Proceeds from the sale of minority interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 25pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,553
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,553
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,871
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Shareholders&#146; distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,339
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,339
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (343
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,682
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balance at August&#160;23, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,640
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,077
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (11,671
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,319
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,352
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="41%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Limited<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Limited<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>General<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>General<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Partner<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Partners&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Partner<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Partner&#146;s<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Noncontrolling<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Partners&#146;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="font-size: 8pt">Successor</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Capital</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Capital</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>interest</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Capital</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balance at August&#160;24, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Partners&#146; contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,900,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,880
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,120
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,319
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,319
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Predecessor basis adjustment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (20,465
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (417
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (20,882
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    537
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Unit-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balance at December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,900,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    733
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,856
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    38,521
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 14pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Net income (loss)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,432
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,891
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    409
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Partners&#146; contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    962,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,780
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    220
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    982,143
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Partners&#146; distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,253
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (250
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,450
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,953
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Unit-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Issuance of units to LTIP participants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (124
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (124
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balance at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,889,484
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,371
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    119,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    653
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,009,127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,297
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,321
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 14pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,037
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    467
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,895
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,399
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Partners&#146; contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    650,029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,266
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    231
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    663,295
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Partners&#146; distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,141
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (266
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,125
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (19,532
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Unit-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 17pt">
    Issuance of units to LTIP participants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,883
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (108
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,883
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (108
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Balance at December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,570,396
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    53,960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    132,909
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,085
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,703,305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    57,112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See accompanying notes to consolidated financial statements.
</DIV>
<!-- /XBRL,se -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,cf -->CONSOLIDATED
    STATEMENTS OF CASH FLOWS<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">(in
    thousands)</FONT></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oxford Mining<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>Oxford Resource Partners, LP<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Company<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Successor)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Predecessor)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Years Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>August&#160;24 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>January&#160;1<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>to August&#160;23</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>CASH FLOWS FROM OPERATING ACTIVITIES:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,482
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,522
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,553
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Adjustments to reconcile net income (loss) to net cash provided
    by (used <BR>
    in) operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Depreciation, depletion, and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,902
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,025
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Interest rate swap adjustment to market
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,681
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Loan fee amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    530
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    131
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    148
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Loss on debt extinguishment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,252
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Non-cash compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Advanced royalty recoupment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,390
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,020
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    261
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Loss (gain) on disposal of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,177
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,407
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    (Gain) on acquisition
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,823
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Noncontrolling interest in subsidiary earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,895
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,891
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    537
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    (Increase) decrease in assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,875
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,906
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    834
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,785
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Inventory
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,062
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (479
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    358
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (847
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,807
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (494
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,368
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (167
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 21pt">
    Increase (decrease) in liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Accounts payable and other liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,720
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,347
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Asset retirement obligation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,094
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,509
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (454
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,178
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 28pt">
    Provision for below-market contracts and deferred revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,840
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,001
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (103
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 35pt">
    Net cash provided by (used in) operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,478
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>CASH FLOWS FROM INVESTING ACTIVITIES:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Phoenix Coal acquisition
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18,275
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Purchase of mineral rights and land
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,049
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (284
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (24,560
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,919
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Purchase of producing mines
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,346
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,476
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (312
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,285
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Royalty advances
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (679
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (858
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (88
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,201
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Purchase of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (24,850
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25,188
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (77,155
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,305
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Proceeds from sale of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,972
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Change in restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (67
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,221
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Payments received&#160;&#151; notes receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 35pt">
    Net cash used in investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (51,115
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23,901
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (103,336
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,619
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>CASH FLOWS FROM FINANCING ACTIVITIES:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Proceeds from borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,810
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Payments on borrowings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,576
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,853
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (175
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,964
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Capital contributions from partners
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Proceeds from sale of minority interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Net advances (payments) on line of credit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (500
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Distributions to noncontrolling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,125
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,450
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (343
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Distributions to partners
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,407
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,503
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 14pt">
    Payments to shareholders of predecessor
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (339
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 35pt">
    Net cash provided by (used in) financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,762
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,494
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,274
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (234
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 35pt">
    Net increase/(decrease) in cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,813
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,544
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (540
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>CASH AND CASH EQUIVALENTS, beginning of period</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    394
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <B>CASH AND CASH EQUIVALENTS, end of period</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 8pt">See accompanying notes to
    consolidated financial statements.
    </FONT>
</DIV>
<!-- /XBRL,cf -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL,ns -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    NOTES&#160;TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B>
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;1:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ORGANIZATION
    AND PRESENTATION</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Significant
    Relationships Referenced in Notes to Consolidated Financial
    Statements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#147;We,&#148; &#147;us,&#148; &#147;our,&#148;
    &#147;Successor&#148; or the &#147;Partnership&#148; means the
    business and operations of Oxford Resource Partners, LP, the
    parent entity, as well as its consolidated subsidiaries.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    &#147;ORLP&#148; means Oxford Resource Partners, LP,
    individually as the parent entity, and not on a consolidated
    basis.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our &#147;GP&#148; means Oxford Resources GP, LLC, the general
    partner of Oxford Resource Partners, LP.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Organization</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a low cost producer of high value steam coal. We focus on
    acquiring steam coal reserves that we can efficiently mine with
    our modern, large scale equipment. Our reserves and operations
    are strategically located in Northern Appalachia and the
    Illinois Basin to serve our primary market area of Illinois,
    Indiana, Kentucky, Ohio, Pennsylvania and West Virginia. These
    coal reserves are mined by our subsidiaries, Oxford Mining
    Company, LLC (&#147;Oxford Mining&#148;), Oxford Mining
    Company-Kentucky, LLC and Harrison Resources, LLC
    (&#147;Harrison Resources&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are managed by our GP and all executives, officers and
    employees who provide services to us are employees of our GP.
    Charles Ungurean, the President and Chief Executive Officer of
    our GP and a member of our GP&#146;s board of directors, and
    Thomas Ungurean, the Senior Vice President, Equipment,
    Procurement and Maintenance of our GP, are the co-owners of
    C&#038;T Coal, Inc. (&#147;C&#038;T Coal&#148;). Prior to our
    acquisition of Oxford, C&#038;T Coal owned 100% of the
    outstanding ownership interest in Oxford Mining Company
    (&#147;Predecessor&#148; or &#147;Oxford&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were formed in August&#160;2007 to acquire all of the
    ownership interests in Oxford. On August&#160;24, 2007, AIM
    Oxford Holdings, LLC (&#147;AIM Oxford&#148;) contributed total
    consideration to us of $36.4&#160;million in cash, and C&#038;T
    Coal contributed 100% of its ownership interest in Oxford to us
    for a distribution of $20.4&#160;million in cash and
    $16.0&#160;million of working capital which was distributed
    prior to this transaction and therefore is not reflected in the
    table below. Contemporaneously, we entered into a credit
    facility and the initial borrowings were used to pay in full
    Oxford&#146;s existing debt and to pay transaction cost and
    replenish working capital. The transaction costs were
    $9.0&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchase consideration was comprised of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="86%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    AIM Oxford capital contributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36,400,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term bank borrowing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revolver borrowing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,990,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deemed value of C&#038;T Coal&#146;s retained interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,600,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Subtotal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128,990,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cash on hand
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,034,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Distribution to C&#038;T Coal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,400,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net purchase consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    107,556,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At that time, C&#038;T Coal and AIM Oxford held a 34.3% and
    63.7% limited partner interest in ORLP, respectively, and our GP
    owned a 2% general partner interest. Also at that time, the
    members of our GP were AIM Oxford with a 65% ownership interest
    and C&#038;T Coal with a 35% ownership interest. After taking
    into
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;1:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ORGANIZATION
    AND PRESENTATION&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    account their indirect ownership of ORLP through our GP, AIM
    Oxford held a 65% total interest in ORLP and C&#038;T Coal held
    a 35% total interest in ORLP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The acquisition of Oxford was accounted for under the purchase
    method of accounting as prescribed by Statement of Financial
    Accounting Standards (&#147;SFAS&#148;) 141, <I>Business
    Combinations, </I>and we have included all operating assets and
    liabilities of Oxford except for bank debt that was paid in full
    as part of the transaction. The purchase price was allocated to
    the assets acquired and liabilities assumed based on their
    estimated fair values at the transaction date. The estimated
    fair values of long-lived tangible and intangible assets were
    determined primarily through third-party appraisals. Due to
    C&#038;T Coal&#146;s limited partner interest in the Partnership
    and its ownership interest in our GP, the purchase accounting
    fair value adjustments are limited to the newly acquired 65%
    total interest purchased by AIM Oxford pursuant to Emerging
    Issues Task Force Abstract (&#147;EITF&#148;)
    <FONT style="white-space: nowrap">88-16,</FONT>
    <I>Basis in Leveraged Buyout Transactions</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the fair values of the assets
    acquired and liabilities assumed as of the date of acquisition:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net working capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,195,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    77,617,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Intangibles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,976,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mineral rights
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,730,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Coal sales contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,726,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,764,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    107,556,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subsequent to our formation, AIM Oxford and C&#038;T Coal made
    several capital contributions for various purposes including
    purchasing property, plant and equipment and acquiring the
    surface mining operations of Phoenix Coal Corporation
    (&#147;Phoenix Coal&#148;). See Note&#160;3. The capital
    contributions were not all in direct proportion to AIM
    Oxford&#146;s and C&#038;T Coal&#146;s initial limited partner
    interests in us. As a result of the disproportionate capital
    contributions, AIM Oxford&#146;s and C&#038;T Coal&#146;s
    ownership of the Partnership, as of December&#160;31, 2009, is
    64.39% and 32.77%, respectively, with 1.98% and 0.86% interests
    being owned by our GP and participants in the Partnership&#146;s
    Long-Term Incentive Plan (&#147;LTIP&#148;), respectively. AIM
    Oxford and C&#038;T Coal own 66.27% and 33.73%, respectively, in
    the&#160;GP.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Basis
    of Presentation and Principles of Consolidation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The accompanying consolidated financial statements include the
    accounts and operations of the Partnership and its consolidated
    subsidiaries and are prepared in conformity with accounting
    principles generally accepted in the United States of America
    (&#147;US GAAP&#148;). We have included the accounts of our
    Predecessor and its subsidiaries for the eight month period
    ended August&#160;23, 2007 in the consolidated statements of
    operations, cash flows and shareholders&#146; equity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We own a 51% interest in Harrison Resources and are therefore
    deemed to have control. As a result, we consolidate all of
    Harrison Resources&#146; accounts with all material intercompany
    transactions and balances being eliminated in our consolidated
    financial statements. The 49% portion of Harrison Resources that
    we do not own is reflected as &#147;Noncontrolling
    interest&#148; in the consolidated balance sheet. See
    Note&#160;16.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;2:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Use of
    Estimates</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to prepare financial statements in conformity with US
    GAAP, we are required to make estimates and assumptions that
    affect the reported amounts of assets and liabilities and the
    disclosures of contingent assets and liabilities (if any) at the
    date of the financial statements and the reported amounts of
    revenue and expenses during the reporting period. The most
    significant areas requiring the use of management estimates and
    assumptions relate to
    <FONT style="white-space: nowrap">units-of-production</FONT>
    amortization calculations, asset retirement obligations, useful
    lives for depreciation of fixed assets and estimates of fair
    values for asset impairment purposes. The estimates and
    assumptions that we use are based upon our evaluation of the
    relevant facts and circumstances as of the date of the financial
    statements. Actual results could ultimately differ from those
    estimates.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cash
    and Cash Equivalents</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cash and cash equivalents consist of all unrestricted cash
    balances and highly liquid investments that have an original
    maturity of three months or less. Financial instruments and
    related items, which potentially subject us to concentrations of
    credit risk, consist primarily of cash, cash equivalents and
    trade receivables. We place our cash and temporary cash
    investments with high credit quality institutions. At times,
    such investments may be in excess of the FDIC insurance limit.
    We have not experienced any losses in such accounts and believe
    we are not exposed to any significant credit risk relating to
    our cash and cash equivalents.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Restricted
    Cash</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We had restricted cash and cash equivalents related to Harrison
    Resources of $1,877,000 and $1,873,000 at December&#160;31, 2009
    and 2008, respectively, which are included in the balance sheet
    caption &#147;Other long-term assets&#148; due to their
    anticipated release from restriction. Harrison Resources&#146;
    cash, which is deemed to be restricted due to the limitations of
    its use for Harrison Resources&#146; operations, primarily
    relates to funds set aside for future reclamation obligations.
    See Note&#160;16.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Allowance
    for Doubtful Accounts</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We establish an allowance for losses on trade receivables when
    it is probable that all or part of the outstanding balance will
    not be collected. Our management regularly reviews the
    probability that a receivable will be collected and establishes
    or adjusts the allowance as necessary. There was no allowance
    for doubtful accounts at December&#160;31, 2009 and 2008.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Inventory</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Inventory consists of coal that has been completely uncovered or
    that has been removed from the pit and stockpiled for crushing,
    washing, or shipment to customers. Inventory also consists of
    supplies, spare parts and fuel. Inventory is valued at the lower
    of average cost or market. The cost of coal inventory includes
    certain operating expenses and operating overhead.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Property,
    Plant and Equipment</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property, plant and equipment are recorded at cost. Expenditures
    that extend the useful lives of existing plant and equipment are
    capitalized. Maintenance and repairs that do not extend the
    useful life or increase productivity are charged to operating
    expense as incurred. Exploration expenditures are charged to
    operating expense as incurred, including costs related to
    locating coal deposits and drilling and evaluation costs
    incurred
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;2:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    to assess the economic viability of such deposits. Plant and
    equipment are depreciated principally on the straight-line
    method over the estimated useful lives of the assets based on
    the following schedule:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="86%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang2 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Buildings and tipple
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25 - 39&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Machinery and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7 - 12&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vehicles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5 - 7&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture and fixtures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3 - 7&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Railroad siding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7&#160;years
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We acquire our reserves through purchases or leases of coal
    reserves. Coal reserves are recorded at fair value under
    purchase accounting at our formation date of August&#160;24,
    2007 or as part of the Phoenix Coal acquisition. See
    Note&#160;3. We deplete our reserves using the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    method, without residual value, on the basis of tonnage mined in
    relation to estimated recoverable tonnage. At December&#160;31,
    2009 and 2008, all of our reserves were attributed to mine
    complexes engaged in mining operations or leased to third
    parties. We believe that the carrying value of these reserves
    will be recovered. Residual surface values are classified as
    land and not depleted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Exploration expenditures are charged to operating expense as
    incurred, including costs related to locating coal deposits and
    drilling and evaluation costs incurred to assess the economic
    viability of such deposits. Once the economic viability of such
    deposits is established, future expenditures are classified as
    mine development costs and are capitalized until production
    commences. Amortization of these mine development costs is
    initiated when the mine begins production using the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    method based upon the estimated recoverable tonnage.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Financial
    Instruments and Derivative Financial Instruments</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our financial instruments include cash and cash equivalents,
    accounts receivable, accounts payable, fixed rate debt, variable
    rate debt, an interest rate swap agreement and an interest rate
    cap agreement. We do not hold or issue financial instruments or
    derivative financial instruments for trading purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We used an interest rate swap agreement to partially reduce
    risks related to floating rate financing agreements that are
    subject to changes in the market rate of interest. Terms of the
    interest rate swap agreement required us to receive a variable
    interest rate and pay a fixed interest rate. Our interest rate
    swap agreement and its variable rate financings were based upon
    the three-month London Interbank Offered Rate
    (&#147;LIBOR&#148;). We currently have an interest rate cap
    agreement that sets an upper limit on LIBOR that we would have
    to pay under the terms of our existing credit facility. We did
    not elect hedge accounting for either agreement and so changes
    in market value on these derivatives are included in interest
    expense on the consolidated statements of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We measure our derivatives (interest rate swap agreement or
    interest rate cap agreement) at fair value on a recurring basis
    using significant observable inputs, which are Level&#160;2
    inputs as defined in the fair value hierarchy. See Note&#160;12.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our risk management policy is to purchase up to 75% of our
    diesel fuel gallons on fixed price forward contracts. These
    contracts meet the normal purchases and sales exclusion and
    therefore are not accounted for as derivatives. We take physical
    delivery of all the fuel under these forward contracts and such
    contracts have a term of one year or less.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;2:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Advance
    Royalties</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A substantial portion of our reserves are leased. Advance
    royalties are advance payments made to lessors under terms of
    mineral lease agreements that are recoupable through a reduction
    in royalties payable on future production. Amortization of
    leased coal interests is computed using the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    method over estimated recoverable tonnage.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Long-Lived
    Assets</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We follow authoritative guidance that requires projected future
    cash flows from use and disposition of assets to be compared
    with the carrying amounts of those assets when impairment
    indicators are present. When the sum of projected cash flows is
    less than the carrying amount, impairment losses are indicated.
    If the fair value of the assets is less than the carrying amount
    of the assets, an impairment loss is recognized. In determining
    such impairment losses, discounted cash flows or asset
    appraisals are utilized to determine the fair value of the
    assets being evaluated. Also, in certain situations, expected
    mine lives are shortened because of changes to planned
    operations. When that occurs and it is determined that the
    mine&#146;s underlying costs are not recoverable in the future,
    reclamation and mine closure obligations are accelerated. To the
    extent it is determined that an asset&#146;s carrying value will
    not be recoverable during a shorter mine life, the asset is
    written down to its recoverable value. No impairment losses were
    recognized during any of the years or periods presented.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Identifiable
    Intangible Assets and Liabilities</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Identifiable intangible assets are recorded in other assets in
    the accompanying consolidated balance sheets. We capitalize
    costs incurred in connection with borrowings or the
    establishment of credit facilities. These costs are amortized as
    an adjustment to interest expense over the life of the
    borrowings or term of the credit facility using the interest
    method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also have recorded intangible assets and liabilities at fair
    value associated with certain customer relationships and
    below-market coal sales contracts, respectively. These balances
    arose from the use of purchase accounting for business
    combinations and so the assets and liabilities were adjusted to
    fair value. These intangible assets are being amortized over
    their expected useful lives. See the &#147;Coal Sales
    Contracts&#148; section of Note&#160;2 and Note&#160;7 for
    further details.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Asset
    Retirement Obligation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our asset retirement obligations, or AROs, arise from the
    Surface Mining Control and Reclamation Act of 1977 (SMCRA) and
    similar state statutes, which require that mine property be
    restored in accordance with specified standards and an approved
    reclamation plan. Our AROs are recorded initially at fair value.
    It has been our practice, and we anticipate that it will
    continue to be our practice, to perform a substantial portion of
    the reclamation work using internal resources. Hence the
    estimated costs used in determining the carrying amount of our
    AROs may exceed the amounts that are eventually paid for
    reclamation costs if the reclamation work was performed using
    internal resources.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To determine the fair value of our AROs, we calculate on a mine
    by mine basis the present value of estimated reclamation cash
    flows. This process requires us to estimate the current
    disturbed acreage subject to reclamation, estimates of future
    reclamation costs and assumptions regarding the mine&#146;s
    productivity. These cash flows are discounted at the
    credit-adjusted, risk free interest rate based on
    U.S.&#160;Treasury bonds with a maturity similar to the expected
    lives of our mines.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;2:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the liability is initially recorded for the costs to open a
    new mine site, the offset is recorded to the producing mine
    asset. Over time, the ARO liability is accreted to its present
    value, and the capitalized cost is depreciated over the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    for the related mine. The liability is also increased as
    additional land is disturbed during the mining process. The
    timeline between digging the mining pit and extracting the coal
    is relatively short; therefore, much of the liability created
    for active mining is expensed within a month or so of
    establishment because the related coal has been extracted. If
    the assumptions used to estimate the ARO do not materialize as
    expected or regulatory changes occur, reclamation costs or
    obligations to perform reclamation and mine closure activities
    could be materially different than currently estimated. We
    review our entire reclamation liability at least annually and
    make necessary adjustments for permit changes as granted by
    state authorities, additional costs resulting from revisions to
    cost estimates and the quantity of disturbed acreage during the
    current year. At December&#160;31, 2009, we had recorded ARO
    liabilities of $13.3&#160;million, including amounts reported as
    current liabilities. On an aggregate undiscounted basis, we
    estimate the cost of final mine closure to be approximately
    $15.5&#160;million.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to being contributed to us in August 2007, Oxford elected
    to be recognized as an &#147;S&#148; Corporation under the
    provisions of the Internal Revenue Code, which provides that, in
    lieu of federal and state income taxes, the shareholders were
    taxed on their proportionate share of Oxford&#146;s income,
    deductions, losses and credits. Therefore, no provision or
    liability for federal or state income taxes was presented in
    Oxford&#146;s financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a partnership, we are not a taxable entity for federal or
    state income tax purposes; the tax effect of our activities
    passes through to our unitholders. Therefore, no provision or
    liability for federal or state income taxes is included in our
    financial statements. Net income for financial statement
    purposes may differ significantly from taxable income reportable
    to our unitholders as a result of timing or permanent
    differences between financial reporting under US GAAP and the
    regulations promulgated by the Internal Revenue Service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Authoritative accounting guidance on accounting for uncertainty
    in income taxes establishes the criterion that an individual tax
    position is required to meet for some or all of the benefits of
    that position to be recognized in our financial statements. On
    initial application, the uncertain tax position guidance has
    been applied to all tax positions for which the statute of
    limitations remains open. Only tax positions that meet the
    more-likely-than-not recognition threshold at the adoption date
    are recognized or will continue to be recognized.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenue
    Recognition</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Revenue from coal sales is recognized and recorded when shipment
    or delivery to the customer has occurred, prices are fixed or
    determinable and the title or risk of loss has passed in
    accordance with the terms of the sales contract. Under the
    typical terms of these contracts, risk of loss transfers to the
    customers at the mine or port, when the coal is loaded on the
    rail, barge, or truck.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;29, 2008, we executed and received a
    prepayment from one of our customers of $13,250,000 toward its
    future coal deliveries in 2009. This amount was classified as
    deferred revenue and recognized as revenue as we delivered the
    coal in accordance with the terms of the arrangement. As of
    December&#160;31, 2009, $2,090,000 of the prepayment remains on
    our balance sheet as deferred revenue. We expect this balance
    will be fully recognized as revenue in 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Freight and handling costs paid to third-party carriers and
    invoiced to customers are recorded as cost of transportation and
    transportation revenue, respectively.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;2:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Royalty and non-coal revenue consists of coal royalty income,
    service fees for providing landfill earth moving services,
    commissions that we receive from a third party who sells
    limestone that we recover during our coal mining process,
    service fees for operating a coal unloading facility and fees
    that we receive for trucking ash for two municipal utility
    customers. Revenues are recognized when earned or when services
    are performed. Royalty revenue relates to the overriding royalty
    we receive on our underground coal reserves that we sublease to
    a third party mining company. Prior to June 2008, we did not
    receive any royalties because we had purchased the output of
    this mine thus no royalty was due to us. Starting in June 2008,
    our sublessee began selling the coal production for its own
    account which entitled us to start receiving royalty revenue.
    For the years ended 2009 and 2008, we received royalties of
    $4,513,000 and $1,289,000, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Coal
    Sales Contracts</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our below-market coal sales contracts were acquired through the
    Phoenix Coal acquisition and in connection with our acquisition
    of Oxford in 2007 for which the prevailing market price for coal
    specified in the agreement was in excess of the agreement price.
    The fair value was based on discounted cash flows resulting from
    the difference between the below-market agreement price and the
    prevailing market price at the date of acquisition. The
    difference between the below-market agreements cash flows and
    the cash flows at the prevailing market price is amortized into
    coal sales on the basis of tons shipped over the term of the
    respective contract.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Unit-Based
    Compensation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We account for unit-based awards in accordance with applicable
    guidance, which establishes standards of accounting for
    transactions in which an entity exchanges its equity instruments
    for goods or services. Unit-based compensation expense is
    recorded based upon the fair value of the award at grant date.
    Such costs are recognized as expense on a straight-line basis
    over the corresponding vesting period. The fair value of our
    LTIP units is determined based on the sale price of our limited
    partner units in arm&#146;s-length transactions. The unit price
    fair value was increased in September 2009 in connection with
    the Phoenix Coal acquisition where additional units were
    purchased by C&#038;T Coal and AIM Oxford disproportionately to
    their respective ownership interests to help fund the
    acquisition. This resulted in C&#038;T Coal&#146;s previous
    ownership interest being diluted. We verified the reasonableness
    of the new valuation of our units using traditional valuation
    techniques for publicly traded partnerships. See Note&#160;13.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Earnings
    Per Unit</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of our earnings per unit calculation, we have
    applied the two class method. The classes of units are our
    limited partner and general partner units. All outstanding units
    share prorata in income allocations and distributions and our
    general partner has sole voting rights. Limited partner units
    have been separated into Class&#160;A and Class&#160;B to
    prepare for a potential transaction such as an initial public
    offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Limited Partner Units:&#160;&#160;Basic earnings per unit are
    computed by dividing net income attributable to limited partners
    by the weighted average units outstanding during the reporting
    period. Diluted earnings per unit are computed similar to basic
    earnings per unit except that the weighted average units
    outstanding and net income attributable to limited partners are
    increased to include phantom units that have not yet vested and
    that will convert to LTIP units upon vesting. In years of a
    loss, the phantom units are not included in the earnings per
    unit calculation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    General Partner Units:&#160;&#160;Basic earnings per unit are
    computed by dividing net income attributable to our GP by the
    weighted average units outstanding during the reporting period.
    Diluted earnings per unit for our GP are computed similar to
    basic earnings per unit except that the net income attributable
    to the general partner units is adjusted for the dilutive impact
    of the phantom units.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;2:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The computation of basic and diluted earnings per unit under the
    two-class method for limited partner units and general partner
    units is presented below:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Oxford Resource Partners, LP</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>August&#160;24 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>(in thousands except unit amounts)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Limited partner units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Average units outstanding:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,061,072
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,554,395
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,900,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Effect of unit-based awards
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,436
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    n/a
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,084,508
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,554,395
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,901,956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income attributable to limited partners
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,037
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (2,432
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,038
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,432
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Earnings per limited partner unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.44
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.44
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General partner units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Average units outstanding:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic and diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    123,023
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113,241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net income attributable to general partner
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    467
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (50
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (50
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Earnings per general partner unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (0.44
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.44
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">New
    Accounting Standards Issued and Adopted</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the FASB issued a new standard establishing the
    FASB Accounting Standards Codification
    (&#147;Codification&#148;) as the sole source of authoritative
    generally accepted accounting principles. The Codification
    reorganized existing U.S.&#160;accounting and reporting
    standards issued by the FASB and other related private sector
    standard setters into a single source of authoritative
    accounting principles arranged by topic. The Codification
    supersedes all existing U.S.&#160;accounting standards; all
    other accounting literature not included in the Codification
    (other than Securities and Exchange Commission guidance for
    publicly traded companies) is considered non-authoritative. This
    standard is effective for interim and annual reporting periods
    ending after September&#160;15, 2009. The Codification does not
    change existing US GAAP.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, the FASB issued Accounting Standards Update
    (&#147;ASU&#148;)
    <FONT style="white-space: nowrap">2009-06,</FONT>
    Implementation Guidance on Accounting for Uncertainty in Income
    Taxes and Disclosure Amendments for Nonpublic Entities. This
    update addresses the need for additional implementation guidance
    on accounting for uncertainty in income taxes for all entities.
    The update clarifies that an entity&#146;s tax status as a pass
    through or tax-exempt
    <FONT style="white-space: nowrap">not-for-profit</FONT>
    entity is a tax position subject to recognition requirements of
    the standard and therefore must use the recognition and
    measurement guidance when assessing their tax positions. The ASU
    <FONT style="white-space: nowrap">2009-06</FONT>
    updates are effective for interim and annual periods ending
    after September&#160;15, 2009. The adoption of the guidance in
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;2:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    ASU <FONT style="white-space: nowrap">2009-06</FONT>
    during the third quarter of 2009 did not have a material impact
    on our consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In May 2009, the FASB issued new guidance for accounting for
    subsequent events that established the accounting for and
    disclosure of events that occur subsequent to the balance sheet
    date but before financial statements are issued or are available
    to be issued. The standard provides guidance on
    management&#146;s assessment of subsequent events and
    incorporates this guidance into accounting literature. The
    standard is effective prospectively for interim and annual
    periods ending after June&#160;15, 2009. We adopted this
    standard for the year ended December&#160;31, 2009 and the
    adoption did not impact our consolidated financial statements.
    See Note&#160;22.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the FASB issued revised guidance on business
    combinations. This new guidance establishes principles and
    requirements for the acquirer of a business to recognize and
    measure in its financial statements. This amendment applies to
    all business combinations and establishes guidance for
    recognizing and measuring identifiable assets, liabilities,
    noncontrolling interests in the acquiree and goodwill. Most of
    these items are recognized at their full fair value on the
    acquisition date, including acquisitions where the acquirer
    obtains control but less than 100% ownership in the acquiree.
    The amendment also requires expensing acquisition-related costs
    as incurred and establish disclosure requirements to enable the
    evaluation of the nature and financial effects of the business
    combination. This guidance is effective for business
    combinations with an acquisition date in fiscal years beginning
    after December&#160;15, 2008. We have recorded the acquisition
    of the surface coal mining assets of Phoenix Coal dated
    September&#160;30, 2009 under this revised guidance. See
    Note&#160;3. The impact of adoption was to expense $379,000 of
    previously capitalized acquisition costs as of January&#160;1,
    2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In December 2007, the FASB issued new guidance on the accounting
    for noncontrolling ownership interests in a subsidiary and for
    the deconsolidation of a subsidiary. The guidance requires that
    noncontrolling ownership interests in consolidated subsidiaries
    be presented in the consolidated balance sheet within
    partners&#146; capital as a separate component from the
    parent&#146;s equity as opposed to mezzanine equity.
    Consolidated net income will now be disclosed as the amount
    attributable to both the parent and the noncontrolling
    interests. The guidance also provides for changes in the
    parent&#146;s ownership interest in a subsidiary, including
    transactions where control is retained and where control is
    relinquished; it also requires expanded disclosures in the
    consolidated financial statements that clearly identify and
    distinguish between the interests of the parent owners and the
    interests of the noncontrolling owners of a subsidiary. This
    guidance requires retrospective application to all periods
    presented, as included in our consolidated financial statements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">New
    Accounting Standards Issued and Not Yet Adopted</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In August 2009, the FASB issued ASU
    <FONT style="white-space: nowrap">2009-05,</FONT>
    Measuring Liabilities at Fair Value. The amendment provides
    clarification that in circumstances in which a quoted price in
    an active market for the identical liability is not available, a
    reporting entity is required to measure fair value using one or
    more of the alternative valuation methods outlined in the
    guidance. It also clarifies that restrictions preventing the
    transfer of a liability should not be considered as a separate
    input or adjustment in the measurement of its fair value. This
    amendment was effective as of the beginning of interim and
    annual reporting periods that begin after August&#160;27, 2009.
    The adoption of this guidance did not impact our consolidated
    financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the FASB amended guidance for the consolidation of
    a variable interest entity (&#147;VIE&#148;). This guidance
    updated the determination of whether an enterprise is the
    primary beneficiary of a VIE, and is, therefore, required to
    consolidate an entity, by requiring a qualitative analysis
    rather than a quantitative analysis. This standard also requires
    continuous reassessments of whether an enterprise is the primary
    beneficiary of a VIE. Previously, reconsideration was required
    only when specific events had occurred. This
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;2:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    guidance also requires enhanced disclosure about an
    enterprise&#146;s involvement with a VIE. The provisions of
    these updates are effective as of the beginning of interim and
    annual reporting periods that begin after November&#160;15,
    2009. We do not believe that this standard will have a material
    impact on our consolidated financial statements.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;3:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ACQUISITION</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;30, 2009, we acquired 100% of the active
    western Kentucky surface mining coal operations of Phoenix Coal.
    This acquisition provided us an entry into the Illinois Basin
    and consisted of four active surface coal mines and coal
    reserves of 20&#160;million tons, as well as mineral rights,
    working capital and various coal sales and purchase contracts.
    The application of purchase accounting requires that the total
    purchase price be allocated to the fair value of assets acquired
    and liabilities assumed based on the fair values of the assets
    and the liabilities at the acquisition date. The following table
    summarizes the fair values of the assets acquired and the
    liabilities assumed at the date of acquisition:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="86%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net working capital
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,594,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mineral rights and land
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,264,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property, plant and equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,519,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    404,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Coal sales contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,600,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,083,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net assets acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,098,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchase price of $18,275,000 was less than the fair value
    of the net assets acquired of $22,098,000, and as a result we
    recorded a gain of $3,823,000 included in other operating income
    in the consolidated statements of operations for the year ended
    December&#160;31, 2009. Phoenix Coal&#146;s surface coal mining
    operations had previously operated at a loss and its management
    and board of directors elected to exit the surface mining
    business to focus on maximizing the value of its underground
    reserves.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of the acquisition agreement, we agreed to make
    additional payments of up to $1,000,000 in two installments to
    Phoenix Coal if Phoenix Coal secured specific surface and
    mineral rights by certain dates, the last of which will expire
    on June&#160;30, 2010. During the fourth quarter of 2009, we
    paid $500,000 to Phoenix Coal for obtaining the surface rights
    pertaining to certain coal leases. The remaining $500,000
    contingent payment was paid to Phoenix Coal in January 2010 for
    obtaining the mineral rights and is discussed further in our
    subsequent events Note&#160;22. At the closing date, we
    concluded that the fair value of the contingent liability was
    $1,000,000 as the payment was deemed probable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also assumed a contract with a third party to pay a
    contingent fee if the third party was able to arrange to lease
    or purchase, on our behalf, a specified amount of coal reserves
    by July&#160;31, 2010. The contract called for a payment of
    $1,000,000; however, we concluded that the fair value of the
    contingent liability was $625,000 using a probability weighted
    average of the likely outcomes. That amount was recorded as a
    liability with a corresponding asset in the consolidated balance
    sheet under the caption of &#147;Property, plant and equipment,
    net.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the fourth quarter of 2009, our surface coal mine operations
    that we acquired from Phoenix Coal reported total revenue of
    $22.5&#160;million and a net loss from operations of
    approximately $1.9&#160;million. As a result of recording a gain
    of $3.8&#160;million relating to the acquisition, the net income
    of these operations for the quarter was approximately
    $1.9&#160;million, excluding general and administrative overhead
    expenses which are not allocated among subsidiaries.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;3:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ACQUISITION&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following unaudited pro forma financial information reflects
    the consolidated results of operations as if the Phoenix Coal
    acquisition had occurred at the beginning of each year presented
    below. The pro forma information includes adjustments primarily
    for depreciation, depletion and amortization based upon fair
    values of property, plant and equipment and mineral rights, the
    lease of $11.1&#160;million of equipment, and interest expense
    for acquisition debt and additional capital contributions. The
    pro forma financial information is not necessarily indicative of
    results that actually would have occurred if we had assumed
    operation of these assets on the date indicated nor is it
    indicative of future results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>Pro Forma Results<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>for the Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31,</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>(Unaudited)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    356,894,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    313,118,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,695,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (20,555,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;4:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">INVENTORY</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Inventory consisted of the following at December 31:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Coal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,759,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,462,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fuel
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,264,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,053,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Supplies and spare parts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,778,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,619,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,801,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,134,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;5:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">PROPERTY,
    PLANT AND EQUIPMENT, NET</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property, plant and equipment, net of accumulated depreciation,
    depletion and amortization consisted of the following at
    December 31:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property, plant and equipment&#160;&#151; gross
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Land
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,374,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,475,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Coal reserves
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,905,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,597,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Land and mineral rights
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,279,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,072,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Buildings and tipple
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,025,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,375,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Machinery and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133,667,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    93,908,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vehicles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,913,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,005,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture and fixtures
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    690,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    594,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Railroad sidings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    160,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    160,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Producing mines
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,606,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,712,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total property, plant and equipment, gross
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    192,340,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    131,826,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less: accumulated depreciation, depletion and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,879,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,380,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total property, plant and equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    149,461,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,446,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;5:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">PROPERTY,
    PLANT AND EQUIPMENT, NET&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amounts of depreciation expense related to owned and leased
    fixed assets, depletion expense related to owned and leased coal
    reserves, and amortization expense related to producing mines
    for the respective years are set forth below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Oxford Mining<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>Oxford Resource Partners, LP<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Company<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Successor)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Predecessor)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>January&#160;1,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Inception to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007 to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>For the Years Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>August&#160;23,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expense Type:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,632,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,455,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,404,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,827,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depletion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,672,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,226,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,030,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    216,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,200,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,533,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    318,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    982,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;6:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">OPERATING
    LEASES</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We lease certain equipment under non-cancelable lease agreements
    that expire on various dates through 2014. Generally the lease
    agreements are for a period of four years. As of
    December&#160;31, 2009, aggregate lease payments that are
    required under operating leases that have initial or remaining
    non-cancelable lease terms in excess of one year are set forth
    below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    For the years ending December&#160;31, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,289,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,014,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,429,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,570,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2014
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    123,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the years ended December&#160;31, 2009 and 2008, the period
    from inception to December&#160;31, 2007 and the Predecessor
    period from January&#160;1, 2007 to August&#160;23, 2007, we
    incurred lease expenses of approximately $5,428,000, $2,267,000,
    $260,000 and $1,775,000, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also entered into various coal reserve lease agreements under
    which future royalty payments are due based on production. Such
    payments are capitalized as advance royalties at the time of
    payment, and amortized into royalty expense based on the stated
    recoupment rate.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;7:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">INTANGIBLE
    ASSETS AND LIABILITIES</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Remaining<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Net Carrying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Life (years)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cost</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amortization</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Customer relationships
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,315,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,019,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,296,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Deferred financing costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,811,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    174,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,637,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,126,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,193,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,933,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Intangible liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Below-market coal sales contracts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,600,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,705,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,895,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;7:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">INTANGIBLE
    ASSETS AND LIABILITIES&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Estimated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Remaining<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Accumulated<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Net Carrying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Life (years)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cost</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amortization</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Customer relationships
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,315,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    621,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,694,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Deferred financing costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,786,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    528,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,258,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total intangible assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,101,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,149,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,952,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Customer relationships represent intangible assets that were
    recorded at fair value when we acquired Oxford on
    August&#160;24, 2007. We amortized these assets over the
    expected life of the respective customer relationships. The
    amount included in depreciation, depletion and amortization
    related to customer relationships was $398,000, $446,000 and
    $174,000 for the years ended December&#160;31, 2009 and 2008 and
    the period from inception to December&#160;31, 2007,
    respectively. Oxford did not have this type of intangible asset
    prior to inception.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We capitalize costs incurred in connection with the
    establishment of credit facilities. On September&#160;30, 2009,
    we amended and restated our credit agreement (the &#147;Restated
    Credit Agreement&#148;). The Restated Credit Agreement was
    determined to be substantially different from our prior credit
    agreement, and therefore, we wrote off, to interest expense, the
    remaining unamortized capitalized costs of $1,252,000 from our
    prior credit agreement (the &#147;Original Credit
    Agreement&#148;). We incurred costs of $1,811,000 associated
    with the Restated Credit Agreement which we capitalized. These
    costs are amortized to interest expense over the life of the
    Restated Credit Agreement using the interest method.
    Amortization of deferred financing costs included in interest
    expense was $530,000, $398,000, $131,000 and $147,000 for the
    years ended December&#160;31, 2009 and 2008, the period from
    inception to December&#160;31, 2007 and the Predecessor period
    from January&#160;1, 2007 to August&#160;23, 2007, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expected amortization of identifiable intangible assets and
    deferred loan costs for each of the next five years will be
    approximately:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="91%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    During the years ending December&#160;31, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    984,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    868,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    639,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    254,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2014
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    227,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    961,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We evaluate our intangible assets for impairment when indicators
    of impairment exist. For the years ended December&#160;31, 2009
    and 2008, the period from inception through December&#160;31,
    2007 and the Predecessor period from January&#160;1, 2007 to
    August&#160;23, 2007, there were no impairments related to
    intangibles.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on expected shipments related to the below-market
    contracts, we expect to record annual amortization income of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    During the years ending December&#160;31, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,345,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,919,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    631,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    F-25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;8:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">OTHER
    CURRENT LIABILITIES</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other current liabilities consist of the following at December
    31:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Below-market coal sales contracts(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,345,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued interest and interest rate swap(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    860,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,262,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Contingent liabilities(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,125,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,384,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,098,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,714,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,360,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Below-market coal sales contracts and contingent liabilities
    assumed with the Phoenix Coal acquisition. See Note&#160;3.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    The interest rate swap is discussed in Note&#160;11.</TD>
</TR>

</TABLE>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;9:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ASSET
    RETIREMENT OBLIGATION</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our asset retirement obligations arise from the SMCRA and
    similar state statutes, which require that mine property be
    restored in accordance with specified standards and an approved
    reclamation plan. The required reclamation activities to be
    performed are outlined in our mining permits. These activities
    include reclaiming the pit and support acreage at surface mines.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We review our asset retirement obligations at least annually and
    make necessary adjustments for permit changes as granted by
    state authorities and for revisions of estimates of the amount
    and timing of costs. When the liability is initially recorded
    for the costs to open a new mine site, the offset is recorded to
    the producing mine asset. Over time, the ARO liability is
    accreted to its present value, and the capitalized cost is
    depreciated over the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    for the related mine. The liability is also increased as
    additional land is disturbed during the mining process. The
    timeline between digging the mining pit and extracting the coal
    is relatively short; therefore, much of the liability created
    for active mining is expensed within a month or so of
    establishment because the related coal has been extracted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, we had recorded asset retirement
    obligation liabilities of $13.3&#160;million, including amounts
    reported as current liabilities. While the precise amount of
    these future costs cannot be determined with absolute certainty
    as of December&#160;31, 2009, we estimate that the aggregate
    undiscounted cost of final mine closure is approximately
    $15.5&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table presents the activity affecting the asset
    retirement obligation for the respective years:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="72%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Beginning balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,292,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,644,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accretion expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    650,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    459,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,358,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,594,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revisions in estimated cash flows
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,802,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,783,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Additions due to acquisition
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,957,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total asset retirement obligation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,343,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,292,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,377,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,749,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Noncurrent liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,966,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,543,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;10:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">LONG-TERM
    DEBT</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We had long-term debt as of December&#160;31, 2009 and 2008
    consisting of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="71%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FirstLight Funding&#160;I, Ltd.:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Term loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    64,925,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    65,625,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Acquisition loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,304,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,800,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Revolving loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total FirstLight Funding&#160;I, Ltd. loans
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,729,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,425,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Note payable&#160;&#151; Peabody #1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    228,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    436,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Note payable&#160;&#151; Peabody #2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,843,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Note payable&#160;&#151; CONSOL #1
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,570,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,089,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Note payable&#160;&#151; CONSOL #2
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,317,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Note payable&#160;&#151; Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,711,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83,977,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Less current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,113,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,535,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    91,598,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    81,442,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">FirstLight
    Funding&#160;I, Ltd. Debt</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Restated Credit Agreement is with a syndicate of lenders
    with FirstLight Funding&#160;I, Ltd. (&#147;FirstLight&#148;)
    acting as the Agent. The Restated Credit Agreement provides for
    borrowings of up to $115,000,000 in the form of $70,000,000 of
    term loans, acquisition loans of up to $25,000,000 and a
    revolving credit facility of $20,000,000. The Restated Credit
    Agreement includes the option of a Base Rate (as defined below)
    or LIBOR interest rate plus an applicable margin depending upon
    the type of borrowing. Base Rate is defined by the Restated
    Credit Agreement as the highest of (a)&#160;the rate publicly
    quoted from time to time by The Wall Street Journal as the
    &#147;base rate on corporate loans posted by at least
    seventy-five percent (75%) of the nation&#146;s 30 largest
    banks,&#148; (b)&#160;the sum of the Federal Funds Rate plus
    one-half of one percentage point (0.50%), and (c)&#160;effective
    September&#160;30, 2009, 1.50%. The Restated Credit Agreement is
    secured by pledging all of our assets and equity interests in
    wholly-owned subsidiaries. The Restated Credit Agreement
    requires us to meet various financial covenants and contains
    financial and other covenants that limit our ability to, among
    other things, effect acquisitions or dispositions and borrow
    additional funds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009 and 2008, we had $90,729,000 and
    $80,425,000, respectively, of borrowings outstanding and
    $8,245,000 and $5,404,000, respectively, of letters of credit
    outstanding. At December&#160;31, 2009 and 2008, we had
    available unused capacity for borrowings under the Restated
    Credit Agreement and our original credit agreement
    (&#147;Original Credit Agreement&#148;) of $7,255,000 and
    $9,900,000, respectively. As of December&#160;31, 2009 and 2008,
    the Base Rate was 3.25% and LIBOR was 0.25% and 1.83%,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In February 2009, we were notified by FirstLight that we failed
    to provide an updated list of after-acquired properties within
    the timeframe outlined in our Original Credit Agreement. This
    administrative issue was satisfactorily resolved by the Third
    Amendment and Waiver to the Original Credit Agreement that was
    executed on February&#160;23, 2009. The Third Amendment and
    Waiver waived any potential defaults or potential events of
    default due to this administrative oversight. As consideration
    for the Third Amendment and Waiver, we paid and expensed
    amendment fees totaling $350,000 and the applicable margin for
    Term Loan 1, Acquisition Loan 1 and the Revolving Loans (as
    defined in the Original Credit Agreement) was increased from
    2.5% to 3.0% per annum for LIBOR advances and from 1.25% to
    2.75% per annum on Base Rate
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;10:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">LONG-TERM
    DEBT&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    advances. The applicable margins for Term Loan 2 and Acquisition
    Loan 2 (as defined in the Original Credit Agreement) were
    increased from 5.5% to 6.5% per annum on LIBOR advances and from
    4.25% to 6.25% per annum on Base Rate advances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to facilitate the Phoenix Coal acquisition, it was
    necessary to enter into negotiations with FirstLight that
    resulted in another amendment to our Original Credit Agreement.
    The parties agreed to incorporate this amendment and all prior
    amendments directly into the Restated Credit Agreement. This
    resulted in the Restated Credit Agreement, effective
    September&#160;30, 2009. This amendment allowed for the Phoenix
    Coal acquisition, subject to certain financial limitations. As
    consideration for the Restated Credit Agreement, we paid
    amendment fees totaling $500,000 and the applicable margins for
    all Term Loan 1, Acquisition Loan 1 and the Revolving Credit
    Facility amounts outstanding or new borrowings was increased
    from 3.0% to 4.5% per annum on LIBOR loans and from 2.75% to
    4.25% per annum on Base Rate loans. The applicable margins for
    all Term Loan 2 and Acquisition Loan 2 amounts outstanding
    increased from 6.5% to 8.0% per annum on LIBOR advances and from
    6.25% to 7.75% per annum on Base Rate advances. The amendment
    also provided for a LIBOR interest rate floor of 1.0% per annum.
    In addition, the Leverage Ratio covenant, defined as total debt
    divided by the last twelve months&#146; EBITDA (as defined in
    the Restated Credit Agreement), was reduced from 4.25 to 1.00 to
    3.50 to 1.00 for the period September&#160;30, 2009 through
    December&#160;31, 2010 and to 3.00 to 1.00 thereafter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We were in compliance with all covenants under the terms of the
    Restated Credit Agreement as of December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Term
    Loans</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We had $64,925,000 of term loans outstanding as of
    December&#160;31, 2009 under the Restated Credit Agreement with
    $43,625,000 representing Term Loan 1 borrowings and $21,300,000
    representing Term Loan 2 borrowings. Term Loan 1 provided for
    borrowings up to $48,000,000 and has a current stated interest
    rate equal to Base Rate plus 4.25% per annum on advances or, at
    the election of the borrower, LIBOR plus 4.5% per annum on
    advances. We are obligated to make quarterly principal payments
    of $175,000 on Term Loan 1 until maturity. During 2009, we made
    principal repayments of $700,000. Term Loan 2 provided for
    borrowings up to $22,000,000 and has a current stated interest
    rate of Base Rate plus 7.75% per annum on advances or, at the
    election of the borrower, LIBOR plus 8.0% per annum. No
    principal repayments are required on Term Loan 2 until maturity.
    Both obligations mature in August 2012 and any advances
    requested by us were prorated between the two term loans.
    Additional borrowings are not permitted under the terms of these
    term loans.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Acquisition
    Loans</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We had $21,304,000 of acquisition loans outstanding as of
    December&#160;31, 2009 with $14,454,000 representing borrowings
    under Acquisition Loan 1 and $6,850,000 representing Acquisition
    Loan 2 borrowings. Acquisition Loan 1 provided for borrowings up
    to $17,000,000 and, as of December&#160;31, 2009, had stated
    interest rates of Base Rate plus 4.25% per annum on advances or,
    at the election of the borrower, LIBOR plus 4.50% per annum on
    advances. Acquisition Loan 2 was for $8,000,000 and had a
    current stated interest rate of Base Rate plus 7.75% per annum
    on advances or, at the election of the borrower, LIBOR plus 8.0%
    per annum on advances. Both obligations mature in August 2012
    and any advances requested by us are prorated between the two
    acquisition loans.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We had until March&#160;30, 2009 to utilize these lines of
    credit, after which time no additional borrowings were
    permitted. Until March&#160;30, 2009, we paid a commitment fee
    of 0.50% per annum that was due quarterly on the unused portion
    of these lines of credit. Beginning on March&#160;30, 2009, we
    were obligated to make
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-28
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;10:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">LONG-TERM
    DEBT&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    quarterly principal payments of $36,500 on Acquisition Loan 1
    until maturity. During 2009, we made principal payments of
    $146,000. No principal repayments are required on Acquisition
    Loan 2 until maturity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revolving
    Credit Facility</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have a revolving credit facility for Revolving Loans in the
    amount of $20,000,000. As of December&#160;31, 2009 and 2008, we
    had $4,500,000 and $0, respectively, outstanding under the
    revolving credit facility and $8,245,000 and $5,404,000,
    respectively, of outstanding letters of credit. The revolving
    credit facility has an August 2012 maturity and a current stated
    interest rate of Base Rate plus 4.25% per annum on advances, or,
    at the election of the borrower, LIBOR plus 4.5% per annum on
    advances. Under the facility, letters of credit can be issued in
    an aggregate amount not to exceed $12,000,000, which results in
    a dollar for dollar reduction in the available capacity. As of
    December&#160;31, 2009, we had $7,255,000 available on the
    revolving credit facility. The facility matures on
    August&#160;24, 2012 and, until that time, only interest
    payments are required. For our outstanding letters of credit
    issued under the revolving credit facility, we pay issuing fees
    of 0.25% per annum on the stated amount of the letters of credit
    when we issue a letter of credit and an applicable margin of
    2.50% per annum to FirstLight, as the Agent, on behalf of the
    lenders. Additionally, we pay a commitment fee of 0.50% per
    annum that is due quarterly for any unused capacity under this
    revolving credit facility.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Notes Payable</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Peabody&#160;#1&#160;&#151; </I></B>In July 2007, we
    acquired coal reserves from Peabody Energy Corporation through
    one of its subsidiaries in exchange for a note payable that is
    due in three annual payments of $250,000 at no stated interest
    rate. The obligation was secured by real property and mineral
    rights and matures in June 2010. The difference between the face
    amount and the imputed amount was recorded as a discount using
    an imputed interest rate of 9.25% and is being amortized into
    interest expense using the interest method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Peabody&#160;#2&#160;&#151; </I></B>In December 2009, we
    acquired coal reserves from Peabody Energy Corporation through
    one of its subsidiaries in exchange for a down payment of
    $1,000,000 and a note payable that is due in two annual payments
    of $1,000,000 at no stated interest rate. The obligation was
    secured by real property and mineral rights and matures in
    December 2011. The difference between the face amount and the
    imputed amount was recorded as a discount using an imputed
    interest rate of 5.5% and is being amortized into interest
    expense using the interest method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>CONSOL&#160;#1&#160;&#151; </I></B>In August 2007,
    Harrison Resources acquired coal reserves from CONSOL Energy,
    through one of its subsidiaries, in exchange for a note payable
    that matures in August 2010. The note is payable in three equal
    installments of $1,773,000 at no stated interest rate. The
    difference between the face amount and the imputed amount was
    recorded as a discount using an imputed interest rate of 8.25%
    and is being amortized into interest expense using the interest
    method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>CONSOL&#160;#2&#160;&#151; </I></B>In March 2009, we
    acquired coal reserve leases from CONSOL Energy, through one of
    its subsidiaries, in exchange for a down payment of $1,500,000
    and a note payable that matures in March 2012 in an original
    face amount of $1,500,000. The note is payable in monthly
    installments based on
    <FONT style="white-space: nowrap">units-of-production</FONT>
    with a minimum of $500,000 due annually at no stated interest
    rate. The difference between the face amount and the imputed
    amount was recorded as a discount using an imputed interest rate
    of 4.6% and is being amortized using the interest method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Other Note Payable&#160;&#151; </I></B>We acquired coal
    reserves from an individual with payments due of $5,000 per year
    for ten years at no stated interest rate. The obligation matures
    in April 2015. The difference between the face amount and the
    imputed amount was recorded as a discount using an imputed
    interest rate of 6.75% and is being amortized into interest
    expense using the interest method.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;10:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">LONG-TERM
    DEBT&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Debt
    Maturity Table</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The total debt of the Partnership matures as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="86%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    During the years ending December&#160;31, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,113,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,268,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89,317,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    2014
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,711,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;11:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">INTEREST
    RATE CAP AND SWAP AGREEMENTS</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;11, 2009, we entered into an interest rate cap
    agreement to hedge our exposure to rising LIBOR interest rates
    during 2010. This agreement, which has an effective date of
    January&#160;4, 2010 and a notional amount of $50,000,000,
    provides for a LIBOR interest rate cap of 2% using three-month
    LIBOR. LIBOR was 0.251% as of December&#160;31, 2009. We paid a
    fixed fee of $85,000 for this agreement which has quarterly
    settlement dates and matures on December&#160;31, 2010. At
    December&#160;31, 2009, the value of the interest rate cap was
    $34,000 and was recorded in other assets and the
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    decrease in value of $51,000 was recorded to interest expense in
    the consolidated statement of operations for the year ended
    December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We entered into an interest rate swap agreement on
    August&#160;24, 2007 that had an original notional principal
    amount of $67,500,000 and a maturity of August 2009. Under the
    swap agreement, we paid interest at a fixed rate of 4.83% and
    received interest at a variable rate equal to LIBOR (1.43% as of
    December&#160;31, 2008), based on the notional amount. The swap
    agreement decreased interest expense by $1,681,000 for the year
    ended December&#160;31, 2009 and increased interest expense by
    $574,000 and $1,107,000 for the year ended December&#160;31,
    2008 and the period from inception to December&#160;31, 2007,
    respectively. As of December&#160;31, 2008, the fair value of
    the swap agreement was a liability of approximately $1,681,000.
    The swap agreement matured in August 2009.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;12:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">FAIR
    VALUE OF FINANCIAL INSTRUMENTS</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective January&#160;1, 2008, we adopted the provision for
    fair value of financial assets and financial liabilities. We
    utilized fair value measurement guidance that, among other
    things, defines fair value, requires enhanced disclosures about
    assets and liabilities carried at fair value and establishes a
    hierarchal disclosure framework based upon the quality of inputs
    used to measure fair value. We elected to defer the application
    of the guidance to nonfinancial assets and liabilities until our
    fiscal year 2009 and that application did not have a material
    impact on our consolidated financial statements as of
    December&#160;31, 2009. As a result of the adoption, we have
    elected not to measure any additional financial assets or
    liabilities at fair value, other than those which were
    previously recorded at fair value prior to the adoption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial instruments measured at fair value on a recurring
    basis are summarized below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="51%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fair Value Measurements at December&#160;31, 2009</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Quoted Prices in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Significant<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Active Markets for<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Significant Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Unobservable<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Identical Liabilities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Observable Inputs<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Inputs<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 3)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest rate cap agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;12:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">FAIR
    VALUE OF FINANCIAL
    INSTRUMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="51%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fair Value Measurements at December&#160;31, 2008</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Quoted Prices in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Significant<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Active Markets for<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Significant Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Unobservable<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Identical Liabilities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Observable Inputs<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Inputs<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Level 3)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest rate swap agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,681,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following methods and assumptions were used to estimate the
    fair values of financial instruments for which the fair value
    option was not elected:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Cash and cash equivalents, trade accounts receivable and
    accounts payable:</I>&#160;&#160;The carrying amount reported in
    the balance sheets for cash and cash equivalents, trade accounts
    receivable and accounts payable approximates its fair value due
    to the short maturity of these instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Fixed rate debt:</I>&#160;&#160;The fair values of long-term
    debt are estimated using discounted cash flow analyses, based on
    current market rates for instruments with similar cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Variable rate debt:</I>&#160;&#160;The fair value of variable
    rate debt is estimated using discounted cash flow analyses,
    based on our best estimates of market rate for instruments with
    similar cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The carrying amounts and fair values of financial instruments
    for which the fair value option was not elected are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2008</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Carrying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Carrying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fair Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Fair Value</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fixed rate debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,982,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,952,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,552,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,311,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Variable rate debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    90,729,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    90,729,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    80,425,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    80,425,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;13:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">LONG-TERM
    INCENTIVE PLAN</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In November 2007, we implemented a Long-Term Incentive Plan or
    LTIP whereby equity awards may be granted to executives,
    officers, employees, directors, or consultants, as determined by
    the Board of Director&#146;s Compensation Committee
    (&#147;Compensation Committee&#148;), in the form of partnership
    units, and may include distribution equivalent rights. Under
    this program, we have granted phantom units that have no rights
    until they are converted upon vesting. At our option, we can
    issue cash or LTIP units upon vesting, although we do not intend
    to settle these awards in cash. To date, we have always issued
    units and those units have the right to an allocation of income
    and to distributions but are not obligated to participate in any
    capital calls. See Unit-Based Compensation section of
    Note&#160;2 for a further description of how we value our LTIP
    units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These units are subject to such conditions and restrictions as
    our Compensation Committee may determine, including continued
    employment or service or achievement of pre-established
    performance goals and objectives. Currently, there are no
    outstanding performance awards. Although we have the option to
    repurchase these units upon employee termination, we currently
    do not have the intent to do so. Generally, these units vest in
    equal annual increments over four years with accelerated vesting
    of the first increment in certain cases. The total number of
    units authorized to distribute under the plan was 181,348 at
    December&#160;31, 2009. Unless amended by our Compensation
    Committee, the LTIP will expire in November 2017.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Surrendered units were used to satisfy the individual tax
    obligations of those LTIP participants electing a net issuance
    whereby we pay the employee&#146;s tax liability and the
    employee surrenders a sufficient number of units equal to the
    amount of tax liability assumed by us. After consideration of
    the grant vesting during 2009, 44,431&#160;units remain
    available for issuance in the future.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;13:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">LONG-TERM
    INCENTIVE PLAN&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We recognize compensation expense over the vesting period of the
    units, which is generally four years for each award. For the
    years ended December&#160;31, 2009 and 2008 and for the period
    from inception to December&#160;31, 2007, our gross LTIP expense
    was approximately $472,000, $468,000 and $25,000, respectively,
    which is included in selling, general and administrative
    expenses (SG&#038;A) in our consolidated statements of
    operations. As of December&#160;31, 2009 and 2008, approximately
    $840,000 and $1,118,000, respectively, of cost remained
    unamortized which we expect to recognize over a remaining
    weighted average period of 2&#160;years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes additional information concerning
    our unvested LTIP units:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="81%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Weighted<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Average<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Grant<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Date Fair<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unvested balance at December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    106,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Issued
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,984
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Surrendered
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,825
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Forfeited
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,410
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unvested balance at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    107,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,148
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Issued
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30,883
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Surrendered
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,578
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unvested balance at December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79,050
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The value of LTIP units vested during the years ended
    December&#160;31, 2009 and 2008 and the period from inception to
    December&#160;31, 2007 was $465,000, $401,000 and $0,
    respectively.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;14:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">WORKERS&#146;
    COMPENSATION AND BLACK LUNG</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have no liabilities under state statutes and the Federal Coal
    Mine Health and Safety Act of 1969, as amended, to pay black
    lung benefits to eligible employees, former employees and their
    dependents. With regard to workers&#146; compensation, we
    provide benefits to our employees by being insured through state
    sponsored programs or an insurance carrier where there is no
    state sponsored program.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;15:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">RETIREMENT
    PLAN</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We had a money purchase pension plan in which substantially all
    full-time employees with more than six months of service
    participated. Contributions were made annually at 4% of
    qualified wages and an additional 4% was contributed on wages
    over the FICA limit up to the maximum allowed under the Internal
    Revenue Code. We incurred expense of $1,522,000, $1,083,000,
    $379,000 and $496,000 for the years ended December&#160;31, 2009
    and 2008, the period from inception to December&#160;31, 2007
    and the Predecessor period from January&#160;1, 2007 to
    August&#160;23, 2007, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Effective January&#160;1, 2010, the money purchase pension plan
    was replaced with a 401(k) plan.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;16:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NONCONTROLLING
    INTEREST</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Harrison Resources, a limited liability company, was formed in
    March 2006 by Oxford to acquire coal properties, develop mine
    sites, and mine coal for sale to customers. Effective
    January&#160;30, 2007, 49% of
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-32
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;16:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NONCONTROLLING
    INTEREST&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Harrison Resources was sold to CONSOL Energy and its ownership
    interest is held by one of its subsidiaries. Harrison
    Resources&#146; revenues which are included in the consolidated
    statements of operations were $37,190,000, $20,605,000,
    $4,791,000, and $4,250,000 for the years ended December&#160;31,
    2009 and 2008 and the periods from inception to
    December&#160;31, 2007 and from January&#160;1, 2007 to
    August&#160;23, 2007, respectively. Oxford Mining has a contract
    mining agreement with Harrison Resources to operate the mines
    for an
    <FONT style="white-space: nowrap">agreed-upon</FONT>
    per ton price and markets all the coal under a broker agreement
    with Harrison Resources.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Harrison Resources&#146; cash, which is deemed to be restricted
    due to the limitations of its use for Harrison Resources&#146;
    operations and primarily relates to funds set aside for future
    reclamation obligations, was $1,877,000 and $1,873,000 at
    December&#160;31, 2009 and 2008, respectively, and is included
    in the balance sheet caption Other long-term assets. Harrison
    Resources&#146; total net assets as of December&#160;31, 2009
    and 2008 were $4,218,000 and $4,688,000, respectively
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The noncontrolling interest represents the 49% of Harrison
    Resources owned by CONSOL Energy, through one of its
    subsidiaries, and consists of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Beginning balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,297,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,856,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,895,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,891,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Distributions to owners
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,125,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,450,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ending balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,067,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,297,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;17:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">COMMITMENTS
    AND CONTINGENCIES</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Coal
    Sales Contracts</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are committed under long-term contracts to sell coal that
    meets certain quality requirements at specified prices. Most of
    these prices are subject to pass through or inflation adjusters
    that mitigate some risk from rising costs. Quantities sold under
    some of these contracts may vary from year to year within
    certain limits at the option of the customer or us. The
    remaining life of our long-term contracts ranges from one to
    nine&#160;years.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Purchase
    Commitments</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We use independent contractors to mine some of our coal at a few
    of our mines. We also purchase coal from third parties in order
    to meet quality or delivery requirements under our customer
    agreements. We assumed one long-term purchase agreement as a
    result of the Phoenix Coal acquisition. Under this agreement, we
    are committed to purchase a certain volume of coal until the
    coal reserves covered by the contract are depleted. Based on the
    proven and probable coal reserves in place at December&#160;31,
    2009, we expect this contract to continue beyond five years.
    Additionally, we bought coal on the spot market, and the cost of
    that coal is dependent upon the market price and quality of the
    coal. Supply disruptions could impair our ability to fill
    customer orders or require us to purchase coal from other
    sources at a higher cost to us in order to satisfy these orders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Transportation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We depend upon barge, rail, and truck transportation systems to
    deliver our coal to our customers. Disruption of these
    transportation services due to weather-related problems,
    mechanical difficulties, strikes, lockouts, bottlenecks, and
    other events could temporarily impair our ability to supply coal
    to our customers,
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-33
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;17:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">COMMITMENTS
    AND CONTINGENCIES&#160;&#151;&#160;(Continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    resulting in decreased shipments. We entered into a long-term
    transportation contract on April&#160;1, 2006 for rail services,
    and that agreement has been amended and extended through
    March&#160;31, 2011.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Defined
    Contribution Pension Plan</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At December&#160;31, 2009, we had an obligation to pay our GP
    for the purpose of funding our GP&#146;s commitments to the
    money purchase pension plan in the amount of $1,522,000. This
    amount is expected to be paid by September 2010.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Security
    for Reclamation and Other Obligations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2009, we had $31,300,000 in surety bonds
    and $14,000 in cash bonds outstanding to secure certain
    reclamation obligations. Additionally, as of December&#160;31,
    2009, we had letters of credit outstanding in support of these
    surety bonds of $6,900,000 and also a letter of credit of
    $1,345,000 guaranteeing an operating lease. Further, as of
    December&#160;31, 2009, we had certain road bonds of $645,000
    outstanding and performance bonds outstanding of $12,300,000.
    Our management believes these bonds and letters of credit will
    expire without any claims or payments thereon and thus any
    subrogation or other rights with respect thereto will not have a
    material adverse effect on our financial position, liquidity or
    operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Legal</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are involved, from time to time, in various legal proceedings
    arising in the ordinary course of business. While the ultimate
    results of these proceedings cannot be predicted with certainty,
    our management believes these claims will not have a material
    adverse effect on our financial position, liquidity or
    operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Guarantees</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our GP and the Partnership guarantee certain obligations of our
    subsidiaries. Our management believes that these guarantees will
    expire without any liability to the guarantors, and therefore
    any indemnification or subrogation commitments with respect
    thereto will not have a material adverse effect on our financial
    position, liquidity or operations.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;18:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">CONCENTRATION
    OF CREDIT RISK AND MAJOR CUSTOMERS</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have a credit policy that establishes procedures to determine
    creditworthiness and credit limits for trade customers.
    Generally, credit is extended based on an evaluation of the
    customer&#146;s financial condition. Collateral is not generally
    required, unless credit cannot be established.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We market our coal principally to electric utilities,
    municipalities and electric cooperatives and industrial
    customers in Illinois, Indiana, Kentucky, Ohio, Pennsylvania and
    West Virginia. As of December&#160;31, 2009 and 2008, accounts
    receivable from electric utilities totaled $18.2&#160;million
    and $16.3&#160;million or 75% and 76% of total trade
    receivables, respectively. A small portion of these sales are
    executed through coal brokers. Three customers individually
    accounted for greater than 10% of coal sales for the year ended
    December&#160;31, 2009 which, in the aggregate, represented
    approximately 64.1% of coal sales for the year. Two customers
    individually accounted for greater than 10% of coal sales which,
    in the aggregate, represented approximately 55.5%, 64.0% and
    64.2% of coal sales for the year ended December&#160;31, 2008,
    the period from inception to December&#160;31, 2007 and the
    Predecessor period from January&#160;1, 2007 to August&#160;23,
    2007, respectively. These same customers, in the aggregate,
    represented approximately 58.5% and 51.5% of the outstanding
    accounts receivable at December&#160;31, 2009 and 2008,
    respectively.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-34
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;19:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">RELATED
    PARTY TRANSACTIONS</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with our formation in August 2007, the Partnership
    and Oxford Mining entered into an administrative and operational
    services agreement (&#147;Services Agreement&#148;) with our GP.
    The Services Agreement is terminable by either party upon thirty
    days&#146; written notice. Under the terms of the Services
    Agreement, our GP provides services through its employees to us
    and is reimbursed for all related costs incurred on our behalf.
    Our GP provides us with services such as general administrative
    and management services, human resources, information
    technology, finance and accounting, corporate development, real
    property, marketing, engineering, operations (including mining
    operations), geological, risk management and insurance services.
    Pursuant to the Services Agreement, we reimbursed our GP for
    costs primarily related to payroll for all the periods after
    August&#160;24, 2007, of which $2,504,000 and $2,502,000 were
    included in our accounts payable at December&#160;31, 2009 and
    2008, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Also in connection with our formation in August 2007, Oxford
    Mining entered into an advisory services agreement
    (&#147;Advisory Agreement&#148;) with certain affiliates of AIM
    Oxford. The Advisory Agreement runs for a term of ten years
    until August 2017, subject to earlier termination at any time by
    the AIM Oxford affiliates. Under the terms of the Advisory
    Agreement, the AIM Oxford affiliates have duties as financial
    and management advisors to Oxford Mining, including providing
    services in obtaining equity, debt, lease and acquisition
    financing, as well as providing other financial, advisory and
    consulting services for the operation and growth of Oxford
    Mining. These services consist of advisory services of a type
    customarily provided by sponsors of U.S.&#160;private equity
    firms to companies in which they have substantial investments.
    Such services are rendered at the reasonable request of Oxford
    Mining. The basic annual fees under the Advisory Agreement were
    $250,000 for 2008, and for 2009 and each year thereafter
    increase based on the percentage increase in gross revenues.
    Further fees are payable for additional significant services
    requested. Pursuant to the Advisory Agreement, advisory fees
    were paid to AIM Oxford affiliates of $1,307,000 and $225,000
    for the years ended December&#160;31, 2009 and 2008,
    respectively. No advisory fees were paid for the period from
    inception to December&#160;31, 2007. The advisory fees paid for
    2009 included a transaction fee of $1,000,000 paid to the AIM
    Oxford affiliates for additional significant services in
    connection with the Restated Credit Agreement and the fee is
    included in deferred financing costs. See FirstLight Funding I,
    Ltd. Debt section of Note&#160;10.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have debt with CONSOL Energy, the minority owner of Harrison
    Resources, as described in Note&#160;10. Also, coal was
    purchased for resale from CONSOL Energy in the amount of
    $1,089,000 and $4,780,000 during the period from inception to
    December&#160;31, 2007 and the Predecessor period from
    January&#160;1, 2007 to August&#160;23, 2007, respectively. We
    did not purchase coal from CONSOL Energy for resale during the
    years ended December&#160;31, 2009 and 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Contract services were provided to Tunnell Hill Reclamation,
    LLC, a company with common owners, in the amount of $695,000,
    $1,050,000, $186,000 and $1,104,000 for the years ended
    December&#160;31, 2009 and 2008, the period from inception to
    December&#160;31, 2007 and the Predecessor period from
    January&#160;1, 2007 to August&#160;23, 2007, respectively.
    Accounts receivable were $70,000 and $0 from Tunnel Hill at
    December&#160;31, 2009 and 2008, respectively. We have concluded
    that Tunnell Hill Reclamation, LLC does not represent a variable
    interest entity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We had accounts receivable from employees and owners in the
    amount of $28,000 and $6,000 at December&#160;31, 2009 and 2008,
    respectively, which have been collected in full subsequent to
    year end.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-35
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;20:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUPPLEMENTAL
    CASH FLOW INFORMATION</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="41%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Oxford Mining<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B>Oxford Resource Partners, LP<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Company<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Successor)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Predecessor)</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>For the Period from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Inception to<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>For the Period from<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>For the Years Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>January&#160;1, 2007 to<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>August&#160;23, 2007</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash paid for:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,005,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,395,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,202,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,625,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Non-cash activity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Market value of common units vested in LTIP
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    363,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    302,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Increase ( decrease) in:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Accounts payable for purchase of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    755,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,270,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,941,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,924,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;21:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SEGMENT
    INFORMATION</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We operate in one business segment. We operate surface coal
    mines in Northern Appalachia and the Illinois Basin and sell
    high value steam coal to utilities, industrial customers or
    other coal-related organizations primarily in the eastern United
    States. Our operating and executive management reviews and bases
    its decisions upon consolidated reports. All three of our
    operating subsidiaries participate primarily in the business of
    utilizing surface mining techniques to mine domestic coal and
    prepare it for sale to their customers. The operating companies
    share customers and a particular customer may receive coal from
    any one of the operating companies.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;22:&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUBSEQUENT
    EVENTS</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following represents material events that have occurred
    subsequent to December&#160;31, 2009 through March&#160;24,
    2010, the date these financial statements were issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We paid Phoenix Coal $500,000 in January 2010 for achieving
    specified objectives as to arrangements for additional coal
    leases in western Kentucky.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We made a quarterly distribution to our unitholders of
    $2,815,000 in February 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We granted LTIP awards in January and February 2010 in the
    amount of $649,000. Of those units, the first 25% vested in
    January and March respectively with a remaining unvested value
    of $487,000. The remaining grant vests ratably over the next
    three years.
</DIV>
<!-- /XBRL,ns -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-36
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->


<!-- link1 "Report of Independent Auditors" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Report of
    Independent Auditors</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors of Phoenix Coal Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have audited the accompanying combined balance sheets of the
    Carved-Out Surface Mining Operations of Phoenix Coal Inc. (the
    Company) as described in Note&#160;1, as of September&#160;30,
    2009 and December&#160;31, 2008, and the related combined
    statements of operations and comprehensive loss, group equity,
    and cash flows for the nine months ended September&#160;30, 2009
    and for the years ended December&#160;31, 2008 and 2007. These
    financial statements are the responsibility of Phoenix Coal
    Inc.&#146;s management. Our responsibility is to express an
    opinion on these financial statements based on our audits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We conducted our audits in accordance with auditing standards
    generally accepted in the United States. Those standards require
    that we plan and perform the audit to obtain reasonable
    assurance about whether the financial statements are free of
    material misstatement. We were not engaged to perform an audit
    of the Company&#146;s internal control over financial reporting.
    Our audits included consideration of internal control over
    financial reporting as a basis for designing audit procedures
    that are appropriate in the circumstances, but not for the
    purpose of expressing an opinion on the effectiveness of the
    Company&#146;s internal control over financial reporting.
    Accordingly, we express no such opinion. An audit also includes
    examining, on a test basis, evidence supporting the amounts and
    disclosures in the financial statements, assessing the
    accounting principles used and significant estimates made by
    management, and evaluating the overall financial statement
    presentation. We believe that our audits provide a reasonable
    basis for our opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In our opinion, the financial statements referred to above
    present fairly, in all material respects, the combined financial
    position of the Company as described in Note&#160;1, at
    September&#160;30, 2009 and December&#160;31, 2008, and the
    combined results of their operations and their cash flows for
    the nine months ended September&#160;30, 2009 and for the years
    ended December&#160;31, 2008 and 2007 in conformity with
    U.S.&#160;generally accepted accounting principles.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    /s/ Ernst &#038; Young LLP
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Louisville, Kentucky
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    December&#160;18, 2009
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-37
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,bs -->

<!-- link1 "Combined Balance Sheets" -->
 Combined Balance
    Sheets</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="9" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Assets</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Trade accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,349,835
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,843,134
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Coal inventories
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    252,357
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    452,558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Prepaid expenses and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    591,957
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    400,886
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,194,149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,696,578
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Property, plant, and equipment, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,576,077
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,162,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Restricted certificates of deposit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    509,825
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mining rights, mine development costs and mineral reserves net
    of accumulated amortization of $3,796,187 in 2009 and $3,888,082
    in 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,707,173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,649,026
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Prepaid royalties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    188,602
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    216,147
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    72,666,001
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    65,234,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="9" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Liabilities and shareholders&#146; equity</B>
</DIV>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Trade accounts payable and accrued liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,839,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,449,019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Current portion of long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,224,486
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,532,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Current portion of asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,627,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,958,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,691,350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,939,064
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Asset retirement obligations, less current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,898,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,366,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term debt, less current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,080,972
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,641,745
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Group equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,995,401
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,287,751
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    72,666,001
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    65,234,560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>See accompanying notes.</I>
</DIV>
<!-- /XBRL,bs -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-38
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 5pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,op -->

<!-- link1 "Combined Statements of Operations and Comprehensive Loss" -->

    Combined Statements of Operations and Comprehensive
    Loss</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Nine Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    58,493,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    76,645,989
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    66,973,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cost and expenses:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Cost of sales, exclusive of depreciation and amortization shown
    separately
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,531,148
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71,877,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61,939,870
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Selling expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,851,821
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,188,945
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,746,824
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    General and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,947,484
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,090,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,822,082
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,799,952
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,646,543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,064,979
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Sales contract termination cost
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,000,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Asset impairment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,873,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76,130,405
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97,803,221
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82,446,810
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loss from operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (17,636,638
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (21,157,232
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15,473,665
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other income (expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,600,873
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,811,280
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (86,316
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,302
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,292
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Other, principally sale of assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,142
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,014,424
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    739,493
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,602,115
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,819,402
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    661,469
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loss before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (20,238,753
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23,976,634
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,812,196
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,081
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,838
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,155
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net loss and comprehensive loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (20,254,834
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (24,014,472
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (14,882,351
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>See accompanying notes.</I>
</DIV>
<!-- /XBRL,op -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-39
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,se -->

<!-- link1 "Combined Statements of Group Equity" -->
 Combined
    Statements of Group Equity</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">For the
    Nine Months Ended September&#160;30, 2009 and<BR>
    the Years Ended December&#160;31, 2008 and 2007</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL,body -->
<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Group equity at December&#160;31, 2006</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,800,282
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Contribution from parent
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,670,486
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Share-based compensation allocated from parent
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    813,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,882,351
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Group equity at December&#160;31, 2007</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,401,871
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Contribution from parent
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,511,411
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Share-based compensation allocated from parent
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,388,941
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (24,014,472
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Group equity at December&#160;31, 2008</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,287,751
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Contribution from parent
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,703,615
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Share-based compensation allocated from parent
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,258,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (20,254,834
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Group equity at September&#160;30, 2009</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,995,401
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- /XBRL,se -->
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>See accompanying notes.</I>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-40
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><!-- XBRL,cf -->

<!-- link1 "Combined Statements of Cash Flows" -->
 Combined
    Statements of Cash Flows</FONT></B>
</DIV>
<!-- XBRL,body -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Nine Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Operating activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (20,254,834
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (24,014,472
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (14,882,351
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjustments to reconcile net loss to net cash used in operating
    activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,799,952
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,646,543
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,064,979
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Loss (gain) on sale of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,012,779
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (742,086
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Share-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,258,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,388,941
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    813,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Asset impairment write down
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,873,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (644,217
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (730,436
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,244,438
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Changes in noncash operating assets and liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Accounts receivable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,506,701
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,452,404
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,541,574
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Inventories
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    200,201
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    620,139
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (816,314
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Prepaid expenses and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (191,071
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,096
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (235,371
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Trade accounts payable and other accrued liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,390,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,169,229
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,147,696
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net cash used in operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,946,964
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,759,235
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,074,074
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Investing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Restricted certificates of deposit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    509,825
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (509,825
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds from sale of investments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    216,477
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Payments for other assets, principally mine development and
    mining rights
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,631,921
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,194,375
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,879,142
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds from sale of property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    210,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    683,912
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,582,346
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Payments for property and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,346,609
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,187,274
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,712,212
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net cash used in investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,258,705
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,207,562
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14,792,531
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Financing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Contributions from parent
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,703,615
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,511,411
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,670,486
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Principal payments on debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (209,025
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,058,336
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (939,463
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Payments on equipment financing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,288,921
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,486,278
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,007,250
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net cash provided by financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,205,669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,966,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,723,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net decrease in cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (142,832
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash equivalents, beginning of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142,832
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash equivalents, end of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Supplemental disclosure</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,237,268
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,055,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    245,893
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Noncash investing and financing activities</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vendor financing for equipment purchases
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,629,614
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,025,434
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,293,381
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>See accompanying notes.</I>
</DIV>
<!-- /XBRL,cf -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-41
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL,ns -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


<!-- link1 "Notes to Combined Financial Statements" -->
<B><FONT style="font-family: 'Times New Roman', Times">
    Notes to Combined Financial Statements<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">September&#160;30,
    2009 and December&#160;31, 2008</FONT></B>
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"><!-- TABLE 05 -->

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Operations and Significant Accounting Policies</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Nature
    of Operations and Basis of Presentation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Phoenix Coal Inc. (PCI) and Phoenix Coal Corporation, a wholly
    owned subsidiary of PCI, (collectively, the Parent) are engaged
    in the development, production, and sale of steam coal to
    utilities and industrial fuel consumers. The Parent is also
    engaged in the development of underground coal reserves. Mining
    activities are currently limited to one reportable business
    segment, which is the Illinois Basin. PCI is a publicly traded
    entity listed on the Toronto Stock Exchange and is headquartered
    in Madisonville, Kentucky, with corporate offices in Louisville,
    Kentucky.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;30, 2009, the Parent sold substantially all of
    its operating assets and operations associated with its surface
    coal mining operations in western Kentucky to Oxford Mining
    Company, LLC (Oxford). The assets acquired by Oxford were
    utilized in the operation of multiple surface coal mining
    locations and related support facilities (maintenance shop,
    barge loading facility, and coal preparation plant)
    (collectively, the Company). The assets transferred included
    coal and supplies inventories, coal reserves and related prepaid
    royalties, mining property, plant, and equipment, mining rights,
    coal purchase contracts, and coal sales contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These combined financial statements represent the carved-out
    financial position, results of operations, changes in group
    equity, and cash flows of the Company, combined from different
    legal entities, all of which are wholly owned subsidiaries of
    the Parent. The carved-out financial statements have been
    prepared in accordance with SEC Financial Reporting Manual
    section&#160;2065 <I>Acquisition of Selected Parts of an Entity
    May Result in Less Than Full Financial Statements </I>and Staff
    Accounting Bulletin (SAB) Topic 1.B. <I>Allocation of Expenses
    and Related Disclosure in Financial Statements of Subsidiaries,
    Divisions or Lesser Business Components of Another Entity</I>.
    The carved-out financial statements include allocations of
    certain Parent corporate expenses and intercompany interest
    charges (see Note&#160;2). Management believes that the
    assumptions and estimates used in preparation of the carved-out
    financial statements are reasonable. However, the carved-out
    financial statements may not necessarily reflect the
    Company&#146;s financial position, results of operations, or
    cash flows in the future, or what its financial position,
    results of operations, or cash flows would have been if the
    Company had been a stand-alone entity during the periods
    presented. Because of the nature of these carved-out financial
    statements, the Parent&#146;s net investment in the Company,
    including amounts due to/from the Parent, is shown as
    &#147;group equity.&#148;
</DIV>
<!-- XBRL,n -->
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The carved-out financial statements have been prepared in
    accordance with accounting principles generally accepted in the
    United States (GAAP). All monetary references expressed in these
    notes are references to United States dollars. All intercompany
    transactions between the Company&#146;s locations have been
    eliminated.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Use of
    Estimates</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The preparation of the carved-out financial statements in
    conformity with GAAP requires management to make estimates and
    assumptions that affect the reported amounts of assets and
    liabilities and disclosure of contingent assets and liabilities
    at the date of the carved-out financial statements and the
    reported amounts of revenues and expenses during the reporting
    period. Actual results could differ from these estimates. The
    assets and liabilities which require management to make
    significant estimates and assumptions in determining carrying
    values include, but are not limited to, coal inventories,
    property, plant, and equipment, mining rights, mine development,
    mineral reserves, prepaid royalties, provision for income taxes,
    and asset retirement obligations.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-42
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Operations and Significant Accounting
    Policies&#160;(continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Parent
    Sale of Surface Mining Operations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Parent currently reports its consolidated financial results
    in accordance with Canadian generally accepted accounting
    principles. As these carved-out financial statements represent a
    subset of the Parent&#146;s financial activity and are prepared
    under United States GAAP, the accounting treatment and related
    materiality levels of certain transactions may differ from the
    Parent&#146;s separately reported consolidated financial
    results. As previously noted, on September&#160;30, 2009, the
    Parent sold substantially all of its operating assets and
    operations associated with its surface coal mining operations in
    western Kentucky to Oxford. The consideration received under the
    terms of the acquisition agreement included cash, payment by
    Oxford of all debt associated with the equipment being sold and
    the assumption of certain asset retirement obligations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of June&#160;30, 2009, pursuant to the Canadian Institute of
    Chartered Accountants&#146; Handbook Section&#160;3475,
    <I>Disposal of Long-lived Assets and Discontinued Operations,
    </I>(a Canadian accounting standard that is consistent with
    Financial Accounting Standards Board (FASB) Accounting Standards
    Codification (ASC) 360, <I>Property, Plant, and Equipment</I>),
    the Parent classified these surface mining operations as held
    for sale and wrote down the related assets to the amount
    expected to be realized on sale, resulting in a charge of
    $38,920,000 to the Parent&#146;s consolidated statement of
    operations for the six months ended June&#160;30, 2009.
    Concurrent with the closing on September&#160;30, 2009, the
    Parent decreased this estimated loss by $2,680,000 and reported
    a loss on the sale of these surface mining operations of
    approximately $36,240,000 for the nine months ended
    September&#160;30, 2009. For purposes of these financial
    statements, an impairment charge was not recorded in the
    carved-out statement of operations as the surface mining assets
    are, from the Company&#146;s perspective, classified as assets
    held for use and therefore tested for impairment based on
    estimated future undiscounted cash flows to be realized from the
    use of the assets. Based on the Company&#146;s impairment
    analysis, as of September&#160;30, 2009 the estimated future
    cash flows from the surface mining operations exceeded their
    carrying value.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cash
    and Cash Equivalents, Including Restricted Cash</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Parent provides cash as needed to support the Company&#146;s
    surface mining operations, including restricted cash used to
    collateralize reclamation bonds. Any excess cash collected by
    the Company at the end of each business day is transferred to
    the Parent&#146;s bank account. Consequently, the accompanying
    balance sheets do not include any cash balances. Transfers of
    cash between the Company and the Parent are classified as a
    financing activity in the statement of cash flows. At
    December&#160;31, 2008, pending the transfer of mining permits
    related to business acquisitions completed in July 2008,
    restricted certificates of deposit totaling $509,825 were owned
    by the Company and are included in the balance sheet at that
    date.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Trade
    Accounts Receivable</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Trade accounts receivables are recorded at the invoiced amount
    and do not bear interest. Customers are primarily investment
    grade companies and quasi-governmental agencies. While the
    Company is subject to credit risk from its trade accounts
    receivable, the Company manages its risk by providing credit
    terms on a case by case basis. As a result, the Company has not
    experienced any instances of nonpayment and does not currently
    require an allowance for doubtful accounts. Management monitors
    customers closely and will record an allowance if trade account
    balances become potentially uncollectible. Subsequent to
    September&#160;30, 2009 and December&#160;31, 2008, the Company
    has collected all of its trade accounts receivable at the
    applicable reporting dates.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-43
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Operations and Significant Accounting
    Policies&#160;(continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Inventory</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company accounts for coal inventories on a
    <FONT style="white-space: nowrap">first-in,</FONT>
    first-out basis and values these inventories at the lower of
    cost and net realizable value with cost determined using average
    cost per ton. Coal inventory values were $25.95 per ton at
    September&#160;30, 2009 and $22.62 per ton at December&#160;31,
    2008. At September&#160;30, 2009 and December&#160;31, 2008, the
    coal inventory was valued at net realizable value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company accounts for parts inventory using the original cost
    on a
    <FONT style="white-space: nowrap">first-in,</FONT>
    first-out basis. Parts inventory is included in other current
    assets and totaled $119,484 and $103,555 as of
    September&#160;30, 2009 and December&#160;31, 2008, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Property,
    Plant, and Equipment</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property, plant, and equipment are stated at cost. Depreciation
    is calculated on the straight-line basis with useful lives that
    range from 5 to 40&#160;years. Depreciation expense for the nine
    months ended September&#160;30, 2009 and the years ended
    December&#160;31, 2008 and 2007 was $4,352,339, $4,362,179, and
    $2,222,516, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The cost of assets sold, retired, or otherwise disposed of and
    the related accumulated depreciation are eliminated from the
    accounts and any resulting gain or loss is included in
    operations. Expenditures for maintenance and repairs are charged
    to expense as incurred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Consistent with FASB ASC 360, <I>Property Plant, and Equipment,
    </I>the Company evaluates long-lived assets for impairment when
    events or changes in circumstances indicate that their carrying
    amount may not be recoverable. This impairment testing is based
    on estimated future undiscounted cash flows to be realized from
    the use of the long-lived asset. These future cash flows are
    developed using assumptions that reflect the long-term operating
    plans given management&#146;s best estimate of future economic
    conditions, such as revenues, production costs, and reserve
    estimates. A change in these factors could result in a
    modification of the impairment calculation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Mine
    Development Costs</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mine development costs represent the costs incurred to prepare
    future mine sites for mining and are amortized on the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    method. The net book value of mine development costs was
    $2,650,129 and $529,112 at September&#160;30, 2009 and
    December&#160;31, 2008, respectively. Accumulated amortization
    of mine development costs was $471,125 and $505,902 at
    September&#160;30, 2009 and December&#160;31, 2008,
    respectively. Development costs amortized totaled $384,743,
    $665,243, and $455,508 for the nine months ended
    September&#160;30, 2009 and the years ended December&#160;31,
    2008 and 2007, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Mining
    Rights</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mining rights, which are rights to mine coal properties acquired
    through coal leases, are recorded at cost. Mining rights are
    amortized on the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    method. The net book value of mining rights totaled $13,867,610
    and $14,930,480 at September&#160;30, 2009 and December&#160;31,
    2008, respectively. Accumulated amortization of mining rights
    was $3,325,062 and $3,382,180 at September&#160;30, 2009 and
    December&#160;31, 2008, respectively. Mining rights amortization
    totaled $1,062,870, $1,619,121, and $1,386,955 for the nine
    months ended September&#160;30, 2009 and the years ended
    December&#160;31, 2008 and 2007, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2007, the Crittenden County Coal mining operation was
    closed due to uneconomical mining conditions. As a result of the
    closing, the Company recorded an asset impairment write down
    related to its mining rights of $2,873,055.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-44
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Operations and Significant Accounting
    Policies&#160;(continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Mineral
    Reserves</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mineral reserves, which are coal properties for which the
    Company owns the coal in place, are recorded at cost. At
    September&#160;30, 2009 and December&#160;31, 2008, the net book
    value of mineral reserves totaled $189,434 and was attributable
    to properties where the Company was not currently engaged in
    mining operations and, therefore, the assets were not currently
    being depleted.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Prepaid
    Royalties</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rights to leased coal lands are often acquired through royalty
    payments. Where royalty payments represent prepayments
    recoupable against production, they are recorded as a prepaid
    asset. As mining occurs on these leases, the prepayment is
    charged to cost of sales. Prepaid royalties were $188,602 and
    $216,147 at September&#160;30, 2009 and December&#160;31, 2008,
    respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Asset
    Retirement Obligations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FASB ASC
    <FONT style="white-space: nowrap">410-20,</FONT>
    <I>Asset Retirement Obligations</I>, addresses financial
    accounting and reporting for obligations associated with the
    retirement of tangible long-lived assets and the associated
    asset retirement costs. The Company&#146;s asset retirement
    obligation (ARO) liabilities primarily consist of spending
    estimates related to reclaiming surface land and support
    facilities in accordance with federal and state reclamation laws
    as defined by each mining permit.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenue
    Recognition</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Revenue is recognized when all of the following criteria are
    met: (1)&#160;persuasive evidence of an arrangement exists,
    (2)&#160;delivery has occurred or services have been rendered,
    (3)&#160;the seller&#146;s price to the buyer is fixed or
    determinable, and (4)&#160;collectability is reasonably assured.
    In the case of coal that is mined and sold, a specific sales
    contract is negotiated with each customer, which includes a
    fixed-price per ton, a delivery schedule, and terms of payment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Royalty
    Expense</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The majority of the coal that the Company mines is owned by
    other entities. The Company acquires the right to mine and sell
    the coal through various leases. These leases require the
    Company to pay a royalty to the owners of the land and the
    minerals being mined. Royalty expense for the nine months ended
    September&#160;30, 2009 and for the years ended
    December&#160;31, 2008 and 2007 was $2,688,647, $3,778,642, and
    $3,386,015, respectively, and is included in selling expenses in
    the statements of operations and comprehensive loss.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company files consolidated federal and state income tax
    returns with the Parent. Income tax expense for purposes of
    these combined financial statements is calculated on a separate
    return basis. Deferred income taxes are recorded by applying
    statutory tax rates in effect at the date of the balance sheet
    to differences between the book and tax basis of assets and
    liabilities. Due to the significantly large tax losses generated
    by the Company, management has recorded a valuation allowance
    against its total net deferred tax assets as they do not believe
    it is more-likely-than-not that these assets will be realized.
    The Company&#146;s income tax expense for the nine months ended
    September&#160;30, 2009, and the years ended December&#160;31,
    2008 and 2007, consisted of state taxes.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-45
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Operations and Significant Accounting
    Policies&#160;(continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Share-Based
    Compensation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Parent uses the fair value method for options, warrants, and
    restricted stock granted. The fair value of stock options and
    warrants is determined by the Black-Scholes option pricing model
    with assumptions for risk-free interest rates, dividend yields,
    volatility factors of the expected market price of the
    Parent&#146;s common shares and an expected life of the options
    and warrants. The fair value of the instruments granted is
    amortized over their vesting period. The share-based
    compensation expense recorded in these carved-out financial
    statements has been allocated to the Company based on the
    employees who have provided services to the Company during the
    applicable reporting periods and recorded as an expense in the
    statement of operations. The Parent&#146;s cost of providing
    these benefits is recorded as a contribution to the
    Company&#146;s equity.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Fair
    Value and Financial Instruments</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FASB ASC 820 defines fair value as the price that would be
    received to sell an asset or paid to transfer a liability in an
    orderly transaction between market participants at the
    measurement date. At September&#160;30, 2009 and
    December&#160;31, 2008, the fair values of restricted
    certificates of deposit, trade accounts receivable, trade
    accounts payable, and accrued liabilities approximated their
    carrying values because of the short-term nature of these
    financial instruments. At September&#160;30, 2009, the fair
    value of the Company&#146;s long-term debt, calculated using the
    present value of the scheduled debt payments, and using a credit
    adjusted risk free rate of 8.25%, was $20,843,900, compared to
    its carrying value at that date of $21,305,458. At
    December&#160;31, 2008, the fair value of the Company&#146;s
    long-term debt, calculated using the present value of the
    scheduled debt payments, and using a credit adjusted risk free
    rate of 6.75%, was $21,052,500, compared to its carrying value
    at that date of $21,173,790.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">New
    Accounting Standards Issued and Adopted</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In September 2009, the FASB issued Accounting Standards Update
    (ASU)
    <FONT style="white-space: nowrap">2009-06,</FONT>
    <I>Implementation Guidance on Accounting for Uncertainty in
    Income Taxes and Disclosure Amendments for Nonpublic
    Entities</I>. ASU
    <FONT style="white-space: nowrap">2009-06</FONT>
    amended guidance on certain aspects of FASB ASC 740, <I>Income
    Taxes</I>, including application to nonpublic entities, as well
    as application guidance on the accounting for income tax
    uncertainties for all entities. The amendments are applicable to
    all entities that apply FASB ASC 740 as well as those that
    historically had not, such as pass-through and tax-exempt
    <FONT style="white-space: nowrap">not-for-profit</FONT>
    entities. The amendments clarify that an entity&#146;s tax
    status as a pass-through or tax-exempt
    <FONT style="white-space: nowrap">not-for-profit</FONT>
    entity is a tax position subject to the recognition requirements
    of FASB ASC 740 and therefore these entities must use the
    recognition and measurement guidance in FASB ASC 740 when
    assessing their tax positions. The ASU
    <FONT style="white-space: nowrap">2009-06</FONT>
    amendments are effective for interim and annual periods ending
    after September&#160;15, 2009. The adoption of the ASU
    <FONT style="white-space: nowrap">2009-06</FONT>
    amendments for the nine months ended September&#160;30, 2009 did
    not have a material impact on the Company&#146;s financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the financial statements for the September&#160;30, 2009
    reporting period, the Company adopted amendments to FASB ASC
    805, <I>Business Combinations </I>(SFAS&#160;No.&#160;141R,
    <I>Business Combinations</I>), issued by the FASB in December
    2007. The FASB ASC 805 amendments apply to all business
    combinations and establish guidance for recognizing and
    measuring identifiable assets acquired, liabilities assumed,
    noncontrolling interests in the acquiree and goodwill. Most of
    these items are recognized at their full fair value on the
    acquisition date, including acquisitions where the acquirer
    obtains control but less than 100% ownership in the acquiree.
    The FASB ASC 805 amendments also require expensing restructuring
    and acquisition-related costs as incurred and establish
    disclosure requirements to enable the evaluation of the nature
    and financial effects of the business combination. Per FASB ASC
    <FONT style="white-space: nowrap">805-10-65-1,</FONT>
    these amendments to FASB ASC 805 are effective for business
    combinations with an acquisition date in fiscal years beginning
    after
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-46
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Nature of
    Operations and Significant Accounting
    Policies&#160;(continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    December&#160;15, 2008. The Company did not complete any
    business acquisitions during the nine months ended
    September&#160;30, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the financial statements for the September&#160;30, 2009
    reporting period, the Company adopted amendments to FASB ASC
    855, <I>Subsequent Events </I>(SFAS&#160;No.&#160;165,
    <I>Subsequent Events</I>), issued by the FASB in May 2009. The
    amendments to FASB ASC 855 establish the accounting for and
    disclosure of events that occur after the balance sheet date but
    before financial statements are issued or are available to be
    issued. The amendments to FASB ASC 855 also require disclosure
    of the date through which an entity has evaluated subsequent
    events and the basis for that date, that is, whether that date
    represents the date the financial statements were issued or were
    available to be issued. The Company evaluated subsequent events
    after the balance sheet date of September&#160;30, 2009 through
    December&#160;18, 2009.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">New
    Accounting Standards Issued and Not Yet Adopted</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In August 2009, the FASB issued ASU
    <FONT style="white-space: nowrap">2009-05,</FONT>
    <I>Measuring Liabilities at Fair Value</I>. The ASU
    <FONT style="white-space: nowrap">2009-05</FONT>
    amendments provide additional guidance on measuring the fair
    value of liabilities, as well as outline alternative valuation
    methods and a hierarchy for their use. The amendments also
    clarify that restrictions preventing the transfer of a liability
    should not be considered as a separate input or adjustment in
    the measurement of its fair value. The ASU
    <FONT style="white-space: nowrap">2006-05</FONT>
    amendments are effective as of the beginning of interim and
    annual reporting periods that begin after August&#160;26, 2009.
    The Company does not anticipate these requirements will have a
    material impact on its financial statements.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Preparation
    of Carved-Out Financial Statements</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following allocation policies have been used in the
    preparation of these carved-out financial statements. Unless
    otherwise noted, these policies have been consistently applied
    in the financial statements. In the opinion of management, the
    methods for allocating these costs are reasonable. It is not
    practicable to estimate the costs that would have been incurred
    by the Company if it had been operated on a stand-alone basis.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Specifically
    Identified Expenses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Costs related specifically to the Company have been identified
    and included in the statements of operations and comprehensive
    loss. These expenses include labor and benefits, mining
    supplies, equipment maintenance and reclamation costs. In
    addition, any costs incurred by the Parent which were
    specifically identifiable to a surface mining operation have
    been charged to the Company.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Shared
    Operating Expenses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historically, the Company has not allocated corporate general
    and administrative services to each operating division. These
    shared services included executive management, accounting,
    information services, engineering, and human resources. For the
    purposes of these carved-out financial statements, these costs
    have been allocated to the Company based primarily on a
    percentage of revenue.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Debt
    and Related Interest Expense</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Parent has funded the acquisition and operating activities
    of the Company, as well as its other operations, through equity
    offerings (including private placement, preferred stock
    offerings, and public stock offerings) and bank and finance
    company debt. Funds used by the Parent for acquisition of the
    Company have been recorded by the Parent as an investment in the
    Company. Funds subsequently provided to, or received
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-47
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">2.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Preparation
    of Carved-Out Financial Statements&#160;(continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    from, the Company after the initial acquisition of its assets
    have been recorded by the Parent in an &#147;intercompany
    account balance.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historically, the Parent has not charged or credited the Company
    for interest on funds provided to, or received from the Company.
    For the purpose of these carved-out financial statements,
    interest expense has been computed on the average intercompany
    account balance at the Parent&#146;s consolidated average
    borrowing rate and included in the Company&#146;s statements of
    operations and comprehensive loss. The intercompany balance has
    been contributed by the Parent to the Company at the end of each
    year and therefore has been included in the statement of group
    equity. Average borrowing rates utilized in this calculation
    were 6.9%, 8.4%, and 11.7% for the nine months ended
    September&#160;30, 2009 and the years ended December&#160;31,
    2008 and 2007, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Beginning in September 2007, the Company began executing debt
    agreements directly with equipment finance companies. Interest
    expense related to equipment financed debt has also been
    included in the carved-out statements.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Acquisitions</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">C&#038;R
    Coal Inc.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In July 2008, the Parent, through one of its surface mining
    subsidiaries, purchased all of the outstanding common shares of
    C&#038;R Coal Inc. (C&#038;R) for cash consideration of
    $2,051,000. In addition, under the terms of the agreement, the
    Company will pay the former owners a royalty of $0.60 per ton
    for each ton of coal sold from the C&#038;R mines. At the
    acquisition date, the current mining area, Beech Creek and Beech
    Creek South, contained approximately 450,000 reserve tons. The
    Company also acquired other leases in the transaction from
    C&#038;R and R&#038;G&#160;Leasing, LLC, a company that is
    affiliated with C&#038;R through common ownership. At the
    acquisition date, the Company estimated the leases contained
    approximately 1,500,000 tons of coal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The cost of the C&#038;R acquisition was allocated to the
    following identifiable net assets:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="86%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current assets and restricted certificates of deposit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,281,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mining equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    859,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mining rights and mine development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,387,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assumed liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,476,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,051,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to July 2008, the Parent operated and managed
    C&#038;R&#146;s mines under a management and administrative
    services agreement. Since the Parent did not own nor control
    C&#038;R, it did not consolidate its operating results prior to
    July 2008, and recorded funds invested and services provided in
    other assets and accounts receivable on its balance sheet.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Renfro
    Equipment, Inc.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In July 2008, the Parent, on behalf of the Company, purchased
    all of the outstanding common shares of Renfro Equipment, Inc.
    (Renfro) for total cash consideration of $1,129,000.
    Additionally, the Parent incurred $18,000 of closing costs. The
    purchase included all assets and liabilities of Renfro, except
    certain equipment and associated debt specifically excluded from
    the purchase. Based on exploration completed by the Parent,
    management estimated that Renfro controlled approximately
    1.5&#160;million tons of coal via lease at acquisition date.
    Additionally, if by July 2010, the Company acquires at least
    1.5&#160;million reserve tons as defined by Canadian Securities
    Administrators&#146; National Instrument
    <FONT style="white-space: nowrap">43-101</FONT> due
    to the direct efforts of the sellers (the Additional Reserves),
    the Company will pay the sellers $1,000,000 for the first
    1.5&#160;million tons of reserves,
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-48
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">3.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Acquisitions&#160;(continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    plus $0.50 per ton for each reserve ton in excess of
    1.5&#160;million. The purchase agreement defines a specific
    territory from which the Additional Reserves can be acquired.
    The acquisition of the Additional Reserves is on terms and
    conditions acceptable to the Company in its sole, reasonable
    discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The cost of the Renfro acquisition was allocated to the
    following identifiable net assets:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="86%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current assets and restricted certificates of deposit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    334,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mining equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    429,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mining rights and mine development costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,770,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assumed liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,386,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,147,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Charolais
    Corporation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In January 2007, the Parent acquired assets and shares of the
    Charolais Corporation and related entities. The purchase price
    paid to the seller was $21,735,000. In addition, the Parent
    incurred $189,000 of transaction costs related to the purchase
    for total consideration of $21,924,000. Included in the
    Charolais acquisition was the purchase of the Rock Crusher Fines
    (RCF) operation, which was not purchased on behalf of the
    Company. The RCF operation is not included in these carved-out
    financial statements as it was a fine coal recovery operation
    and all assets utilized at RCF were sold in 2007 and not
    included in the Company&#146;s operations. The portion of the
    Charolais purchase price attributed to the RCF operation was
    $6,844,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchase price was allocated as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Charolais<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Charolais<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Acquisition<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Acquisition<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Allocation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Allocation</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Excluding RCF</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Real property
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    557,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    557,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Plant and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,483,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,939,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mining rights and mineral reserves
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,705,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,405,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Asset retirement obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (821,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (821,000
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,924,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,080,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-49
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">4.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Property,
    Plant, and Equipment, Net</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Property, plant, and equipment consists of the following at
    September&#160;30, 2009 and December&#160;31, 2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Land
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    636,154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    599,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Building and improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    480,885
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Preparation plant
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,683,996
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,084,768
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mining equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,483,183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,886,694
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Loading and marine transport equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,775,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,775,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Office equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    355,557
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    370,450
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vehicles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65,965
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65,965
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59,480,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,807,955
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less accumulated depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,904,663
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,644,971
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    48,576,077
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45,162,984
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2008 and 2007, the Company sold several pieces of noncore
    property and equipment, generating gross proceeds of $683,912
    and $1,582,346, respectively. The Company recorded a loss of
    $1,012,779 related to these sales in 2008, and a gain of
    $742,086 in 2007. There were no significant sales of property
    and equipment for the nine months ended September&#160;30, 2009.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Asset
    Retirement Obligations</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company estimates its ARO liabilities for final reclamation
    and mine closure based upon detailed engineering calculations of
    the amount and timing of the future cash spending for a third
    party to perform the required work. Spending estimates are
    escalated for inflation and then discounted at the
    credit-adjusted risk-free rate, which ranged from 6.12% to 7.64%
    at September&#160;30, 2009 and December&#160;31, 2008. Total
    estimated undiscounted future cash spending related to the ARO
    liabilities totaled $4,900,000 at September&#160;30, 2009 with
    spending estimated to occur from 2009 to 2016. Total estimated
    undiscounted future cash spending related to the ARO liabilities
    totaled $5,142,000 at December&#160;31, 2008. The Company
    records an ARO asset associated with the discounted liability
    for final reclamation and mine closure as a mine development
    cost. The obligation and corresponding asset are recognized in
    the period in which the liability is incurred. The ARO asset is
    amortized on the
    <FONT style="white-space: nowrap">units-of-production</FONT>
    method over its expected life and the ARO liability is accreted
    to the projected spending date. As changes in estimates occur
    (such as mine plan revisions, changes in estimated costs or
    changes in timing of the performance of reclamation activities),
    the revisions to the obligation and asset are recognized at the
    appropriate credit-adjusted risk-free rate. The Company also
    recognizes an obligation for contemporaneous reclamation
    liabilities incurred as a result of surface mining.
    Contemporaneous reclamation consists primarily of grading,
    topsoil replacement, and revegetation of backfilled pit areas.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-50
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">5.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Asset
    Retirement Obligations&#160;(continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A progression of the reclamation liability recorded on the
    balance sheet is as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="71%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Nine Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Balance at beginning of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,324,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,757,353
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Liabilities acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,131,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Liabilities incurred
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    846,295
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accretion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    188,719
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    189,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Liabilities settled
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (832,936
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (919,568
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total asset retirement obligation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,526,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,324,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,627,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,958,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,898,278
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,366,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">6.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Debt</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Long-term debt consists of the following at September&#160;30,
    2009 and December&#160;31, 2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Bank notes payable, interest at 5.50% to 8.90%. Payments are
    made in monthly installments. The loans are collateralized by
    various pieces of equipment and mature April 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    47,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    105,109
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Equipment notes payable, interest at 5.25% to 8.75%. Payments
    are made in monthly installments. The loans are collateralized
    by related assets with a net book value of $31,184,000 as of
    September&#160;30, 2009 and have maturity dates from August 2010
    to March 2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,257,815
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,068,681
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,305,458
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,173,790
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,224,486
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,532,045
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,080,972
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,641,745
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expected maturities of notes payable based on years ending
    December 31 are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="85%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009 (remaining three months)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,013,455
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,147,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,366,999
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,604,101
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    173,243
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,305,458
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As previously discussed in Note&#160;1, on September&#160;30,
    2009, the Parent sold substantially all of its operating assets
    and operations associated with its surface coal mining
    operations in western Kentucky to Oxford. In conjunction with
    the transactions, Oxford paid off all the outstanding debt as of
    September&#160;30, 2009.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-51
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">7.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Income
    Taxes</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The components of income tax expense for the nine months ended
    September&#160;30, 2009 and the years ended December&#160;31,
    2008 and 2007 are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Nine Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,081
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,838
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    70,155
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The expense for income taxes includes federal and state income
    taxes currently payable or receivable and those deferred or
    prepaid because of temporary differences between the financial
    statement and the tax basis of assets and liabilities. The
    Company records income taxes under the liability method. Under
    this method, deferred income taxes are recognized for the
    estimated deferred tax effects of differences between the tax
    basis of assets and liabilities and their financial reporting
    amounts based on enacted laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At September&#160;30, 2009 and December&#160;31, 2008, the
    Company had deferred tax assets of approximately $28,862,000 and
    $20,263,000 and deferred tax liabilities of $12,471,000 and
    $10,761,000, respectively. The Company&#146;s deferred tax
    assets consist principally of net operating loss carryforwards,
    while deferred tax liabilities relate primarily to temporary
    timing differences for amortization of mining rights and
    depreciation. As a result of losses from operations, management
    has recorded a valuation allowance against the total net
    deferred tax asset as they do not believe it is
    more-likely-than-not these assets will be realized.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">8.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Major
    Customers</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the nine months ended September&#160;30, 2009 and the years
    ended December&#160;31, 2008 and 2007 the Company&#146;s
    concentration of major customers was as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Nine Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Number of customers whose sales each exceeded 10% of total
    revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Percentage of total revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounts receivable due at period end
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,349,485
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,410,395
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,285,240
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has never experienced nonpayment from any of these
    customers. All amounts due from these customers at
    September&#160;30, 2009 have subsequently been collected.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">9.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    and Contingent Liabilities</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the normal course of business, the Company makes various
    commitments and incurs certain contingent liabilities, including
    liabilities related to asset retirement obligations and
    financial obligations in connection with mining permits that are
    not reflected in the balance sheet. The Company does not
    anticipate any material losses as a result of these
    transactions. In accordance with Kentucky state law, the Company
    is required to post reclamation bonds to assure that reclamation
    work is completed. Outstanding reclamation bonds totaled
    approximately $12&#160;million at September&#160;30, 2009 and
    approximately $11&#160;million at December&#160;31, 2008. These
    bonds are secured by letters of credit or certificates of
    deposit issued by a bank equal to the amount of the outstanding
    reclamation bonds, and are typically provided by the Parent.
    However, at December&#160;31, 2008, pending the transfer of
    certain mining permits related to the C&#038;R and Renfro
    acquisitions, restricted certificates of deposit totaling
    $509,825 were held by the Company and included in the balance
    sheet. Subsequent to December&#160;31, 2008 these restricted
    certificates of deposit were replaced by letters of credit
    provided by the Parent.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-52
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">9.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    and Contingent Liabilities&#160;(continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A significant amount of the Company&#146;s coal reserves are
    controlled through leasing arrangements and noncancellable
    royalty lease agreements under which future minimum lease
    payments are due.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the ordinary course of business, the Company enters into
    contracts to purchase diesel fuel from local suppliers for
    physical delivery at specified prices. Pursuant to these
    contracts, the Company does not own a futures or options
    position in the purchased fuel. As of September&#160;30, 2009,
    the Company had executed purchase contracts for a total of
    1,890,000 gallons to be delivered in 2009 and 2010 at a total
    cost of $4,206,048, or an average weighted price of $2.23 per
    gallon.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, the Company entered into a master coal purchase and
    sale agreement (the Master Agreement) to purchase coal fines
    recovered and processed by Covol Fuels No.&#160;2, LLC (Covol)
    from two coal slurry reserve areas in Muhlenberg County,
    Kentucky. On July&#160;6, 2009, the Company executed an
    amendment to the Master Agreement (the Amended Master Agreement)
    revising the annual purchase and sale tonnage commitments. The
    term of the Amended Master Agreement runs through the exhaustion
    of the reserves (the Term). During the Term of the Amended
    Master Agreement, by July&#160;1 of each year, the Company and
    Covol will agree to the annual tonnage commitment (the
    Commitment) that Covol will produce and that the Company will
    purchase for the next calendar year. For the calendar year 2010
    the Commitment cannot be less than 360,000 tons and for
    subsequent years the Commitment cannot be less than 400,000
    tons. Additionally, the Company has the first right of refusal
    to purchase any tons produced by Covol in excess of the
    Commitment, but up to 720,000 tons annually.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In June 2009, the Company entered into a coal supply agreement
    with an Illinois Basin producer to purchase 20,000 tons of coal
    per month from July 2009 through December 2009. Upon mutual
    agreement of the parties to the coal supply agreement, the term
    of the agreement may be extended to December&#160;31, 2010.
    Subsequent to September&#160;30, 2009, this agreement was
    extended to June&#160;30, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of the Renfro Equipment Inc. acquisition in July 2008,
    the Company agreed that if, by July&#160;31, 2010, it acquires
    at least 1.5&#160;million reserve tons as defined by Canadian
    Securities Administrators&#146; National Instrument
    <FONT style="white-space: nowrap">43-101</FONT> (NI
    <FONT style="white-space: nowrap">43-101)</FONT> due
    to the direct efforts of the sellers (Additional Reserves), the
    Company will pay the sellers $1,000,000 for the first
    1.5&#160;million tons of reserves, plus $0.50 per ton for each
    reserve ton in excess of 1.5&#160;million. The acquisition
    closing documents define a specific territory from which the
    Additional Reserves can be acquired. The acquisition of the
    Additional Reserves must be on terms and conditions acceptable
    to the Company in its sole, reasonable discretion. As of
    September&#160;30, 2009, the sellers had provided several
    mineral leases to the Company. However, the analysis and
    drilling that is required to qualify these properties as reserve
    tons under the definition of NI
    <FONT style="white-space: nowrap">43-101</FONT> is in
    its early stages. Therefore, it is not yet probable that the
    sellers will deliver 1.5&#160;million reserve tons to the
    Company, so no liability has been currently accrued on the
    balance sheet to the sellers.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">10.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Stock
    Incentive Plans</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PCI adopted a shareholder-approved stock option plan (the 2008
    Plan) on May&#160;20, 2008, which became effective in June 2008.
    PCC had a stock incentive plan authorized by its Board of
    Directors in 2004 (the 2004 Plan) to grant options to its
    employees (including officers), directors, and consultants. In
    June 2008, each stock option issued under the 2004 Plan was
    cancelled and extinguished and the holder received a replacement
    option to purchase that number of common shares of PCI equal to
    the number of PCC common shares that the holder could purchase
    under the 2004 Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The 2008 Plan is designed to advance the interests of the
    Company by encouraging employees, officers, directors, and
    consultants to have equity participation in the Parent through
    the acquisition of common shares. The 2008 Plan has been used to
    grant options to the Company&#146;s employees, officers,
    directors, and
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-53
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">10.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Stock
    Incentive Plans&#160;(continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    consultants. Options granted under the 2008 Plan may be
    &#147;incentive stock options&#148; or &#147;nonqualified stock
    options.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For options granted under the 2008 Plan, the exercise price per
    common share is not to be less than the market price of the
    common shares at the time of the grant. The exercise period for
    each stock option is not to be more than ten years (five years
    in the case of an incentive stock option granted to a person who
    owns more than 10% of the issued and outstanding common shares
    of the Parent). Options may be granted subject to vesting
    requirements. Stock options granted under the 2004 Plan were
    generally subject to vesting provisions of 25% at the end of
    year one from the date of grant and then evenly over the
    following 48&#160;months. The options were granted at a price
    equal to 100% of the fair value of the Company&#146;s common
    shares on the date of grant and have a ten-year term.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless terminated earlier by the Parent&#146;s Board of
    Directors, the 2008 Plan will remain in effect until all options
    granted under the 2008 Plan have been exercised or forfeited, or
    have expired. However, no new options may be granted under the
    2008 Plan more than ten years from the date the Plan was
    originally adopted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Compensation cost of stock option grants is recognized
    straight-line over the options&#146; vesting periods.
    Compensation expense related to stock options for the nine
    months ended September&#160;30, 2009 and the years ended
    December&#160;31, 2008 and 2007 was $2,258,869, $4,388,941, and
    $813,454, respectively. Under the terms of the 2008 Plan, and as
    approved by the Board of Directors of the Parent, the sale of
    the surface mining assets to Oxford caused all options
    outstanding under the 2008 Plan to become fully vested and all
    remaining unrecognized compensation expense totaling
    approximately $547,000 was charged to the statement of
    operations and comprehensive loss in the third quarter 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The options&#146; fair value was determined using the
    Black-Scholes option-pricing model. Expected volatilities are
    based on comparable company historical share price movement and
    other factors. The cost relating to the stock-based compensation
    plans is included in general and administrative expenses in the
    accompanying combined statements of operations and comprehensive
    loss.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="44%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2009<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2008<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Options</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted-average fair value per share of options granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.08 per share
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.64 per share
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.73 per share
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assumptions (weighted-average):
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Risk free interest rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.75
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.98
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.37
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Expected dividend yield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Expected volatility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Expected option life (in years)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">11.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Sales
    Contract Termination</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;3, 2009, the Company entered into a mutual release
    and settlement agreement with one of its customers to terminate
    a coal supply agreement for delivery of coal in 2009 and 2010
    (the 2009/2010 Supply Agreement). In consideration for
    terminating the 2009/2010 Supply Agreement, the Company paid the
    customer $3,000,000 in cash. The payment relieved the Company of
    the obligation to deliver approximately 970,000 tons of coal,
    470,000 in 2009 and 500,000 in 2010. In addition, the Company
    agreed to make up in 2009 approximately 170,000 tons of
    shipments that were not delivered in 2008 under a separate coal
    supply agreement dated January&#160;1, 2008 (the 2008 Supply
    Agreement). In return for fulfilling the 2008 Supply
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-54
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL -->
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes to
    Combined Financial
    Statements&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">


</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">11.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Sales
    Contract Termination&#160;(continued)</FONT></B>
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Agreement, the customer agreed to change the guaranteed monthly
    average BTU specification from 11,500 to 11,200. The $3,000,000
    payment has been charged to the statement of operations and
    comprehensive loss.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">12.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Defined
    Contribution Plan</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has a retirement savings trust plan in effect for
    substantially all full-time employees. The Plan also contains a
    deferred salary arrangement under IRC Section&#160;401(k). Under
    the deferred salary arrangement, employees can contribute up to
    100% of their earnings and the Company may match a portion of
    the employee contributions. The Company paid and charged to
    operations Plan contributions of approximately $497,000,
    $621,000, and $508,000 for the nine months ended
    September&#160;30, 2009 and the years ended December&#160;31,
    2008 and 2007, respectively.
</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">13.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Related-Party
    Transactions</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company is wholly owned by the Parent and its subsidiaries.
    The Parent has allocated certain overhead costs associated with
    general and administrative services, including executive
    management, accounting, information services, engineering, and
    human resources support to the Company. These overhead costs
    were allocated based primarily on a percentage of revenue, which
    management believes is reasonable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Historically, interest costs related to intercompany debt have
    not been charged or credited to the Parent or the Company. For
    the purpose of these carved-out financial statements, interest
    expense has been computed on the average intercompany account
    balance at the Parent&#146;s consolidated average borrowing rate
    and included in the carved-out statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Allocated overhead costs and interest expense on intercompany
    debt included in the statement of operations are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Nine Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Year Ended<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>September&#160;30,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>December&#160;31,<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Overhead costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,947,484
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,362,888
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,170,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,363,605
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    755,592
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (159,577
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL,n -->
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">14.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Subsequent
    Events</FONT></B>
</TD>
</TR>

</TABLE>
<!-- XBRL,body -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On November&#160;4, 2009, the Company received a state mining
    permit from the Kentucky Department of Natural Resources for its
    Highway 431 reserve. With this permit, the Company has secured
    all of the necessary permits required to begin mining on the
    Highway 431 property in Muhlenberg County, Kentucky.
</DIV>
<!-- /XBRL,ns -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-55
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='261'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;A<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Third
    Amended and Restated Agreement<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">of
    Limited Partnership of Oxford Resource Partners, LP</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    [to come]
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='262'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;B<BR>
    </A> <BR>
    Glossary of Terms</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>adjusted operating surplus:</I>&#160;&#160;Adjusted operating
    surplus, with respect to any period, consists of:
    (i)&#160;operating surplus generated with respect to that
    period; less (ii)&#160;any net decrease in cash reserves for
    operating expenditures with respect to that period not relating
    to an operating expenditure made with respect to that period;
    plus (iii)&#160;any net decrease made in subsequent periods in
    cash reserves for operating expenditures initially established
    with respect to that period to the extent such decrease results
    in a reduction in adjusted operating surplus in subsequent
    periods; plus (iv)&#160;any net increase in cash reserves for
    operating expenditures with respect to that period required by
    any debt instrument for the repayment of principal, interest or
    premium.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>available cash:</I>&#160;&#160;Available cash generally
    means, for any quarter, the sum of (i)&#160;all cash and cash
    equivalents on hand at the end of the quarter; plus,
    (ii)&#160;if our general partner so determines, all or any
    portion of the cash on hand on the date of determination of
    available cash for the quarter; less the amount of cash reserves
    established by our general partner at the date of determination
    of available cash for the quarter to (x)&#160;provide for the
    proper conduct of our business (including reserves for our
    future capital expenditures and anticipated future credit needs)
    subsequent to that quarter; (y)&#160;comply with applicable law,
    any of our debt instruments or other agreements; or
    (z)&#160;provide funds for distributions to our unitholders and
    to our general partner for any one or more of the next four
    quarters.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>base-load power plants:</I>&#160;&#160;The electrical
    generation facilities used to meet some or all of a given
    region&#146;s continuous energy demand and produce energy at a
    constant rate.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Btu:</I>&#160;&#160;British thermal unit, or Btu, is the
    amount of heat required to raise the temperature of one pound of
    water one degree Fahrenheit.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>capital account:</I>&#160;&#160;The capital account
    maintained for a partner under the partnership agreement. The
    capital account in respect of a general partner unit, a common
    unit, a subordinated unit, an incentive distribution right or
    any other partnership interest will be the amount which that
    capital account would be if that general partner unit, common
    unit, subordinated unit, incentive distribution right or other
    partnership interest were the only interest in Oxford Resource
    Partners, LP held by a partner.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>capital surplus:</I>&#160;&#160;All amounts of available cash
    distributed by Oxford Resource Partners, LP on any date from any
    source will be deemed to be operating surplus until the sum of
    all amounts of available cash previously distributed to the
    partners equals operating surplus from the closing date of this
    offering through the close of the immediately preceding quarter.
    Any remaining amounts of available cash distributed on such date
    will be deemed &#147;capital surplus.&#148;
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>closing price:</I>&#160;&#160;For common units, the last sale
    price on a day, regular way, or in case no sale takes place on
    that day, the average of the closing bid and asked prices on
    that day, regular way, as reported in the principal consolidated
    transaction reporting system for securities listed on the
    principal national securities exchange on which the common units
    are listed. If the common units are not listed on any national
    securities exchange, the last quoted price on that day. If no
    quoted price exists, the average of the high bid and low asked
    prices on that day in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market, as reported by the New York Stock Exchange or any other
    system then in use. If on any day the common units are not
    quoted by any organization of that type, the average of the
    closing bid and asked prices on that day as furnished by a
    professional market maker making a market in the common units
    selected by our general partner. If on that day no market maker
    is making a market in the common units, the fair value of the
    common units on that day as determined by our general partner.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>common unit arrearage:</I>&#160;&#160;The amount by which the
    minimum quarterly distribution for a quarter during the
    subordination period exceeds the distribution of available cash
    from operating surplus actually made for that quarter on a
    common unit, cumulative for that quarter and all prior quarters
    during the subordination period.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>compliance coal:</I>&#160;&#160;A coal or a blend of coals
    that meets sulfur dioxide emission standards for air quality
    without the need for flue gas desulfurization.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>current market price:</I>&#160;&#160;For any class of units
    as of any date, the average of the daily closing prices for the
    20 consecutive trading days immediately prior to that date.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>dozer:</I>&#160;&#160;A large, powerful tractor having a
    vertical blade at the front end for moving earth, rocks, etc.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>GAAP:</I>&#160;&#160;Generally accepted accounting principles
    in the United States.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>highwall:</I>&#160;&#160;The unexcavated face of exposed
    overburden and coal in a surface mine or in a face or bank on
    the uphill side of a contour mine excavation.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>incentive distribution right:</I>&#160;&#160;A non-voting
    limited partner interest initially issued to the general
    partner. An incentive distribution right will confer upon its
    holder only the rights and obligations specifically provided in
    the partnership agreement for incentive distribution rights.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>incentive distributions:</I>&#160;&#160;The distributions of
    available cash from operating surplus made to holders of the
    incentive distribution rights.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>industrial boilers:</I>&#160;&#160;Closed vessels that use a
    fuel source to heat water or generate steam for industrial
    heating and humidification applications.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>interim capital transactions:</I>&#160;&#160;The following
    transactions: (i)&#160;borrowings, (ii)&#160;sales of equity and
    debt securities, (iii)&#160;sales or other dispositions of
    assets outside the ordinary course of business,
    (iv)&#160;capital contributions received, (v)&#160;corporate
    reorganizations or restructurings and (vi)&#160;the termination
    of interest rate hedge contracts or commodity hedge contracts
    prior to the termination date specified therein (provided that
    cash receipts from any such termination will be included in
    operating surplus in equal quarterly installments over the
    remaining scheduled life of such contract).
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>limestone:</I>&#160;&#160;A rock predominantly composed of
    the mineral calcite (calcium carbonate (CaCO2)).
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>metallurgical coal:</I>&#160;&#160;The various grades of coal
    suitable for carbonization to make coke for steel manufacture.
    Its quality depends on four important criteria: volatility,
    which affects coke yield; the level of impurities including
    sulfur and ash, which affects coke quality; composition, which
    affects coke strength; and basic characteristics, which affect
    coke oven safety. Metallurgical coal typically has a
    particularly high Btu but low ash and sulfur content.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>operating expenditures:</I>&#160;&#160;All of our cash
    expenditures (or our proportionate share of expenditures in the
    case of subsidiaries that are not wholly owned), including, but
    not limited to, taxes, reimbursements of expenses to our general
    partner, interest payments, payments made in the ordinary course
    of business under interest rate hedge contracts and commodity
    hedge contracts, estimated maintenance capital expenditures and
    non-pro rata repurchases of units (other than those made with
    the proceeds of an interim capital transaction), provided that
    operating expenditures will not include: payments (including
    prepayments and prepayment penalties) of principal of and
    premium on indebtedness; expansion capital expenditures; actual
    maintenance capital expenditures; payment of transaction
    expenses (including taxes) relating to interim capital
    transactions; or distributions to partners.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>operating surplus:</I>&#160;&#160;The total of
    $&#160;&#160;&#160;&#160;&#160;&#160;million; plus all of our
    cash receipts after the closing of this offering, excluding cash
    from interim capital transactions; less all of our operating
    expenditures after the closing of this offering; less the amount
    of cash reserves established by our general partner prior to the
    date of determination of available cash to provide funds for
    future operating expenditures. Operating surplus does not
    reflect actual cash on hand that is available for distribution
    to our unitholders.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>probable (indicated) reserves:</I>&#160;&#160;Reserves for
    which quantity and grade
    <FONT style="white-space: nowrap">and/or</FONT>
    quality are computed from information similar to that used for
    proven (measured) reserves, but the sites for inspection,
    sampling, and measurement are farther apart or are otherwise
    less adequately spaced. The degree of assurance, although lower
    than that for proven (measured) reserves, is high enough to
    assume continuity between points of observation.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>proven (measured) reserves:</I>&#160;&#160;Reserves for which
    (i)&#160;quantity is computed from dimensions revealed in
    outcrops, trenches, workings or drill holes; (ii)&#160;grade
    <FONT style="white-space: nowrap">and/or</FONT>
    quality are computed from the results of detailed sampling; and
    (iii)&#160;the sites for inspection, sampling and measurement
    are spaced so closely and the geologic character is so well
    defined that size, shape, depth and mineral content of reserves
    are well-established.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>reclamation:</I>&#160;&#160;The restoration of mined land to
    original contour, use or condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>reserve:</I>&#160;&#160;That part of a mineral deposit that
    could be economically and legally extracted or produced at the
    time of the reserve determination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>scrubbed power plant:</I>&#160;&#160;A power plant that uses
    scrubbers to clean the gases that pass through its smokestacks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>scrubbers:</I>&#160;&#160;Air pollution control devices that
    can be used to remove some particulates and chemical compounds
    from industrial exhaust streams.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>selective catalytic reduction, or SCR,
    device:</I>&#160;&#160;A means of converting nitrogen oxides,
    also referred to as NOx, with the aid of a catalyst into
    diatomic nitrogen, N2, and water, H2O.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>spoil-piles:</I>&#160;&#160;Earth and rock removed from a
    coal deposit and temporarily stored during excavation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>steam coal:</I>&#160;&#160;Coal used by power plants and
    industrial steam boilers to produce electricity, steam or both.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>subordination period:</I>&#160;&#160;The subordination period
    will begin upon the date of this offering and will extend until
    the first business day of any quarter beginning after a date
    determined by the conflicts committee of the board of directors
    of our general partner, that each of the following tests are
    met: (i)&#160;distributions of available cash from operating
    surplus on each of the outstanding common units, subordinated
    units and general partner units equaled or exceeded the minimum
    quarterly distribution for each of the three consecutive,
    non-overlapping four-quarter periods immediately preceding that
    date; (ii)&#160;the &#147;adjusted operating surplus&#148;
    generated during each of the three consecutive, non-overlapping
    four-quarter periods immediately preceding that date equaled or
    exceeded the sum of the minimum quarterly distributions on all
    of the outstanding common units, subordinated units and general
    partner units during those periods on a fully diluted basis; and
    (iii)&#160;there are no arrearages in payment of the minimum
    quarterly distribution on the common units. Notwithstanding the
    foregoing, the subordination period shall terminate and all of
    the subordinated units will convert into common units on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis if each of the following occurs: (i)&#160;distributions of
    available cash from operating surplus on each of the outstanding
    common units, subordinated units and general partner units
    equaled or exceeded 150% of the minimum quarterly distribution
    for each calendar quarter in the immediately preceding
    four-quarter period; (ii)&#160;the &#147;adjusted operating
    surplus&#148; generated during each calendar quarter in the
    immediately preceding four-quarter period equaled or exceeded
    150% of the minimum quarterly distribution on each of the
    outstanding common units, subordinated units and general partner
    units during that period on a fully diluted basis; and
    (iii)&#160;there are no arrearages in payment of the minimum
    quarterly distributions on the common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>tipple:</I>&#160;&#160;A structure where coal is cleaned and
    loaded in railroad cars or trucks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>total maximum daily load:</I>&#160;&#160;A calculation of the
    maximum amount of a pollutant that a body of water can receive
    per day and still safely meet water quality standards.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>units:</I>&#160;&#160;Refers to both common units and
    subordinated units.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h69756h6975605.gif" alt="Oxford LOGO"><FONT style="font-family: Arial, Helvetica">
    </FONT>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt; font-family: Arial, Helvetica">Oxford
    Resource Partners, LP</FONT></B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 16pt; font-family: Arial, Helvetica">Common
    Units</FONT></B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 16pt; font-family: Arial, Helvetica">Representing
    Limited Partner Interests</FONT></B>
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 12pt; font-family: Arial, Helvetica">Prospectus
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 12pt; font-family: Arial, Helvetica">&#160;&#160;&#160;&#160;&#160;,
    2010
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 21%; border-bottom: 1pt solid #000000"></CENTER>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 20pt; font-family: Arial, Helvetica">Barclays
    Capital</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 20pt; font-family: Arial, Helvetica">Citi</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-family: Arial, Helvetica">Until&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2010 (25 days after the date of this prospectus), all dealers
    that buy, sell or trade our common units, whether or not
    participating in this offering, may be required to deliver a
    prospectus. This is in addition to the dealers&#146; obligation
    to deliver a prospectus when acting as underwriters and with
    respect to their unsold allotments or subscriptions.
    </FONT>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    NOT REQUIRED IN THE PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;13.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Expenses of Issuance and Distribution.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Set forth below are the expenses (other than the underwriting
    discount) expected to be incurred in connection with the
    issuance and distribution of the securities registered hereby.
    With the exception of the SEC registration fee, the FINRA filing
    fee and the NYSE listing fee, the amounts set forth below are
    estimates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="91%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    SEC registration fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,825
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    FINRA filing fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    NYSE listing fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Printing and engraving expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fees and expenses of legal counsel
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounting fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Transfer agent fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Miscellaneous
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    To be provided by amendment.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;14.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Directors and Officers.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The section of the prospectus entitled &#147;The Partnership
    Agreement&#160;&#151; Indemnification&#148; discloses that we
    will generally indemnify officers, directors and affiliates of
    our general partner to the fullest extent permitted by the law
    against all losses, claims, damages or similar events and is
    incorporated herein by this reference. Reference is also made to
    the underwriting agreement to be filed as an exhibit to this
    registration statement, which provides for the indemnification
    of Oxford Resource Partners,&#160;LP and our general partner,
    their officers and directors, and any person who controls Oxford
    Resource Partners,&#160;LP and our general partner, including
    indemnification for liabilities under the Securities Act.
    Subject to any terms, conditions or restrictions set forth in
    the partnership agreement,
    <FONT style="white-space: nowrap">Section&#160;17-108</FONT>
    of the Delaware Revised Uniform Limited Partnership Act empowers
    a Delaware limited partnership to indemnify and hold harmless
    any partner or other person from and against all claims and
    demands whatsoever. As of the consummation of this offering, the
    general partner of the registrant will maintain directors and
    officers liability insurance for the benefit of its directors
    and officers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;15.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Recent
    Sales of Unregistered Securities.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;27, 2007, in connection with the formation of the
    partnership, we received (1)&#160;a contribution of
    approximately $35.7&#160;million in cash from AIM Oxford in
    exchange for the issuance of 3,185,000 Class&#160;B common units
    to AIM Oxford, (2)&#160;a contribution of approximately
    $19.2&#160;million in equity in Oxford Mining Company from
    C&#038;T Coal in exchange for cash and the issuance of 1,715,000
    Class&#160;B common units to C&#038;T Coal and (3)&#160;a
    contribution of approximately $1.1&#160;million in cash from
    Oxford Resources GP, LLC in exchange for the issuance to Oxford
    Resources GP, LLC of 100,000 general partner units and the
    incentive distribution rights, which rights will become
    effective upon an initial public offering. These transactions
    were exempt from registration under Section&#160;4(2) of the
    Securities Act of 1933. The number of units set forth above
    reflect a 5,000 to 1 units split that was authorized by our
    general partner on October&#160;23, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On March&#160;27, 2008, we entered into a contribution agreement
    with Oxford Resources GP, LLC and AIM Oxford. Pursuant to this
    contribution agreement, we received a contribution of
    approximately $8.8&#160;million from AIM Oxford as consideration
    for the issuance to AIM Oxford of 787,500 Class&#160;B common
    units. We also received a contribution of approximately $180,000
    from Oxford Resources GP, LLC as consideration for
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the issuance to Oxford Resources GP, LLC of approximately 16,071
    general partner units. These transactions were exempt from
    registration under Section&#160;4(2) of the Securities Act of
    1933.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;26, 2008, we entered into a contribution
    agreement with Oxford Resources GP, LLC, C&#038;T Coal and AIM
    Oxford. Pursuant to this contribution agreement, we received a
    contribution of approximately $686,000 from C&#038;T Coal and a
    contribution of $1.3&#160;million from AIM Oxford as
    consideration for the issuance to C&#038;T Coal and AIM Oxford
    of 61,250 Class&#160;B common units and 113,750 Class&#160;B
    common units, respectively. We also received a contribution of
    approximately $40,000 from Oxford Resources GP, LLC as
    consideration for the issuance to Oxford Resources GP, LLC of
    approximately 3,571 general partner units. These transactions
    were exempt from registration under Section&#160;4(2) of the
    Securities Act of 1933.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;28, 2009, we entered into a contribution
    agreement with C&#038;T Coal and AIM Oxford. Pursuant to this
    contribution agreement, we received a contribution of
    approximately $1.1&#160;million from C&#038;T Coal and a
    contribution of approximately $2.0&#160;million from AIM Oxford
    as consideration for the issuance to C&#038;T Coal and AIM
    Oxford of 35 deferred participation units and 65 deferred
    participation units, respectively. These transactions were
    exempt from registration under Section&#160;4(2) of the
    Securities Act of 1933.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;28, 2009, we entered into a contribution and
    conversion agreement with Oxford Resources GP, LLC, C&#038;T
    Coal and AIM Oxford. Pursuant to this contribution and
    conversion agreement, we received a contribution of
    approximately $1.5&#160;million from C&#038;T Coal and a
    contribution of approximately $6.9&#160;million from AIM Oxford
    as consideration for the issuance to C&#038;T Coal and AIM
    Oxford of 84,337 Class&#160;B common units and 393,575
    Class&#160;B common units, respectively. We also received a
    contribution of approximately $231,224 from Oxford Resources GP,
    LLC as consideration for the issuance to Oxford Resources GP,
    LLC of approximately 13,266 general partner units. In connection
    with the execution of this contribution and conversion
    agreement, C&#038;T Coal and AIM Oxford elected to convert their
    deferred participation units into approximately 60,241
    Class&#160;B common units and approximately 111,876 Class&#160;B
    common units, respectively. These transactions were exempt from
    registration under Section&#160;4(2) of the Securities Act of
    1933.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;16.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Exhibits
    and Financial Statement Schedules.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The following documents are filed as exhibits to this
    registration statement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="88%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Underwriting Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certificate of Limited Partnership of Oxford Resource Partners,
    LP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .2**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Third Amended and Restated Agreement of Limited
    Partnership of Oxford Resource Partners, LP  (included as
    <U>Appendix A</U> to the Prospectus)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Latham &#038; Watkins LLP as to the legality of the
    securities being registered
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Latham &#038; Watkins LLP relating to tax matters
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Credit Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Investors&#146; Rights Agreement, dated August&#160;24, 2007, by
    and among Oxford Resource Partners, LP, Oxford Resources GP,
    LLC, AIM Oxford Holdings, LLC, C&#038;T Coal, Inc., Charles C.
    Ungurean and Thomas T. Ungurean
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .3**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Oxford Resources GP, LLC and
    Michael B. Gardner
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .4**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Oxford Resources GP, LLC and
    Jeffrey M. Gutman
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .5**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Oxford Resources GP, LLC and
    Gregory J. Honish
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .6**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Oxford Resources GP, LLC and
    Charles C. Ungurean
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .7**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Oxford Resources GP, LLC and Thomas
    T. Ungurean
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .8**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Michael B. Gardner
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .9**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Jeffrey M. Gutman
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .10**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Gregory J. Honish
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .11**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Denise M. Maksimoski
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .12**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Oxford Resource Partners, LP Long-Term Incentive Plan, as amended
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .13**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Long-Term Incentive Plan Grant Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .14**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Non-Employee Director Compensation Plan
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="88%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .15**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Non-Employee Director Compensation Plan Grant Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .16**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Acquisition Agreement, dated August&#160;14, 2009, by and among
    Oxford Mining Company, LLC, Phoenix Coal Inc., Phoenix Coal
    Corporation and Phoenix Newco, LLC
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    List of Subsidiaries of Oxford Resource Partners, LP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Grant Thornton LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Ernst &#038; Young LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .3*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of John T. Boyd Company
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .4**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Latham &#038; Watkins LLP (contained in Exhibit 5.1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .5**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Latham &#038; Watkins LLP (contained in Exhibit 8.1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Powers of Attorney (included on the signature page)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Filed herewith.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    ** </TD>
    <TD></TD>
    <TD valign="bottom">
    To be filed by amendment.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Financial Statements Schedules.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;17.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Undertakings.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned registrant hereby undertakes to provide to the
    underwriters at the closing specified in the underwriting
    agreement certificates in such denominations and registered in
    such names as required by the underwriters to permit prompt
    delivery to each purchaser.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Insofar as indemnification for liabilities arising under the
    Securities Act of 1933&#160;may be permitted to directors,
    officers and persons controlling the registrant pursuant to the
    foregoing provisions, the registrant has been informed that in
    the opinion of the Securities and Exchange Commission such
    indemnification is against public policy as expressed in the Act
    and is, therefore, unenforceable. In the event that a claim for
    indemnification against such liabilities (other than the payment
    by the registrant of expenses incurred or paid by a director,
    officer or controlling person of the registrant in the
    successful defense of any action, suit or proceeding) is
    asserted by such director, officer or controlling person in
    connection with the securities being registered, the registrant
    will, unless in the opinion of its counsel the matter has been
    settled by controlling precedent, submit to a court of
    appropriate jurisdiction the question of whether or not such
    indemnification by it is against public policy as expressed in
    the Securities Act of 1933 and will be governed by the final
    adjudication of such issue.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned registrant hereby undertakes that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;For purposes of determining any liability under the
    Securities Act of 1933, the information omitted from the form of
    prospectus filed as part of this registration statement in
    reliance upon Rule&#160;430A and contained in a form of
    prospectus filed by the registrant pursuant to
    Rule&#160;424(b)(1) or (4)&#160;or 497(h) under the Securities
    Act of 1933 shall be deemed to be part of this registration
    statement as of the time it was declared effective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 5%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;For the purpose of determining any liability under the
    Securities Act of 1933, each post-effective amendment that
    contains a form of prospectus shall be deemed to be a new
    registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial bona fide offering thereof.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    II-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, the
    registrant has duly caused this Registration Statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Houston, State of Texas, on
    March&#160;24, 2010.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    OXFORD RESOURCE PARTNERS, LP,
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    Oxford Resources GP, LLC<BR>
    its General Partner
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="53%"></TD>
    <TD width="4%"></TD>
    <TD width="43%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Jeffrey
    M. Gutman</DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 57%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV align="left" style="margin-left: 57%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Jeffrey M. Gutman
</DIV>

<DIV align="left" style="margin-left: 57%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Senior Vice President, Chief Financial Officer and Treasurer
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each person whose signature appears below appoints Michael B.
    Gardner and Jeffrey M. Gutman, and each of them, either of whom
    may act without the joinder of the other, as his true and lawful
    attorneys-in-fact and agents, with full power of substitution
    and resubstitution, for him and in his name, place and stead, in
    any and all capacities, to sign any and all amendments
    (including post-effective amendments) to this Registration
    Statement and any Registration Statement (including any
    amendment thereto) for this offering that is to be effective
    upon filing pursuant to Rule&#160;462(b) under the Securities
    Act of 1933 and to file the same, with all exhibits thereto, and
    all other documents in connection therewith, with the Securities
    and Exchange Commission, granting unto said attorneys-in-fact
    and agents full power and authority to do and perform each and
    every act and thing requisite and necessary to be done, as fully
    to all intents and purposes as he might or would do in person,
    hereby ratifying and confirming all that said attorneys-in-fact
    and agents or either of them or their or his substitute and
    substitutes, may lawfully do or cause to be done by virtue
    hereof.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, this
    Registration Statement has been signed below by the following
    persons in their indicated capacities, which are with the
    general partner of the registrant, on March&#160;24, 2010.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="56%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Signature</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="line-height: 13pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;George
    E. McCown</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>George
    E. McCown
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chairman of the Board
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;Charles
    C. Ungurean</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Charles
    C. Ungurean
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Director, President and Chief Executive Officer<BR>
    (principal executive officer)
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;Jeffrey
    M. Gutman</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Jeffrey
    M. Gutman
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Senior Vice President and Chief Financial Officer<BR>
    (principal financial officer)
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;Denise
    M. Maksimoski</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Denise
    M. Maksimoski
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Senior Director of Accounting<BR>
    (principal accounting officer)
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;Brian
    D. Barlow</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Brian
    D. Barlow
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;Matthew
    P. Carbone</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Matthew
    P. Carbone
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
<TR valign="bottom" style="line-height: 13pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%">/s/&#160;&#160;Gerald
    A. Tywoniuk</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Gerald
    A. Tywoniuk
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;INDEX</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="88%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Underwriting Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Certificate of Limited Partnership of Oxford Resource Partners,
    LP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3
</TD>
<TD nowrap align="left" valign="top">
    .2**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Third Amended and Restated Agreement of Limited
    Partnership of Oxford Resource Partners, LP  (included as
    <U>Appendix A</U> to the Prospectus)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Latham &#038; Watkins LLP as to the legality of the
    securities being registered
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Latham &#038; Watkins LLP relating to tax matters
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Credit Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .2**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Investors&#146; Rights Agreement, dated August&#160;24, 2007, by
    and among Oxford Resource Partners, LP, Oxford Resources GP,
    LLC, AIM Oxford Holdings, LLC, C&#038;T Coal, Inc., Charles C.
    Ungurean and Thomas T. Ungurean
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .3**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Oxford Resources GP, LLC and
    Michael B. Gardner
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .4**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Oxford Resources GP, LLC and
    Jeffrey M. Gutman
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .5**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Oxford Resources GP, LLC and
    Gregory J. Honish
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .6**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Oxford Resources GP, LLC and
    Charles C. Ungurean
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .7**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employment Agreement between Oxford Resources GP, LLC and Thomas
    T. Ungurean
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .8**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Michael B. Gardner
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .9**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Jeffrey M. Gutman
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .10**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Gregory J. Honish
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .11**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Denise M. Maksimoski
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .12**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Oxford Resource Partners, LP Long-Term Incentive Plan, as amended
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .13**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Long-Term Incentive Plan Grant Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .14**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Non-Employee Director Compensation Plan
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .15**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Non-Employee Director Compensation Plan Grant Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .16**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Acquisition Agreement, dated August&#160;14, 2009, by and among
    Oxford Mining Company, LLC, Phoenix Coal Inc., Phoenix Coal
    Corporation and Phoenix Newco, LLC
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    List of Subsidiaries of Oxford Resource Partners, LP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Grant Thornton LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Ernst &#038; Young LLP
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .3*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of John T. Boyd Company
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .4**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Latham &#038; Watkins LLP (contained in Exhibit 5.1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .5**
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Latham &#038; Watkins LLP (contained in Exhibit 8.1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Powers of Attorney (included on the signature page)
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    &#160;&#160;* </TD>
    <TD></TD>
    <TD valign="bottom">
    Filed herewith.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    ** </TD>
    <TD></TD>
    <TD valign="bottom">
    To be filed by amendment.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    II-5
</DIV><!-- END PAGE WIDTH -->
</BODY>
</HTML>
[{"type": "S-1", "sequence": "1", "filename": "h69756sv1.htm", "description": "FORM S-1", "secsgml_size_bytes": 3168232}]
{"company-data": {"conformed-name": "Oxford Resource Partners LP", "cik": "0001412347", "irs-number": "000000000", "state-of-incorporation": "DE"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-165662", "film-number": "10701645"}, "business-address": {"street1": "544 Chestnut Str", "city": "Coshocton", "state": "OH", "zip": "43812", "phone": "740-622-6302"}, "mail-address": {"street1": "544 Chestnut Str", "city": "Coshocton", "state": "OH", "zip": "43812"}}
sv1
Table of Contents
As filed with
    the Securities and Exchange Commission on March 24,
    2010
Registration
No. 333-
UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
Washington, D.C.
    20549
Form S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF
    1933
Oxford Resource Partners,
    LP
(Exact Name of Registrant as
    Specified in Its Charter)
Delaware
1221
77-10695453
(State or Other Jurisdiction of
    Incorporation or
Organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer Identification
    Number)
544 Chestnut Street
P.O. Box 427
Coshocton, OH 43812
Phone:
(Address, Including Zip Code,
    and Telephone Number,
Including Area Code, of
    Registrant's Principal Executive Offices)
Jeffrey M. Gutman
Senior Vice President,
Chief Financial Officer and
    Treasurer
544 Chestnut Street
P.O. Box 427
Coshocton, OH 43812
Phone:
(Name, Address, Including Zip
    Code, and Telephone Number,
Including Area Code, of Agent
    for Service)
Copies to:
William N. Finnegan IV
Brett E. Braden
Latham & Watkins LLP
717 Texas Avenue, Suite 1600
Houston, Texas 77002
(713) 546-5400
G. Michael O'Leary
William J. Cooper
Andrews Kurth LLP
600 Travis, Suite 4200
Houston, Texas 77002
(713) 220-4200
Approximate date of commencement of proposed sale to the
    public:
As soon as practicable after this
    Registration Statement becomes effective.
If any of the securities being registered on this Form are to be
    offered on a delayed or continuous basis pursuant to
    Rule 415 under the Securities Act of 1933, check the
    following
    box.
o
If this Form is filed to register additional securities for an
    offering pursuant to Rule 462(b) under the Securities Act,
    check the following box and list the Securities Act registration
    statement number of the earlier effective registration statement
    for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(c) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
If this Form is a post-effective amendment filed pursuant to
    Rule 462(d) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
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 the definitions of
    "large accelerated filer," "accelerated
    filer" and "smaller reporting company" in
Rule 12b-2
of the Exchange Act. (Check one):
Large
    accelerated
    filer
o
Accelerated
    filer
o
Non-accelerated
filer
þ
Smaller reporting
    company
o
(Do not check if a smaller
    reporting company)
CALCULATION OF REGISTRATION
    FEE
Proposed Maximum
Amount of
Aggregate Offering
Registration
Title of Securities to be Registered
Price
(1)(2)
Fee
Common units representing limited partner interests
$
250,000,000
$
17,825
(1)
Includes common units issuable upon
    exercise of the underwriters' option to purchase additional
    common units.
(2)
Estimated solely for the purpose of
    calculating the registration fee pursuant to Rule 457(o).
The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section 8(a)
    of the Securities Act of 1933 or until the Registration
    Statement shall become effective on such date as the Securities
    and Exchange Commission, acting pursuant to said
    Section 8(a), may determine
.
Table of Contents
The
information in this preliminary prospectus is not complete and
may be changed. We may not sell these securities until the
registration statement filed with the Securities and Exchange
Commission is effective. This preliminary prospectus is not an
offer to sell these securities and it is not soliciting an offer
to buy these securities in any state where the offer or sale is
not permitted.
Subject
    to Completion, dated March 24, 2010
PROSPECTUS
Oxford
    Resource Partners, LP
Common
    Units
Representing
    Limited Partner Interests
This is the initial
    public offering of our common units. We are
    offering          common
    units in this offering. No public market currently exists for
    our common units.
We intend to apply
    to list our common units on the New York Stock Exchange under
    the symbol "OXF."
We anticipate the
    initial public offering price to be between
    $      and
    $      per common unit.
Investing in our
    common units involves risks. See "Risk Factors"
    beginning on page 19 of this prospectus.
These risks include
    the following:
•
We may not have
    sufficient cash to enable us to pay the minimum quarterly
    distribution on our common units following the establishment of
    cash reserves by our general partner and the payment of costs
    and expenses, including reimbursement of expenses to our general
    partner.
•
Our general partner
    and its affiliates have conflicts of interest, and their limited
    fiduciary duties to our unitholders may permit them to favor
    their own interests to the detriment of our unitholders.
•
Decreases in demand
    for electricity and changes in coal consumption patterns of
    U.S. electric power generators could adversely affect our
    business.
•
New and future
    regulatory requirements limiting greenhouse gas emissions could
    adversely affect coal-fired power generation and reduce the
    demand for coal as a fuel source, which could cause the price
    and quantity of the coal we sell to decline materially.
•
Existing and future
    regulatory requirements relating to sulfur dioxide and other air
    emissions could affect our customers and could reduce the demand
    for the high-sulfur coal we produce and cause coal prices and
    sales of our high-sulfur coal to decline materially.
•
Competition within
    the coal industry may materially and adversely affect our
    ability to sell coal at an acceptable price.
•
We depend on a
    limited number of customers for a significant portion of our
    revenues, and the loss of, or significant reduction in,
    purchases by any of them could adversely affect our results of
    operations and cash available for distribution to our
    unitholders.
•
Our inability to
    acquire additional coal reserves that are economically
    recoverable may have a material adverse effect on our future
    profitability and growth.
•
Our unitholders have
    limited voting rights and are not entitled to elect our general
    partner or its directors or initially to remove our general
    partner without its consent.
•
Our unitholders will
    be required to pay taxes on their share of our income even if
    they do not receive any cash distributions from us.
Per
    Common Unit
Total
Public Offering Price
$
$
Underwriting Discount
$
$
Proceeds to us (before expenses)
$
$
We have granted the
    underwriters a
30-day
option to purchase up to an
    additional          common
    units on the same terms and conditions set forth above if the
    underwriters sell more
    than        common units
    in this offering.
Neither the
    Securities and Exchange Commission nor any state securities
    commission has approved or disapproved of these securities or
    passed upon the accuracy or adequacy of this prospectus. Any
    representation to the contrary is a criminal offense.
Barclays Capital, on
    behalf of the underwriters, expects to deliver the common units
    on or
    about          ,
    2010.
Barclays
    Capital
Citi
Prospectus
    dated          ,
    2010
Table of Contents
[ARTWORK
    TO COME]
Table of Contents
TABLE OF
    CONTENTS
SUMMARY
1
Oxford Resource Partners, LP
1
Business Strategies
3
Competitive Strengths
3
Recent Coal Market Conditions and Trends
4
Our History
5
Our Sponsors
5
Summary of Risk Factors
6
The Transactions
7
Organizational Structure
8
Management and Ownership
9
Principal Executive Offices
9
Summary of Conflicts of Interest and Fiduciary
    Duties
9
The Offering
11
Summary Historical and Pro Forma Consolidated
    Financial and Operating Data
16
RISK FACTORS
19
Risks Related to Our Business
19
Risks Inherent in an Investment in Us
32
Tax Risks
38
USE OF PROCEEDS
43
CAPITALIZATION
44
DILUTION
45
CASH DISTRIBUTION POLICY AND RESTRICTIONS ON
    DISTRIBUTIONS
46
General
46
Minimum Quarterly Distribution Rate
47
Historical and Forecasted Results of Operations
    and Cash Available for Distribution
48
Significant Forecast Assumptions
53
HOW WE MAKE CASH DISTRIBUTIONS
56
Distributions of Available Cash
56
Operating Surplus and Capital Surplus
57
Subordination Period
58
General Partner Interest and Incentive
    Distribution Rights
61
Percentage Allocations of Available Cash from
    Operating Surplus
61
General Partner's Right to Reset Incentive
    Distribution Levels
62
Distributions from Capital Surplus
64
Adjustment to the Minimum Quarterly Distribution
    and Target Distribution Levels
65
Distributions of Cash Upon Liquidation
65
SELECTED HISTORICAL AND PRO FORMA CONSOLIDATED
    FINANCIAL AND OPERATING DATA
68
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
    FINANCIAL CONDITION AND RESULTS OF OPERATIONS
72
Overview
72
Evaluating Our Results of Operations
72
Factors that Impact Our Business
75
Recent Trends and Economic Factors Affecting the
    Coal Industry
76
Results of Operations
76
Liquidity and Capital Resources
83
i
Table of Contents
Critical Accounting Policies and Estimates
85
Quantitative and Qualitative Disclosures about
    Market Risk
89
Seasonality
90
THE COAL INDUSTRY
91
Introduction
91
Industry Trends
91
Coal Consumption and Demand
92
U.S. Scrubber Market
93
Coal Consumption in Our Primary Market Area
93
U.S. Coal Production
94
Coal Mining Methods
96
Coal Quality Characteristics
97
Transportation
98
Special Note Regarding the EIA's Market Data
    and Projections
98
BUSINESS
99
Overview
99
Business Strategies
101
Competitive Strengths
102
Our History
103
Our Sponsors
103
Mining Operations
104
Coal Reserves
108
Reclamation
110
Limestone
111
Other Operations
111
Customers
112
Suppliers
113
Competition
113
Regulation and Laws
114
Office Facilities
124
Employees
124
Legal Proceedings
124
MANAGEMENT
125
Compensation Discussion and Analysis
128
Grants of Plan-Based Awards for 2009
137
Outstanding Equity-Based Awards at
    December 31, 2009
137
Units Vested in 2009
138
Pension Benefits
138
Nonqualified Deferred Compensation
138
Potential Payment Upon Termination or Change in
    Control
139
Long-Term Incentive Plan
140
Retirement Plan
140
Compensation of Directors
141
Director Compensation Table for 2009
141
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
    AND MANAGEMENT
142
CERTAIN RELATIONSHIPS AND RELATED PARTY
    TRANSACTIONS
144
Distributions and Payments to Our General Partner
    and Its Affiliates
144
Ownership Interests of Certain Executive Officers
    and Directors of Our General Partner
145
Advisory Services Agreement
145
ii
Table of Contents
Administrative and Operational Services
    Agreement
145
Contribution Agreements
146
Investors' Rights Agreement
146
Tunnel Hill Partners, LP
147
Policies and Procedures for Review and Approval
    of Related Party Transactions
147
CONFLICTS OF INTEREST AND FIDUCIARY DUTIES
148
Conflicts of Interest
148
Fiduciary Duties
153
DESCRIPTION OF THE COMMON UNITS
156
The Units
156
Transfer Agent and Registrar
156
Transfer of Common Units
156
THE PARTNERSHIP AGREEMENT
158
Organization and Duration
158
Purpose
158
Power of Attorney
158
Capital Contributions
158
Voting Rights
159
Limited Liability
159
Issuance of Additional Securities
160
Amendment of Our Partnership Agreement
161
Merger, Sale or Other Disposition of Assets
163
Termination and Dissolution
163
Liquidation and Distribution of Proceeds
164
Withdrawal or Removal of Our General Partner
164
Transfer of General Partner Interest
165
Transfer of Ownership Interests in Our General
    Partner
165
Transfer of Incentive Distribution Rights
165
Change of Management Provisions
165
Limited Call Right
166
Meetings; Voting
166
Status as Limited Partner or Assignee
167
Non-Citizen Assignees; Redemption
167
Indemnification
168
Reimbursement of Expenses
168
Books and Reports
168
Right to Inspect Our Books and Records
169
Registration Rights
169
UNITS ELIGIBLE FOR FUTURE SALE
170
MATERIAL FEDERAL INCOME TAX CONSEQUENCES
171
Partnership Status
171
Limited Partner Status
173
Tax Consequences of Unit Ownership
173
Tax Treatment of Operations
178
Disposition of Common Units
182
Uniformity of Units
184
Tax-Exempt Organizations and Other Investors
185
Administrative Matters
185
Recent Legislative Developments
188
iii
Table of Contents
State, Local, Foreign and Other Tax
    Considerations
188
INVESTMENT IN OXFORD RESOURCE PARTNERS, LP BY
    EMPLOYEE BENEFIT PLANS
189
UNDERWRITING
191
Commissions and Expenses
191
Option to Purchase Additional Common Units
191
Lock-Up
Agreements
192
Offering Price Determination
192
Indemnification
193
Directed Unit Program
193
Stabilization, Short Positions and Penalty
    Bids
193
Electronic Distribution
194
New York Stock Exchange
194
Discretionary Sales
194
Stamp Taxes
194
Relationships/FINRA Conduct Rules
194
Selling Restrictions
195
VALIDITY OF THE COMMON UNITS
197
EXPERTS
197
WHERE YOU CAN FIND MORE INFORMATION
197
FORWARD-LOOKING STATEMENTS
198
INDEX TO FINANCIAL STATEMENTS
F-1
APPENDIX A Third Amended and Restated
    Agreement of Limited Partnership of Oxford Resource Partners,
    LP
A-1
APPENDIX B Glossary of Terms
B-1
EX-3.1
EX-21.1
EX-23.1
EX-23.2
EX-23.3
You should rely only on the information contained in this
    prospectus, any free writing prospectus prepared by or on behalf
    of us or any other information to which we have referred you in
    connection with this offering. We have not, and the underwriters
    have not, authorized any other person to provide you with
    information different from that contained in this prospectus.
    Neither the delivery of this prospectus nor the sale of common
    units means that information contained in this prospectus is
    correct after the date of this prospectus. This prospectus is
    not an offer to sell or the solicitation of an offer to buy the
    common units in any circumstances under which the offer or
    solicitation is unlawful.
Until          ,
    2010 (25 days after the date of this prospectus), all
    dealers that buy, sell or trade our common units, whether or not
    participating in this offering, may be required to deliver a
    prospectus. This is in addition to the dealers' obligation
    to deliver a prospectus when acting as underwriters and with
    respect to their unsold allotments or subscriptions.
iv
Table of Contents
SUMMARY
This summary highlights information contained elsewhere in
    this prospectus. You should read the entire prospectus
    carefully, including the historical and pro forma consolidated
    financial statements and the notes to those financial
    statements, before purchasing our common units. The information
    presented in this prospectus assumes that the underwriters'
    option to purchase additional common units is not exercised
    unless otherwise noted. You should read "Risk Factors"
    beginning on page 19 for information about important risks
    that you should consider before purchasing our common units.
Market and industry data and certain other statistical data
    used throughout this prospectus are based on independent
    industry publications, government publications and other
    published independent sources. In this prospectus, we refer to
    information regarding the coal industry in the United States and
    internationally that was obtained from the U.S. Department
    of Energy's Energy Information Administration, or the EIA,
    John T. Boyd Company and the U.S. Mine Safety and
    Health Administration, or MSHA. These organizations are not
    affiliated with us.
References in this prospectus to "Oxford Resource
    Partners, LP," "we," "our,"
    "us" or like terms refer to Oxford Resource Partners,
    LP and its subsidiaries, including our wholly owned subsidiary,
    Oxford Mining Company, LLC, which is also our accounting
    predecessor. References to "Oxford Resources GP" or
    "our general partner" refer to Oxford Resources GP,
    LLC. We include a glossary of some of the terms used in this
    prospectus as
Appendix B
.
Oxford
    Resource Partners, LP
We are a low cost producer of high value steam coal, and we are
    the largest producer of surface mined coal in Ohio. We focus on
    acquiring steam coal reserves that we can efficiently mine with
    our modern, large scale equipment. Our reserves and operations
    are strategically located in Northern Appalachia and the
    Illinois Basin to serve our primary market area of Illinois,
    Indiana, Kentucky, Ohio, Pennsylvania and West Virginia. We
    market our coal primarily to large utilities with coal-fired,
    base-load scrubbed power plants under long-term coal sales
    contracts. We believe that we will experience increased demand
    for our high-sulfur coal from power plants that have or will
    install scrubbers. Currently, there is over 54,500 megawatts of
    scrubbed base-load electric generating capacity in our primary
    market area and plans have been announced to add over 18,400
    megawatts of additional scrubbed capacity by the end of 2017. We
    also believe that we will experience increased demand for our
    coal from power plants that use coal from Central Appalachia as
    production in that region continues to decline.
We currently have 19 active surface mines that are managed as
    eight mining complexes. During the fourth quarter of 2009, our
    largest mine represented 12.5% of our coal production. This
    diversity reduces the risk that operational issues at any one
    mine will have a material impact on our business or our results
    of operations. Consistent coal quality across many of our mines
    and the mobility of our equipment fleet allows us to reliably
    serve our customers from multiple mining complexes while
    optimizing our mining plan. Our operations also include two
    river terminals, strategically located in eastern Ohio and
    western Kentucky, that further enhance our ability to supply
    coal to our customers with river access from multiple mines.
We produced 5.8 million tons of coal during 2009, including
    0.4 million tons produced from the reserves we acquired in
    western Kentucky from Phoenix Coal on September 30, 2009.
    As a result of this acquisition, our coal production during the
    fourth quarter of 2009 was 1.8 million tons, or
    7.2 million tons on an annualized basis. During 2009, we
    sold 6.3 million tons of coal, including 0.5 million
    tons of purchased coal. We currently have long-term coal sales
    contracts in place for 2010, 2011, 2012 and 2013 that represent
    97.2%, 93.0%, 71.4% and 39.7%, respectively, of our 2010
    estimated coal sales of 8.5 million tons. Members of our
    senior management team have long-standing relationships within
    our industry, and we believe those relationships will allow us
    to continue to obtain long-term contracts for our coal
    production that will continue to provide us with a reliable and
    stable revenue base.
As of December 31, 2009, we controlled 91.6 million
    tons of proven and probable coal reserves, of which
    68.6 million tons were associated with our surface mining
    operations and the remaining 23.0 million tons
1
Table of Contents
consisted of underground coal reserves that we have subleased to
    a third party in exchange for an overriding royalty.
    Historically, we have been successful at replacing the reserves
    depleted by our annual production and growing our reserve base
    by acquiring reserves with low operational, geologic and
    regulatory risks and that were located near our mining
    operations or that otherwise had the potential to serve our
    primary market area. Over the last five years, we have produced
    23.6 million tons of coal and acquired 52.9 million
    tons of proven and probable coal reserves, including
    24.6 million tons of coal reserves that we acquired in
    connection with the Phoenix Coal acquisition. We believe that
    our existing relationships with owners of large reserve blocks
    and our position as the largest producer of surface mined coal
    in Ohio will allow us to continue to acquire reserves in the
    future.
For the year ended December 31, 2009, we generated revenues
    of approximately $293.8 million, net income attributable to
    our unitholders of approximately $23.5 million and Adjusted
    EBITDA of approximately $50.8 million. Please read
    "Selected Historical and Pro Forma Consolidated Financial
    and Operating Data" for our definition of Adjusted EBITDA
    and a reconciliation of Adjusted EBITDA to net income (loss)
    attributable to our unitholders. The following table summarizes
    our mining complexes, our coal production for the year ended
    December 31, 2009 and our coal reserves as of
    December 31, 2009:
Production for the
As of December 31, 2009
Year Ended
Proven &
Average
Primary
December 31,
Probable
Average
Sulfur
Transportation
Mining Complexes
2009
Reserves
(1)
Heat Value
Content
Methods
(Btu/lb)
(%)
(in million tons)
Surface Mining Operations:
Northern Appalachia (principally Ohio)
Cadiz
1.1
12.4
11,520
3.3
Barge, Rail
Tuscarawas County
0.9
8.8
11,570
3.7
Truck
Belmont County
1.3
6.6
11,510
3.7
Barge
Plainfield
0.5
6.4
11,350
4.4
Truck
New Lexington
0.6
4.9
11,260
4.0
Rail
Harrison
(2)
0.7
2.8
12,040
1.8
Barge, Rail, Truck
Noble County
0.3
2.5
11,230
4.7
Barge, Truck
Illinois Basin (Kentucky)
Muhlenberg
    County
(3)
0.4
24.2
11,295
3.6
Barge, Truck
Total Surface Mining Operations
5.8
68.6
Underground Coal Reserves:
Northern Appalachia (Ohio)
Tusky
(4)
23.0
12,900
2.1
Total Underground Coal Reserves
23.0
Total
91.6
(1)
Reported as recoverable coal reserves, which is the portion of
    the coal that could be economically and legally extracted or
    produced at the time of the reserve determination, taking into
    account mining recovery and preparation plant yield. For
    definitions of proven coal reserves, probable coal reserves and
    recoverable coal reserves, please read
    "Business — Coal Reserves."
(2)
The Harrison mining complex is owned by Harrison Resources, LLC,
    our joint venture with CONSOL Energy, Inc. We own 51% of
    Harrison Resources and CONSOL Energy owns the remaining 49%
    through one of its subsidiaries. Because the results of
    operations of Harrison Resources are included in our
    consolidated financial statements for the year ended
    December 31, 2009 as required by U.S. generally accepted
    accounting principles, or GAAP, coal production and proven and
    probable coal reserves attributable to the Harrison mining
    complex are presented on a gross basis assuming we owned 100% of
    Harrison Resources. Please read "Business —
    Mining Operations — Northern Appalachia —
    Harrison Mining Complex."
2
Table of Contents
(3)
Acquired from Phoenix Coal on September 30, 2009. As a
    result, production data represents production from the date of
    acquisition though December 31, 2009.
(4)
Please read "Business — Coal Reserves —
    Underground Coal Reserves" for more information about our
    underground coal reserves at the Tusky mining complex, which we
    have subleased to a third party mining company in exchange for
    an overriding royalty. During 2009, we received royalty payments
    on 0.6 million tons of coal produced from the Tusky mining
    complex.
Business
    Strategies
Our primary business objective is to maintain and, over time,
    increase our cash available for distribution by executing the
    following strategies:
•
Increasing coal sales to large utilities with coal-fired,
    base-load scrubbed power plants in our primary market
    area
.  In 2009, approximately 69% of the total
    electricity generated in our primary market area was generated
    by coal-fired power plants, compared to approximately 38% for
    the rest of the United States. We intend to continue to focus on
    marketing coal to large utilities with coal-fired, base-load
    scrubbed power plants in our primary market area of Illinois,
    Indiana, Kentucky, Ohio, Pennsylvania and West Virginia.
•
Maximizing profitability by maintaining highly efficient,
    diverse and low cost surface mining
    operations
.  We intend to focus on lowering costs
    and improving the productivity of our operations. We believe our
    focus on efficient surface mining practices results in our cash
    costs being among the lowest of our peers in Northern
    Appalachia, which we believe will allow us to compete
    effectively, especially during periods of declining coal prices.
    We are in the process of implementing the same mining practices
    that we currently use in Ohio at the mines that we recently
    acquired as a part of the Phoenix Coal acquisition.
•
Generating stable revenue by entering into long-term coal
    sales contracts.
We intend to continue to enter
    into long-term coal sales contracts for substantially all of our
    annual coal production, which will reduce our exposure to
    fluctuations in market prices.
•
Continuing to grow our reserve base and production
    capacity
.  We intend to continue to grow our
    reserve base by acquiring reserves with low operational,
    geologic and regulatory risks that we can mine economically and
    that are located near our mining operations or otherwise have
    the potential to serve our primary market area. We intend to
    continue to grow our production capacity by expanding our fleet
    of large scale equipment and opening new mines as our sales
    commitments increase over time.
Competitive
    Strengths
We believe the following competitive strengths will enable us to
    execute our business strategies successfully:
•
We have an attractive portfolio of long-term coal sales
    contracts.
We believe our long-term coal sales
    contracts provide us with a reliable and stable revenue base. We
    currently have long-term coal sales contracts in place for 2010,
    2011, 2012 and 2013 that represent 97.2%, 93.0%, 71.4% and
    39.7%, respectively, of our 2010 estimated coal sales of
    8.5 million tons.
•
We have a successful history of growing our reserve base and
    production capacity
.  Historically, we have been
    successful at replacing the reserves depleted by our annual
    production and growing our reserve base by acquiring reserves
    with low operational, geologic and regulatory risks and that are
    located near our mining operations or that otherwise have the
    potential to serve our primary market area. We have also been
    successful in growing our production capacity by expanding our
    fleet of large scale equipment and opening new mines to meet our
    sales commitments. Over the last five years, we have produced
    23.6 million tons of coal and acquired 52.9 million
    tons of proven and probable coal reserves, including
    24.6 million tons of coal reserves that we acquired in
    connection with the Phoenix Coal acquisition.
3
Table of Contents
•
Our mining operations are flexible and
    diverse
.  During the fourth quarter of 2009, our
    largest mine represented 12.5% of our coal production. We
    currently have 19 active surface mines that are managed as eight
    mining complexes. Consistent coal quality across many of our
    mines and the mobility of our equipment fleet allows us to
    reliably serve our customers from multiple mining complexes
    while optimizing our mining plan.
•
We are a low cost producer of coal
.  We use
    efficient mining practices that take advantage of economies of
    scale and reduce our operating costs per ton. Our use of large
    scale equipment, our good labor relations with our non-union
    workforce, our employees' expertise and knowledge of our
    mining practices, our low level of legacy liabilities and our
    history of acquiring reserves without large up-front capital
    investments have positioned us as one of the lowest cash cost
    coal producers in Northern Appalachia.
•
Both production of, and demand for, the coal we produce are
    expected to increase in our primary market
    area
.  According to the EIA, production of coal in
    Northern Appalachia and the Illinois Basin is expected to
    increase by 29.2% and 33.1% through 2015, respectively. This
    expected increase is attributable to anticipated increases in
    demand for high-sulfur coal from scrubbed power plants and from
    consumers of Central Appalachia coal as production in that
    region continues to decline.
•
Our senior management team and key operational employees have
    extensive industry experience
.  The members of our
    senior management team have, on average, 24 years of
    experience in the coal industry and have a track record of
    acquiring, building and operating businesses profitably and
    safely.
•
We have a strong safety and environmental
    record.
We operate some of the industry's
    safest mines. From 2006 through 2009, our MSHA reportable
    incident rate was on average 14.4% lower than the rate for all
    surface coal mines in the United States. We have won numerous
    awards for our strong safety and environmental record.
Recent
    Coal Market Conditions and Trends
Coal consumption and production in the United States have been
    driven in recent periods by several market dynamics and trends.
    The recent global economic downturn has negatively impacted coal
    demand in the short-term, but long-term projections for coal
    demand remain positive.
•
Favorable long-term outlook for U.S. steam coal
    market
.  Although domestic coal consumption
    declined in 2009 due to the global economic downturn, the EIA
    forecasts that domestic coal consumption will increase by 14.4%
    through 2015 and by 32.2% through 2035, primarily due to the
    projected continued growth in coal-fired electric power
    generation demand.
•
Increase in coal production in Northern Appalachia and in the
    Illinois Basin.
According to the EIA, coal
    production in Northern Appalachia and the Illinois Basin is
    expected to grow by 29.2% and 33.1%, respectively, through 2015
    and by 35.7% and 42.8%, respectively, through 2035.
•
Decline in coal production in Central
    Appalachia
.  The EIA forecasts that coal
    production in Central Appalachia, the nation's second
    largest coal production area, will decline by 34.5% through 2015
    and by 54.1% through 2035. This decline will be offset by
    production from other U.S. regions, including Northern
    Appalachia and the Illinois Basin.
•
Expected near-term increases in international demand for
    U.S. coal exports
.  Although down from the
    previous year, U.S. exports began to increase in the second
    half of 2009, supported by recovering global economies and
    continued rapid growth in electric power generation and steel
    production capacity in Asia, particularly in China and India.
    Also, increased international demand for higher priced
    metallurgical coal has resulted in certain coal from Central
    Appalachia and Northern Appalachia, which can serve as either
    metallurgical or steam coal, being drawn into the metallurgical
    coal export market, which further reduces supplies of steam coal
    from this region for domestic consumption.
4
Table of Contents
•
Development of new coal-related technologies will lead to
    increased demand for coal
.  The EIA projects that
    new
coal-to-liquids
plants will account for 32 million tons of annual coal
    demand in ten years and that amount will more than double to
    68 million tons by 2035. In addition, through the American
    Recovery and Reinstatement Act, or ARRA, the
    U.S. government has targeted over $1.5 billion to carbon
    capture and sequestration, or CCS, research and another
    $800 million for the Clean Coal Power Initiative, a
    ten-year program supporting commercial application of CCS
    technology.
•
Increasingly stringent air quality legislation will continue
    to impact the demand for coal
.  A series of more
    stringent requirements related to particulate matter, ozone,
    mercury, sulfur dioxide, nitrogen oxide, carbon dioxide and
    other air emissions have been proposed or enacted by federal or
    state regulatory authorities in recent years. Considerable
    uncertainty is associated with these air quality regulations,
    some of which have been the subject of legal challenges in
    courts, and the actual timing of implementation remains
    uncertain.
Our
    History
We are a Delaware limited partnership that was formed in August
    2007 by American Infrastructure MLP Fund, L.P. and our founders,
    Charles C. Ungurean, the President and Chief Executive Officer
    of our general partner and a member of the board of directors of
    our general partner, and Thomas T. Ungurean, the Senior Vice
    President, Equipment, Procurement and Maintenance of our general
    partner. Each of our two founders has over 37 years of
    experience in the coal mining industry. In connection with our
    formation, our founders contributed all of their interests in
    Oxford Mining Company to us.
Our founders formed Oxford Mining Company in 1985 to provide
    contract mining services to a mining division of a major oil
    company. In 1989, our founders transitioned Oxford Mining
    Company from a contract miner into a producer of its own coal
    reserves. In January 2007, Oxford Mining Company entered into a
    joint venture, Harrison Resources, with a subsidiary of CONSOL
    Energy to mine surface coal reserves purchased from CONSOL
    Energy.
In September 2009, we completed the acquisition of Phoenix
    Coal's active surface mining operations. The Phoenix Coal
    acquisition provided us with an entry into the Illinois Basin in
    western Kentucky and included one mining complex comprised of
    four mines as well as the Island river terminal on the Green
    River in western Kentucky. In connection with this acquisition,
    we increased our total proven and probable coal reserves by
    24.6 million tons.
Our
    Sponsors
American Infrastructure MLP Fund, L.P., together with its
    subsidiaries and affiliates, or AIM, is a private investment
    firm specializing in natural resources, infrastructure and real
    property. AIM, along with certain of the funds that AIM advises,
    indirectly owns all of the ownership interests in AIM Oxford
    Holdings, LLC, or AIM Oxford. Certain directors of our general
    partner are principals of AIM and have ownership interests in
    AIM. After completion of this offering, AIM Oxford will continue
    to hold 66.3% of the ownership interests in our general partner
    and will hold     % of our common units
    and     % of our subordinated units
    (     % of our total units).
C&T Coal, Inc., or C&T Coal, is owned by our founders,
    Charles C. Ungurean and Thomas T. Ungurean. After completion of
    this offering, C&T Coal will continue to hold 33.7% of the
    ownership interests in our general partner and will
    hold     % of our common units
    and     % of our subordinated units
    (     % of our total units).
In connection with the contribution of Oxford Mining Company to
    us in August 2007, C&T Coal, Charles C. Ungurean and Thomas
    T. Ungurean agreed that they would not compete with us in the
    coal mining business in Illinois, Kentucky, Ohio, Pennsylvania,
    West Virginia and Virginia. This non-compete agreement is in
    effect until August 24, 2014.
5
Table of Contents
Summary
    of Risk Factors
An investment in our common units involves risks associated with
    our business, our partnership structure and the tax
    characteristics of our common units. The following list of risk
    factors is not exhaustive. Please read "Risk Factors"
    beginning on page 19 carefully for a more thorough
    description of these and other risks.
Risks
    Related to Our Business
•
We may not have sufficient cash to enable us to pay the minimum
    quarterly distribution on our common units following the
    establishment of cash reserves by our general partner and the
    payment of costs and expenses, including reimbursement of
    expenses to our general partner.
•
The assumptions underlying the forecast of cash available for
    distribution that we include in "Cash Distribution Policy
    and Restrictions on Distributions" are inherently uncertain
    and subject to significant risks that could cause actual results
    to differ materially from those forecasted. If we do not achieve
    the forecasted results, we may not be able to pay the minimum
    quarterly distribution or any amount on our common units and the
    market price of our common units may decline materially.
•
Decreases in demand for electricity and changes in coal
    consumption patterns of U.S. electric power generators
    could adversely affect our business.
•
Our long-term coal sales contracts subject us to renewal risks.
•
Our inability to acquire additional coal reserves that are
    economically recoverable may have a material adverse effect on
    our future profitability and growth.
•
Competition within the coal industry may materially and
    adversely affect our ability to sell coal at an acceptable price.
•
New and future regulatory requirements limiting greenhouse gas
    emissions could adversely affect coal-fired power generation and
    reduce the demand for coal as a fuel source, which could cause
    the price and quantity of the coal we sell to decline materially.
•
Existing and future regulatory requirements relating to sulfur
    dioxide and other air emissions could affect our customers and
    could reduce the demand for the high-sulfur coal we produce and
    cause coal prices and sales of our high-sulfur coal to decline
    materially.
•
Our coal mining operations are subject to operating risks, which
    could result in materially increased operating expenses and
    decreased production levels and could have a material adverse
    effect on our business, financial condition or results of
    operations.
•
We may not receive cash distributions from Harrison Resources in
    the future.
•
We depend on a limited number of customers for a significant
    portion of our revenues, and the loss of, or significant
    reduction in, purchases by any of them could adversely affect
    our results of operations and cash available for distribution to
    our unitholders.
Risks
    Inherent in an Investment in Us
•
Our partnership agreement limits our general partner's
    fiduciary duties to our unitholders and restricts the remedies
    available to our unitholders for actions taken by our general
    partner that might otherwise constitute breaches of fiduciary
    duty.
•
Our general partner and its affiliates have conflicts of
    interest, and their limited fiduciary duties to our unitholders
    may permit them to favor their own interests to the detriment of
    our unitholders.
•
Our unitholders have limited voting rights and are not entitled
    to elect our general partner or its directors or initially to
    remove our general partner without its consent.
6
Table of Contents
•
Our unitholders will experience immediate and substantial
    dilution of $      per common unit.
•
The control of our general partner may be transferred to a third
    party without unitholder consent.
Tax
    Risks
•
Our tax treatment depends on our status as a partnership for
    federal income tax purposes. If the IRS were to treat us as a
    corporation for federal income tax purposes, which would subject
    us to entity-level taxation, then our cash available for
    distribution to our unitholders would be substantially reduced.
•
If we were subjected to a material amount of additional
    entity-level taxation by individual states, it would reduce our
    cash available for distribution to our unitholders.
•
The tax treatment of publicly traded partnerships or an
    investment in our common units could be subject to potential
    legislative, judicial or administrative changes and differing
    interpretations, possibly on a retroactive basis.
•
Certain federal income tax preferences currently available with
    respect to coal exploration and development may be eliminated in
    future legislation.
•
Our unitholders will be required to pay taxes on their share of
    our income even if they do not receive any cash distributions
    from us.
The
    Transactions
Immediately prior to the closing of this offering:
•
We will distribute approximately
    $      million of cash and
    accounts receivable to our general partner, C&T Coal, AIM
    Oxford and the participants in the Oxford Resource Partners, LP
Long-Term
Incentive Plan, or our LTIP, pro rata, in accordance with their
    respective interests in us.
In connection with the closing of this offering, the following
    will occur:
•
we will enter into a new credit facility;
•
our general partner will convert its 2.0% general partner
    interest in us, represented
    by          general
    partner units,
    into          
    general partner units representing a 2.0% general partner
    interest in us;
•
C&T Coal will convert all of its Class B common units,
    representing a     % limited partner
    interest in us, into:
    (i)          common
    units, representing a     % limited
    partner interest in us, and
    (ii)           subordinated
    units, representing a     % limited
    partner interest in us;
•
AIM Oxford will convert all of its Class B common units,
    representing a     % limited partner
    interest in us, into:
    (i)          common
    units, representing a     % limited
    partner interest in us, and
    (ii)          subordinated
    units, representing a     % limited
    partner interest in us;
•
the participants in our LTIP will receive a distribution
    of          
    common units for each common unit they currently own, resulting
    in their ownership of an aggregate
    of          
    common units, representing an
    aggregate     % limited partner
    interest in us;
•
we will
    issue          
    common units to the public in this offering, representing an
    aggregate     % limited partner
    interest in us; and
•
we will use the net proceeds from this offering and the net
    proceeds from borrowings under our new credit facility for the
    purposes set forth in "Use of Proceeds."
7
Table of Contents
Organizational
    Structure
The following is a simplified diagram of our ownership structure
    after giving effect to this offering and the related
    transactions.
Public common units
%
Interests of C&T Coal, AIM Oxford and Oxford Resources GP:
Common units held by C&T Coal
%
Common units held by AIM Oxford
%
Subordinated units held by C&T Coal
%
Subordinated units held by AIM Oxford
%
General partner units held by Oxford Resources GP
2.0
%
Common units held by participants in our LTIP
%
100
%
8
Table of Contents
Management
    and Ownership
We are managed and operated by the board of directors and
    executive officers of our general partner, Oxford Resources GP.
    Currently, and upon the consummation of this offering, C&T
    Coal and AIM Oxford will own all of the ownership interests in
    our general partner. Our unitholders will not be entitled to
    elect our general partner or its directors or otherwise directly
    participate in our management or operation. Charles C. Ungurean,
    the President and Chief Executive Officer of our general partner
    and a member of the board of directors of our general partner,
    and Thomas T. Ungurean, the Senior Vice President, Equipment,
    Procurement and Maintenance of our general partner, own all of
    the equity interests in C&T Coal. In addition, certain
    directors of our general partner are principals of AIM and have
    ownership interests in AIM. For information about the executive
    officers and directors of our general partner, please read
    "Management." Our general partner will be liable, as
    general partner, for all of our debts (to the extent not paid
    from our assets), except for indebtedness or other obligations
    that are made specifically nonrecourse to it. Whenever possible,
    our general partner intends to cause us to incur indebtedness or
    other obligations that are nonrecourse to it.
In order to maintain operational flexibility, our operations
    will be conducted through, and our operating assets will be
    owned by, Oxford Mining Company and its subsidiaries. However,
    we, Oxford Mining Company and its subsidiaries do not have any
    employees. All of the employees that conduct our business are
    employed by our general partner, but we refer to these
    individuals in this prospectus as our employees.
Following the consummation of this offering, our general partner
    and its affiliates will not receive any management fee or other
    compensation in connection with our general partner's
    management of our business, but will be reimbursed for expenses
    incurred on our behalf. These expenses include the costs of
    officer and director and other employee compensation and
    benefits properly allocable to us, and all other expenses
    necessary or appropriate for the conduct of our business and
    allocable to us. Our partnership agreement provides that our
    general partner will determine in good faith the expenses that
    are allocable to us.
Our general partner owns general partner units representing a
    2.0% general partner interest in us, which entitles it to
    receive 2.0% of all the distributions we make. Our general
    partner also owns all of our incentive distribution rights,
    which will entitle it to increasing percentages, up to a maximum
    of 48%, of the cash we distribute in excess of
    $      per unit per quarter, after the
    closing of our initial public offering. Please read
    "Certain Relationships and Related Party Transactions."
Principal
    Executive Offices
Our principal executive offices are located at 544 Chestnut
    Street, Coshocton, Ohio 43812. Our phone number
    is               .
    Following the completion of this offering, our website will be
    located at
http://www.oxfordresources.com.
We expect to make our periodic reports and other information
    filed with or furnished to the SEC available, free of charge,
    through our website, as soon as reasonably practicable after
    those reports and other information are electronically filed
    with or furnished to the SEC. Information on our website or any
    other website is not incorporated by reference into this
    prospectus and does not constitute a part of this prospectus.
Summary
    of Conflicts of Interest and Fiduciary Duties
General.
Our general partner and its directors
    and officers have a legal duty to manage us in a manner
    beneficial to our unitholders. This legal duty originates under
    state law in statutes and judicial decisions and is commonly
    referred to as a "fiduciary duty." However, because
    our general partner is owned by C&T Coal and AIM Oxford,
    the directors and officers of our general partner also have
    fiduciary duties to manage the business of our general partner
    in a manner beneficial to C&T Coal and AIM Oxford. As a
    result, conflicts of interest may arise in the future between us
    and our unitholders, on the one hand, and our general partner
    and its affiliates, on the other hand. For a more detailed
    description of the conflicts of interest and fiduciary duties of
    our general partner, please read "Conflicts of Interest and
    Fiduciary Duties."
9
Table of Contents
Partnership Agreement Modifications of Fiduciary
    Duties.
Delaware law provides that Delaware
    limited partnerships may, in their partnership agreements,
    restrict or expand the fiduciary duties owed by the general
    partner to limited partners and the partnership. Our partnership
    agreement limits the liability of, and reduces the fiduciary
    duties owed by, our general partner and the directors and
    officers of our general partner to our unitholders. Our
    partnership agreement also restricts the remedies available to
    our unitholders for actions that might otherwise constitute
    breaches of fiduciary duty by our general partner and its
    directors and officers. By purchasing a common unit, our
    unitholders are treated as having consented to various actions
    contemplated in the partnership agreement and conflicts of
    interest that might otherwise be considered a breach of
    fiduciary or other duties under applicable law. Please read
    "Conflicts of Interest and Fiduciary Duties —
    Fiduciary Duties" for a description of the fiduciary duties
    imposed on our general partner and its directors and officers by
    Delaware law, the material modifications of these duties
    contained in our partnership agreement and certain legal rights
    and remedies available to our unitholders.
For a description of our other relationships with our
    affiliates, please read "Certain Relationships and Related
    Party Transactions."
10
Table of Contents
The
    Offering
Common units offered to the public
common
    units.
common
    units if the underwriters exercise their option to purchase
    additional common units in full.
Units outstanding after this offering
common
    units representing a     % limited
    partner interest in us
    and          
    subordinated units representing a     %
    limited partner interest in us.
Our general partner will
    own          
    general partner units, representing a 2.0% general partner
    interest in us.
Use of proceeds
We intend to use the net proceeds from this offering of
    approximately $      million
    (based on the mid-point of the price range set forth on the
    cover page of this prospectus), after deducting underwriting
    discounts and commissions but before paying offering expenses,
    to (i) repay in full the outstanding balance under our
    existing credit facility, (ii) distribute approximately
    $      million to C&T Coal,
    (iii) distribute approximately
    $      million to certain
    participants in our LTIP, (iv) pay offering expenses of
    approximately $      million and
    (v) replenish approximately
    $      million of our working
    capital. We will use the proceeds from borrowings of
    approximately $      million under
    our new credit facility to (i) distribute approximately
    $      million to AIM Oxford and
    (ii) pay fees and expenses relating to our new credit
    facility of approximately $     .
If the underwriters' option to purchase additional common
    units is exercised in full, we will use the net proceeds to
    redeem from C&T Coal and AIM Oxford a number of common
    units equal to the number of common units issued upon such
    exercise, at a price per common unit equal to the proceeds per
    common unit before expenses but after deducting underwriting
    discounts and commissions.
Please read "Use of Proceeds."
Cash distributions
We intend to make a minimum quarterly distribution of
    $          
    per common unit (or $      per common
    unit on an annualized basis) to the extent we have sufficient
    cash after the establishment of cash reserves by our general
    partner and the payment of our costs and expenses, including
    reimbursement of expenses to our general partner and its
    affiliates.
Our ability to pay cash distributions at this minimum quarterly
    distribution rate is subject to various restrictions and other
    factors described in more detail under "Cash Distribution
    Policy and Restrictions on Distributions."
We will adjust the minimum quarterly distribution for the period
    from the closing of this offering
    through          ,
    2010 based on the actual length of the period.
Our partnership agreement requires us to distribute all of our
    cash on hand at the end of each quarter after the payment of
    costs and
11
Table of Contents
expenses, less reserves established by our general partner. We
    refer to this cash as "available cash," and we define
    its meaning in our partnership agreement, in "How We Make
    Cash Distributions — Distributions of Available
    Cash — Definition of Available Cash" and in the
    glossary of terms attached as
Appendix B
.
In general, we will pay any cash distributions we make each
    quarter in the following manner:
•
first
, 98% to the holders
    of common units and 2.0% to our general partner, until each
    common unit has received a minimum quarterly distribution of
    $      plus any arrearages from prior
    quarters;
•
second
, 98% to the holders
    of subordinated units and 2.0% to our general partner, until
    each subordinated unit has received a minimum quarterly
    distribution of
    $          ;
    and
•
third
, 98% to all
    unitholders, pro rata, and 2.0% to our general partner, until
    each unit has received a distribution of
    $       .
If cash distributions to our unitholders exceed
    $      per common and subordinated unit
    in any quarter, our unitholders and our general partner will
    receive distributions according to the following percentage
    allocations:
Marginal Percentage Interest in
Total Quarterly Distribution
Distributions
Target Amount
Unitholders
General Partner
above $     up to
    $
85%
15%
above $     up to
    $
75%
25%
above $
50%
50%
Please read "How We Make Cash Distribution —
    General Partner Interest and Incentive Distribution Rights."
Historical cash available for distribution generated during the
    year ended December 31, 2009 would have been sufficient to
    allow us to pay     %
    and     % of the minimum quarterly
    distribution ($      per quarter, or
    $      on an annualized basis) on our
    common units and subordinated units, respectively.
Please read "Cash Distribution Policy and Restrictions on
    Distributions — Historical and Forecasted Results of
    Operations and Cash Available for Distribution."
We have included a forecast of our cash available for
    distribution for the twelve months ending June 30, 2011 in
    "Cash Distribution Policy and Restrictions on
    Distributions — Historical and Forecasted Results of
    Operations and Cash Available for Distribution." We
    believe, based on our financial forecast and related
    assumptions, that we will have sufficient available cash to
    enable us to pay the full minimum quarterly distribution of
    $      on all of our common units and
    subordinated units and the related distribution on our general
    partner's 2.0% general partner interest for the four
    quarters ending June 30, 2011. The amount of available cash
    we need to pay the minimum quarterly distribution for four
    quarters on our common units, subordinated units and
12
Table of Contents
general partner units to be outstanding immediately after this
    offering is approximately
    $      million. Based on our
    financial forecast and related assumptions, we forecast that our
    cash available for distribution for the twelve months ending
    June 30, 2011 will be approximately
    $      million.
Although we do not anticipate any, distributions out of capital
    surplus, as opposed to operating surplus, will constitute a
    return of capital to our unitholders and will result in a
    reduction in the minimum quarterly distribution and target
    distribution levels. For a further description of this treatment
    of distributions from capital surplus, please read "How We
    Make Cash Distributions — Distributions from Capital
    Surplus — Effect of a Distribution from Capital
    Surplus."
Subordinated units
C&T Coal and AIM Oxford will initially own all of our
    subordinated units. The principal difference between our common
    units and subordinated units is that, in any quarter during the
    subordination period, the subordinated units are not entitled to
    receive any distributions of available cash until the common
    units have received the minimum quarterly distribution plus any
    arrearages in the payment of the minimum quarterly distribution
    from prior quarters. Subordinated units will not accrue
    arrearages.
Conversion of subordinated units
The subordination period will end on the first business day
    after we have earned and paid from operating surplus generated
    in the applicable period at least
    (i) $      (the minimum quarterly
    distribution on an annualized basis) on each outstanding common
    and subordinated unit and the corresponding distribution on our
    general partner units for each of three consecutive,
    non-overlapping four quarter periods ending on or after
    June 30, 2013 or (ii) $     
    per quarter (150% of the minimum quarterly distribution, which
    is $      on an annualized basis) on
    each outstanding common and subordinated unit and the
    corresponding distributions on our general partner units for
    each of four consecutive quarters, in each case provided there
    are no arrearages on our common units at that time.
In addition, the subordination period will end upon the removal
    of our general partner other than for cause if the units held by
    our general partner and its affiliates are not voted in favor of
    such removal.
When the subordination period ends, all subordinated units will
    convert into common units on a
one-for-one
basis, and the common units will no longer be entitled to
    arrearages. Please read "How We Make Cash
    Distributions — Subordination Period."
General partner's right to reset the target distribution
    levels
Our general partner has the right, at a time when there are no
    subordinated units outstanding and it has received incentive
    distributions at the highest level to which it is entitled (48%)
    for each of the prior four consecutive fiscal quarters, to reset
    the initial cash target distribution levels at higher levels
    based on the distribution at the time of the exercise of the
    reset election. Following a reset election by our general
    partner, the minimum
13
Table of Contents
quarterly distribution will be adjusted to equal the reset
    minimum quarterly distribution, and the target distribution
    levels will be reset to correspondingly higher levels based on
    the same percentage increases above the reset minimum quarterly
    distribution.
If our general partner elects to reset the target distribution
    levels, it will be entitled to receive common units and
    additional general partner units. The number of common units to
    be issued to our general partner will be equal to the number of
    common units that would have entitled their holder to an
    aggregate quarterly cash distribution equal to the average of
    the distributions to our general partner on the incentive
    distribution rights in the prior two quarters, assuming a per
    unit distribution equal to the average of the distribution for
    the prior two quarters. Our general partner will be issued the
    number of general partner units necessary to maintain its
    general partner interest in us immediately prior to the reset
    election. Please read "How We Make Cash
    Distributions — General Partner's Right to Reset
    Incentive Distribution Levels."
Issuance of additional units
Our partnership agreement authorizes us to issue an unlimited
    number of additional units without the approval of our
    unitholders. Please read "Units Eligible for Future
    Sale" and "The Partnership Agreement —
    Issuance of Additional Securities."
Limited voting rights
Our general partner will manage and operate us. Unlike the
    holders of common stock in a corporation, our unitholders will
    have only limited voting rights on matters affecting our
    business. Our unitholders will have no right to elect our
    general partner or its directors on an annual or other
    continuing basis. Our general partner may not be removed except
    by a vote of the holders of at least 80% of the outstanding
    units, including any units owned by our general partner and its
    affiliates, voting together as a single class. Upon consummation
    of this offering, our general partner and its affiliates will
    own an aggregate of     % of our common
    and subordinated units. This will give our general partner the
    ability to prevent its involuntary removal. Please read
    "The Partnership Agreement — Voting Rights."
Limited call right
If at any time our general partner and its affiliates own more
    than 80% of the outstanding common units, our general partner
    has the right, but not the obligation, to purchase all of the
    remaining common units at a price not less than the then-current
    market price of the common units. Please read "The
    Partnership Agreement — Limited Call Right."
Estimated ratio of taxable income to distributions
We estimate that if you own the common units you purchase in
    this offering through the record date for distributions for the
    period ending December 31, 2013, you will be allocated, on
    a cumulative basis, an amount of federal taxable income for that
    period that will be     % or less of
    the cash distributed with respect to that period. For example,
    if you receive an annual distribution of
    $      per unit, we estimate that your
    average allocable federal taxable income per year will be no
    more than $      per unit. Please read
    "Material Federal Income Tax Consequences — Tax
    Consequences
14
Table of Contents
of Unit Ownership — Ratio of Taxable Income to
    Distributions" for the basis of this estimate.
Material federal income tax consequences
For a discussion of other material federal income tax
    consequences that may be relevant to prospective unitholders who
    are individual citizens or residents of the United States,
    please read "Material Federal Income Tax Consequences."
Exchange listing
We intend to apply to list our common units on the New York
    Stock Exchange under the symbol "OXF."
15
Table of Contents
Summary
    Historical and Pro Forma Consolidated Financial and Operating
    Data
The following table presents our summary historical consolidated
    financial and operating data, as well as that of our accounting
    predecessor and wholly owned subsidiary, Oxford Mining Company,
    as of the dates and for the periods indicated. The following
    table also presents our summary pro forma consolidated financial
    and operating data as of the dates and for the periods indicated.
The summary historical consolidated financial data presented for
    the period from January 1, 2007 to August 23, 2007 are
    derived from the audited historical consolidated financial
    statements of Oxford Mining Company that are included elsewhere
    in this prospectus. The summary historical consolidated
    financial data presented as of December 31, 2007 for the
    period from August 24, 2007 to December 31, 2007 and
    as of and for the years ended December 31, 2008 and 2009
    are derived from our audited historical consolidated financial
    statements that are included elsewhere in this prospectus.
The summary pro forma consolidated financial data presented as
    of and for the year ended December 31, 2009 are derived
    from our unaudited pro forma consolidated financial statements
    included elsewhere in this prospectus. Our unaudited pro forma
    consolidated financial statements give pro forma effect to
    (i) the Phoenix Coal acquisition and (ii) this
    offering and the transactions related to this offering described
    in "Summary — The Transactions" and the
    application of the net proceeds from this offering described in
    "Use of Proceeds." The unaudited pro forma
    consolidated balance sheet assumes this offering occurred as of
    December 31, 2009. The unaudited pro forma consolidated
    statement of operations for the year ended December 31,
    2009 assumes the Phoenix Coal acquisition, this offering and the
    transactions related to this offering occurred as of
    January 1, 2009. We have not given pro forma effect to
    incremental selling, general and administrative expenses of
    approximately $3.0 million that we expect to incur as a
    result of being a publicly traded partnership.
For a detailed discussion of the following table, please read
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations." The following table
    should also be read in conjunction with
    "Summary — The Transactions," "Use of
    Proceeds," "Business — Our History,"
    the historical consolidated financial statements of Oxford
    Mining Company, the historical combined financial statements for
    the carved-out surface mining operations of Phoenix Coal and our
    unaudited pro forma consolidated financial statements and
    audited consolidated financial statements included elsewhere in
    this prospectus. Among other things, those historical and pro
    forma consolidated financial statements include more detailed
    information regarding the basis of presentation for the
    information in the following table.
The following table presents a non-GAAP financial measure,
    Adjusted EBITDA, which we use in our business as it is an
    important supplemental measure of our performance. Adjusted
    EBITDA represents net income (loss) attributable to our
    unitholders before interest, taxes, depreciation, depletion and
    amortization, gain from purchase of a business, amortization of
    below-market coal sales contracts and non-cash equity
    compensation expense. This measure is not calculated or
    presented in accordance with GAAP. We explain this measure below
    and reconcile it to its most directly comparable financial
    measure calculated and presented in accordance with GAAP.
16
Table of Contents
Pro Forma
Oxford Mining Company
Oxford Resource
(Predecessor)
Oxford Resource Partners, LP
Partners, LP
Period from January 1,
Period from August 24,
Year Ended
Year Ended
Year Ended
2007 to August 23,
2007 to December 31,
December 31,
December 31,
December 31,
2007
2007
2008
2009
2009
(unaudited)
(in thousands, except per ton amounts)
Statement of Operations Data:
Revenues:
Coal sales
$
96,799
$
61,324
$
193,699
$
254,171
$
312,490
Transportation revenue
18,083
10,204
31,839
32,490
37,221
Royalty and non-coal revenue
3,267
1,407
4,951
7,183
7,183
Total revenues
118,149
72,935
230,489
293,844
356,894
Costs and expenses:
Cost of coal sales (excluding DD&A, shown separately)
70,415
40,721
151,421
170,698
213,446
Cost of purchased coal
17,494
9,468
12,925
19,487
29,792
Cost of transportation
18,083
10,204
31,839
32,490
37,221
Depreciation, depletion, and amortization
9,025
4,926
16,660
25,902
31,424
Selling, general and administrative expenses
3,643
2,114
9,577
13,242
25,735
Total costs and expenses
118,660
67,433
222,422
261,819
337,618
Income (loss) from operations
(511
)
5,502
8,067
32,025
19,276
Interest income
26
55
62
35
39
Interest expense
(2,386
)
(3,498
)
(7,720
)
(6,484
)
(6,341
)
Gain from purchase of
    business
(1)
—
—
—
3,823
3,823
Net income (loss)
(2,871
)
2,059
409
29,399
16,797
Less: Net income attributable to noncontrolling interest
(682
)
(537
)
(2,891
)
(5,895
)
(5,895
)
Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
$
(3,553
)
$
1,522
$
(2,482
)
$
23,504
$
10,902
Statement of Cash Flows Data:
Net cash provided by (used in):
Operating activities
$
17,634
$
(8,478
)
$
33,951
$
35,540
Investing activities
(16,619
)
(103,336
)
(23,901
)
(51,115
)
Financing activities
(234
)
111,274
4,494
3,762
Other Financial Data:
Adjusted
    EBITDA
(2)
$
7,832
$
9,145
$
20,349
$
50,799
$
39,016
Maintenance capital
    expenditures
(3)
13,020
4,841
21,529
27,461
27,461
Distributions
—
12,503
13,407
Balance Sheet Data (at period end):
Cash and cash equivalents
$
1,175
$
635
$
15,179
$
3,366
$
30,769
Trade accounts receivable
18,396
17,547
21,528
24,403
2,000
Inventory
4,824
4,655
5,134
8,801
8,801
PPE, net
54,510
106,408
112,446
149,461
149,461
Total assets
90,893
146,774
171,297
203,363
209,726
Total debt (current and long-term)
43,165
75,654
83,977
95,711
98,711
Operating Data:
Tons of coal produced
2,693
1,634
5,089
5,846
7,221
Tons of coal purchased
641
305
434
530
885
Tons of coal sold
3,333
1,938
5,528
6,311
8,051
Average sales price per
    ton
(4)
$
29.04
$
31.64
$
35.04
$
40.27
$
38.81
Cost of coal sales per ton
    produced
(5)
$
26.15
$
24.92
$
29.75
$
29.20
$
29.56
Cost of purchased coal per
    ton
(6)
$
27.29
$
31.08
$
29.81
$
36.79
$
33.66
(1)
On September 30, 2009, we acquired all of the active
    surfacing mining operations of Phoenix Coal. The purchase price
    of this acquisition was less than the fair value of the net
    assets and liabilities we acquired. We recorded this difference
    as a gain of $3.8 million for the year ending
    December 31, 2009.
(2)
See "Selected Historical and Pro Forma Consolidated
    Financial and Operating Data" for our definition of
    Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net
    income attributable to our unitholders.
17
Table of Contents
(3)
Maintenance capital expenditures are cash expenditures made to
    maintain or replace, including over the long term, our operating
    capacity, asset base or operating income. Examples of
    maintenance capital expenditures include capital expenditures
    associated with the replacement of equipment and coal reserves,
    whether through the expansion of an existing mine or the
    acquisition or development of new reserves, to the extent such
    expenditures are made to maintain our operating capacity, asset
    base or operating income. Historically, we have not made a
    distinction between maintenance capital expenditures and other
    capital expenditures. For purposes of this presentation,
    however, we have evaluated our historical capital expenditures
    to estimate which of them would have been maintenance capital
    expenditures had we classified them as such at the time they
    were made. The amounts shown reflect our estimates based on that
    evaluation.
(4)
Represents our coal sales divided by total tons of coal sold.
(5)
Represents our cost of coal sales (excluding DD&A) divided
    by the tons of coal we produce.
(6)
Represents the cost of purchased coal divided by the tons of
    coal we purchase.
18
Table of Contents
RISK
    FACTORS
Limited partner interests are inherently different from the
    capital stock of a corporation, although many of the business
    risks to which we are subject are similar to those that would be
    faced by a corporation engaged in a similar business. You should
    carefully consider the following risk factors together with all
    of the other information included in this prospectus in
    evaluating an investment in our common units.
If any of the following risks were to occur, our business,
    financial condition, results of operations and cash available
    for distribution could be materially adversely affected. In that
    case, we might not be able to make distributions on our common
    units, the trading price of our common units could decline and
    you could lose all or part of your investment.
Risks
    Related to Our Business
We may not have sufficient cash to enable us to pay the
    minimum quarterly distribution on our common units following the
    establishment of cash reserves by our general partner and the
    payment of costs and expenses, including reimbursement of
    expenses to our general partner.
We may not have sufficient cash each quarter to pay the minimum
    quarterly distribution. The amount of cash we can distribute on
    our common and subordinated units principally depends upon the
    amount of cash we generate from our operations, which will
    fluctuate from quarter to quarter based on, among other things:
•
the level of our production and coal sales and the amount of
    revenue we generate;
•
the level of our operating costs, including reimbursement of
    expenses to our general partner;
•
changes in governmental regulation of the mining industry or the
    electric power industry and the increased costs of complying
    with those changes;
•
our ability to obtain, renew and maintain permits on a timely
    basis;
•
prevailing economic and market conditions; and
•
difficulties in collecting our receivables because of credit or
    financial problems of major customers.
In addition, the actual amount of cash we will have available
    for distribution will depend on other factors, such as:
•
the level of capital expenditures we make;
•
the restrictions contained in our credit agreement and our debt
    service requirements;
•
the cost of acquisitions;
•
fluctuations in our working capital needs;
•
our ability to borrow funds and access capital markets; and
•
the amount of cash reserves established by our general partner.
For a description of additional restrictions and factors that
    may affect our ability to make cash distributions, please read
    "Cash Distribution Policy and Restrictions on
    Distributions."
The assumptions underlying the forecast of cash available
    for distribution that we include in "Cash Distribution
    Policy and Restrictions on Distributions" are inherently
    uncertain and subject to significant risks that could cause
    actual results to differ materially from those forecasted. If we
    do not achieve the forecasted results, we may not be able to pay
    the minimum quarterly distribution or any amount on our common
    units and the market price of our common units may decline
    materially.
The forecast of cash available for distribution set forth in
    "Cash Distribution Policy and Restrictions on
    Distributions" includes our forecast of our results of
    operations and cash available for distribution for the twelve
    months ending June 30, 2011. The financial forecast has
    been prepared by management, and we have neither received nor
    requested an opinion or report on it from our or any other
    independent auditor. The
19
Table of Contents
assumptions underlying the forecast are inherently uncertain and
    are subject to significant business, economic, regulatory and
    competitive risks, including those discussed below, that could
    cause actual results to differ materially from those forecasted.
    If we do not achieve the forecasted results, we may not be able
    to pay the minimum quarterly distribution or any amount on our
    common units or subordinated units and the market price of our
    common units may decline materially.
The amount of available cash we need to pay the minimum
    quarterly distribution for four quarters on our common units,
    subordinated units and general partner units to be outstanding
    immediately after this offering is approximately
    $      million. Historical cash
    available for distribution generated during the year ended
    December 31, 2009 would have been sufficient to allow us to
    pay     %
    and     % of the minimum quarterly
    distribution ($      per quarter, or
    $      on an annualized basis) on our
    common units and subordinated units, respectively. For a
    calculation of our ability to make distributions to unitholders
    based on our historical results for the year ended
    December 31, 2009 and for a forecast of our ability to pay
    the full minimum quarterly distribution on our common units,
    subordinated units and general partner units for the twelve
    months ending June 30, 2011, please read "Cash
    Distribution Policy and Restrictions on Distributions."
Decreases in demand for electricity and changes in coal
    consumption patterns of U.S. electric power generators could
    adversely affect our business.
Our business is closely linked to domestic demand for
    electricity. In 2009 we sold approximately 89% of our coal to
    domestic electric power generators, and we have long-term
    contracts in place with these electric power generators for a
    significant portion of our future production. In addition,
    because our business is linked to domestic demand for
    electricity, any changes in coal consumption by
    U.S. electric power generators would likely impact our
    business over the long term. The amount of coal consumed by
    electric power generation is affected by, among other things:
•
general economic conditions, particularly those affecting
    industrial electric power demand;
•
indirect competition from alternative fuel sources for power
    generation, such as natural gas, fuel oil, nuclear,
    hydroelectric, wind and solar power, and the location,
    availability, quality and price of those alternative fuel
    sources;
•
environmental and other governmental regulations, including
    those impacting coal-fired power plants; and
•
energy conservation efforts and related governmental policies.
Historically, demand for electricity has decreased during
    periods of economic downturn, such as the recent downturn in the
    U.S. economy and financial markets. According to the EIA,
    total electricity consumption in the United States fell by
    approximately 3.8% during 2009 compared with 2008, primarily
    because of the effect of the economic downturn on industrial
    electricity demand, and U.S. electric generation from coal
    fell by approximately 11.0% in 2009 compared with 2008. Further
    decreases in the demand for electricity, such as decreases that
    could be caused by a worsening of current economic conditions, a
    prolonged economic recession or other similar events, could have
    a material adverse effect on the demand for coal and on our
    business over the long term.
Changes in the coal industry, such as those caused by decreased
    electricity demand and increased competition, may also cause
    some of our customers not to renew, extend or enter into new
    long-term coal sales contracts with us or to enter into
    agreements to purchase reduced quantities of coal than in the
    past or on different terms or prices. Indirect competition from
    gas-fired generation has the most potential to displace a
    significant amount of coal-fired generation in the near term,
    particularly older, less efficient coal-powered generators. We
    expect that many of the new power plants needed in the future to
    meet increased demand for electricity will be fired by natural
    gas because gas-fired plants are cheaper to construct and
    permits to construct these plants are easier to obtain, and may
    be less prone to challenge, because natural-gas fired generators
    are viewed as having a lower environmental impact than
    coal-fired generators. In addition, uncertainty caused by
    federal and state regulations could cause coal customers to be
    uncertain of their coal requirements in future years and could
    deter them from entering into new, or extending or renewing
    existing, long-term coal sales contracts.
20
Table of Contents
Our
    long-term coal sales contracts subject us to renewal
    risks.
We sell most of the coal we produce under long-term coal sales
    contracts, which we define as contracts with terms greater than
    one year. As a result, our results of operations are dependent
    upon the prices we receive for the coal we sell under these
    contracts. To the extent we are not successful in renewing,
    extending or renegotiating our long-term contracts on favorable
    terms, we may have to accept lower prices for the coal we sell
    or sell reduced quantities of coal in order to secure new sales
    contracts for our coal. Prices and quantities under our
    long-term coal sales contracts are generally based on
    expectations of future coal prices at the time the contract is
    entered into, renewed, extended or re-opened. The expectation of
    future prices for coal depends upon factors beyond our control,
    including the following:
•
domestic and foreign supply and demand for coal, including
    demand for U.S. coal exports from eastern U.S. markets;
•
domestic demand for electricity, which tends to follow changes
    in general economic activity;
•
domestic and foreign economic conditions;
•
the price, quantity and quality of other coal available to our
    customers;
•
competition for production of electricity from non-coal sources,
    including the price and availability of alternative fuels and
    other sources, such as natural gas, fuel oil, nuclear,
    hydroelectric, wind and solar power, and the effects of
    technological developments related to these non-coal energy
    sources;
•
domestic air emission standards for coal-fired power plants, and
    the ability of coal-fired power plants to meet these standards
    by installing scrubbers, purchasing emissions allowances or
    other means; and
•
legislative and judicial developments, regulatory changes, or
    changes in energy policy and energy conservation measures that
    would adversely affect the coal industry.
Two of our long-term coal sales contracts contain market-based
    "re-opener" provisions that permit the sales price
    terms to be adjusted every three years. For 2011, 2012 and 2013,
    0.4 million tons, 0.4 million tons and
    0.6 million tons of coal, respectively, that we have
    committed to deliver under our long-term coal sales contracts
    are subject to price re-openers. Under these re-openers, the
    failure of the parties to agree on a new market-based price
    gives either party the right to terminate the contract. While
    these re-openers can benefit us during periods of rising coal
    prices, they have the potential to adversely affect us during
    periods of declining coal prices.
Our
    inability to acquire additional coal reserves that are
    economically recoverable may have a material adverse effect on
    our future profitability and growth.
Our profitability depends substantially on our ability to mine,
    in a cost-effective manner, coal reserves that possess the
    quality characteristics our customers desire. Because our
    reserves decline as we mine our coal, our future profitability
    and growth depend upon our ability to acquire additional coal
    reserves that are economically recoverable to replace the
    reserves we produce. If we fail to acquire or develop sufficient
    additional reserves to replace the reserves depleted by our
    production, our existing reserves will eventually be depleted.
    Please read "Business — Coal Reserves."
Competition within the coal industry may materially and
    adversely affect our ability to sell coal at an acceptable
    price.
We compete for domestic sales with numerous other coal producers
    in Northern Appalachia and the Illinois Basin and in other coal
    producing regions of the United States, primarily Central
    Appalachia and the Powder River Basin, or the PRB. The most
    important factors on which we compete are delivered price (i.e.,
    the cost of coal delivered to the customer, including
    transportation costs, which are generally paid by our customers
    either directly or indirectly), coal quality characteristics
    (primarily heat, sulfur, ash and moisture content) and
    reliability of supply. For example, even though PRB coal must be
    transported by rail over long distances at substantial
    transportation cost to reach our primary market area, its
    delivered cost can be competitive with coal from other domestic
    coal-producing regions. Our competitors may have, among other
21
Table of Contents
things, greater liquidity, greater access to credit and other
    financial resources, newer or more efficient equipment, lower
    cost structures, partnerships with transportation companies or
    more effective risk management policies and procedures. In
    addition, competition within the U.S. coal industry will
    increase in periods of reduced foreign demand for domestic coal,
    as more domestic coal production is marketed in the United
    States. Our failure to compete successfully with our competitors
    could have a material adverse effect on our business, financial
    condition or results of operations.
New and future regulatory requirements limiting greenhouse
    gas emissions could adversely affect coal-fired power generation
    and reduce the demand for coal as a fuel source, which could
    cause the price and quantity of the coal we sell to decline
    materially.
One major by-product of burning coal is carbon dioxide, which is
    a greenhouse gas and is a major source of concern with respect
    to global warming, also known as climate change. Climate change
    continues to attract public and scientific attention, and
    increasing government attention is being paid to reducing
    greenhouse gas emissions, including from coal-fired power
    plants. There are several regulatory proposals under
    consideration at the international, federal, state and local
    levels to limit emissions of greenhouse gases, including
    possible future U.S. treaty commitments, new federal or
    state legislation that may establish a
cap-and-trade,
and regulation under existing environmental laws by the
    U.S. Environmental Protection Agency, or the EPA. If
    enacted, these regulatory proposals and other efforts to reduce
    greenhouse gas emissions may require additional controls on, or
    the closure of, coal-fired power plants and industrial boilers,
    may cause some users of coal to switch from coal to a
    lower-carbon fuel, and may result in the construction of fewer
    new coal-fired power plants. For a more detailed discussion of
    these regulatory proposals, please read
    "Business — Regulation and Laws."
The permitting of new coal-fired power plants has also recently
    been contested, at times successfully, by state regulators and
    environmental advocacy organizations due to concerns related to
    greenhouse gas emissions from the new plants. Additionally, two
    U.S. federal appeals courts have allowed lawsuits to
    proceed by individuals, state attorneys general and others to
    pursue federal common law claims against major utility, coal,
    oil and chemical companies on the basis that those companies may
    have created a public nuisance due to their emissions of carbon
    dioxide.
The enactment of comprehensive laws to limit greenhouse gas
    emissions or the potential for liability or permitting issues
    based on greenhouse gas emissions may adversely affect the use
    of and demand for fossil fuels, particularly coal, which could
    have a material adverse effect on our business, financial
    condition or results of operations.
Existing and future regulatory requirements relating to
    sulfur dioxide and other air emissions could affect our
    customers and could reduce the demand for the high-sulfur coal
    we produce and cause coal prices and sales of our high-sulfur
    coal to decline materially.
Coal-fired power plants are subject to extensive environmental
    regulation, particularly with respect to air emissions. For
    example, the Clean Air Act Amendments of 1990, or the CAAA, and
    similar state and local laws place annual limits on the amount
    of sulfur dioxide, particulate matter, nitrogen oxides, mercury
    and other compounds that can be emitted into the air by electric
    power generators, which are the largest end-users of our coal.
    The ability of coal-fired power plants to burn the high-sulfur
    coal we produce may be limited unless they:
•
have already installed or will install costly pollution control
    devices such as scrubbers;
•
can purchase and use emission allowances; or
•
blend our high-sulfur coal with low-sulfur coal.
Projected demand growth for high-sulfur coal in our primary
    market area is largely dependent on planned installations of
    scrubbers at new and existing coal-fired power plants that use
    or plan to use high-sulfur coal as a fuel. The timing and amount
    of these scrubber installations may be affected by, among other
    things, anticipated changes in air quality regulations and the
    price and availability of sulfur dioxide emissions allowances.
    To the extent that these scrubber installations do not occur or
    are substantially delayed and
22
Table of Contents
sufficient sulfur dioxide allowances are unavailable or are
    prohibitively expensive, demand for our high-sulfur coal could
    materially decrease, which could have a material adverse effect
    on our business, financial condition or results of operations.
Our
    coal mining operations are subject to operating risks, which
    could result in materially increased operating expenses and
    decreased production levels and could have a material adverse
    effect on our business, financial condition or results of
    operations.
Our coal mining operations are subject to a number of operating
    risks beyond our control. Because we maintain very limited
    produced coal inventory, various conditions or events could
    disrupt operations, adversely affect production and shipments
    and increase the cost of mining at particular mines for varying
    lengths of time, which could have a material adverse effect on
    our business, financial condition or results of operations.
    These conditions and events include, among others:
•
poor mining conditions resulting from geologic, hydrologic or
    other conditions, which may cause instability of highwalls or
    spoil-piles or cause damage to nearby infrastructure;
•
adverse weather and natural disasters, such as heavy rains,
    flooding and other natural events affecting operations or
    transportation;
•
the unavailability of qualified labor and contractors;
•
the unavailability or increased prices of equipment (including
    heavy mobile equipment) or other critical supplies such as tires
    and explosives, fuel, lubricants and other consumables of the
    type, quantity or size needed to meet production expectations;
•
fluctuations in transportation costs and transportation delays
    or interruptions, including those caused by river flooding and
    lock closures for repairs;
•
delays, challenges to, and difficulties in acquiring,
    maintaining or renewing necessary permits, including
    environmental permits, or mineral and surface rights;
•
changes in or enhanced enforcement of current and future health,
    safety and environmental regulations or changes in
    interpretations of current regulations, including the
    classification of plant and animal species near our mines as
    endangered or threatened species;
•
mine accidents or other unforeseen casualty events;
•
employee injuries or fatalities;
•
increased or unexpected reclamation costs; and
•
the inability to monitor our mining operations due to
    disruptions or failures of our information technology systems.
These changes, conditions and events may materially increase our
    cost of mining and delay or halt production at particular mines
    either permanently or for varying lengths of time.
We maintain insurance coverage against some but not all
    potential losses to protect against the risks we face. We
    generally do not carry business interruption insurance and we
    may elect not to carry other types of insurance in the future if
    our management believes that the cost of available insurance is
    excessive relative to the risks presented. In addition, it is
    not possible to ensure fully against pollution and environmental
    risks. If a significant accident or other event occurs and is
    not fully covered by insurance, then that accident or other
    event could have a material adverse effect on our business,
    financial condition or results of operations.
We may
    not receive cash distributions from Harrison Resources in the
    future.
In January 2007, we entered into a joint venture, Harrison
    Resources, with CONSOL Energy to mine surface coal reserves
    purchased from CONSOL Energy. Since its inception, Harrison
    Resources has acquired 3.5 million tons of proven and
    probable coal reserves from CONSOL Energy. Pursuant to its
    operating agreement, all members of Harrison Resources must
    approve cash distributions, other than tax distributions to
23
Table of Contents
its members. The members of Harrison Resources have consistently
    approved cash distributions from Harrison Resources on a
    quarterly basis, including the $6.3 million that we
    received in 2009. In the future, however, there can be no
    assurance that we will receive regular cash distributions, as
    its members may prefer to keep cash in Harrison Resources
    instead of approving distributions. As a result, our ability to
    receive future distributions from Harrison Resources may be
    limited, which could have a material adverse effect on our
    ability to make cash distributions to our unitholders.
A
    significant portion of the cash available for distribution to
    our unitholders is derived from royalty payments we receive on
    our underground coal reserves, which we do not
    operate.
In June 2005, we sold our underground mining operations at the
    Tusky mining complex to an independent coal producer in Northern
    Appalachia. As part of the transaction, we subleased our
    underground coal reserves to this producer in exchange for an
    overriding royalty. Our overriding royalty is equal to a
    percentage of the sales price that our sublessee receives for
    the coal it produces and sells from our underground reserves.
    Our sublessee is also obligated to pay directly to our lessor a
    tonnage-based royalty on the production from these reserves. For
    the year ended December 31, 2009, we received royalty
    payments on our underground coal reserves from our sublessee of
    approximately $4.5 million, or approximately 8.9% of our
    Adjusted EBITDA for the year ended December 31, 2009. The
    royalty payments that we receive from our sublessee could be
    adversely affected by any of the following:
•
a substantial and extended decline in the sales price our
    sublessee receives for the coal it produces;
•
any decisions by our sublessee to reduce or discontinue
    production or sales of coal produced from our underground coal
    reserves;
•
any failure by our sublessee to properly manage its operations;
•
our sublessee's operational risks relating to our
    underground coal reserves, which expose our sublessee to
    operating conditions and events beyond its control, including
    the inability to acquire necessary permits, changes or
    variations in geologic conditions, changes in governmental
    regulation of the coal industry or the electric power industry,
    mining and processing equipment failures and unexpected
    maintenance problems, interruptions due to transportation
    delays, adverse weather and natural disasters, labor-related
    interruptions and fires and explosions; and
•
a material decline in the creditworthiness of our sublessee,
    including as a result of the current economic downturn.
As we do not operate the Tusky mining complex, our ability to
    address the risks discussed above will be limited. If the
    royalty payments we receive from our sublessee are reduced, our
    ability to make cash distributions to our unitholders could be
    adversely affected. In addition, we could lose our lease rights
    with our lessor if our sublessee fails to pay the tonnage-based
    royalty owed to our lessor and we fail to timely make our lessor
    whole for those unpaid royalties.
The
    amount of estimated maintenance capital expenditures our general
    partner is required to deduct from operating surplus each
    quarter is based on our current estimates and could increase in
    the future, resulting in a decrease in available cash from
    operating surplus that could be distributed to our
    unitholders.
Our partnership agreement requires our general partner to deduct
    from operating surplus each quarter estimated maintenance
    capital expenditures as opposed to actual maintenance capital
    expenditures in order to reduce disparities in operating surplus
    caused by fluctuating maintenance capital expenditures, such as
    reserve replacement costs or major refurbishment or replacement
    of mining equipment. Our initial annual estimated maintenance
    capital expenditures for purposes of calculating operating
    surplus will be $32.3 million. This amount is based on our
    current estimates of the amounts of expenditures we will be
    required to make in future years to maintain our depleting
    capital asset base, which we believe to be reasonable. This
    amount has been taken into consideration in calculating our
    forecast of cash available for distribution in "Cash
    Distribution Policy and Restrictions on Distributions." The
    initial amount of our estimated annual maintenance capital
    expenditures may be more than our initial actual maintenance
    capital expenditures, which will reduce the
24
Table of Contents
amount of available cash from operating surplus that we would
    otherwise have available for distribution to unitholders. The
    amount of estimated maintenance capital expenditures deducted
    from operating surplus is subject to review and change by the
    board of directors of our general partner at least once a year.
Increases
    in the cost of diesel fuel and explosives, or the inability to
    obtain a sufficient quantity of those supplies, could increase
    our operating expenses, disrupt or delay our production and have
    a material adverse effect on our profitability.
We use considerable quantities of diesel fuel in our mining
    operations. We typically hedge a large portion of our diesel
    fuel needs each year through fixed price forward contracts that
    provide for physical delivery (during 2009, we hedged 54.4% of
    our diesel fuel needs). We also recover a portion of our total
    fuel costs through full or partial cost pass through and
    inflation adjustment provisions in our long-term coal sales
    contracts. If the price of diesel fuel increases significantly
    and we are unable to recover all or a portion of those increases
    through these cost pass through or inflation adjustment
    provisions, our operating expenses will increase relative to our
    revenue, which could have a material adverse effect on our
    profitability. A significant amount of explosives are used in
    our mining operations. We use third party contractors to provide
    blasting services, and they generally pass through to us the
    cost of explosives, which are subject to fluctuations.
    Additionally, a limited number of suppliers exist for
    explosives, and any of these suppliers may divert their products
    to other buyers. Shortages in raw materials used in the
    manufacturing of explosives, which, in some cases, do not have
    ready substitutes, or the cancellation of supply contracts under
    which these raw materials are obtained, could increase the
    prices and limit the ability of our contractors to obtain these
    supplies.
Extensive
    environmental laws and regulations impose significant costs on
    our mining operations, and future laws and regulations could
    materially increase those costs or limit our ability to produce
    and sell coal.
The coal mining industry is subject to increasingly strict
    regulation by federal, state and local authorities with respect
    to environmental matters such as:
•
limitations on land use;
•
mine permitting and licensing requirements;
•
reclamation and restoration of mining properties after mining is
    completed;
•
management of materials generated by mining operations;
•
storage, treatment and disposal of wastes;
•
air quality standards;
•
water pollution;
•
protection of human health and the preservation of plants and
    animals, including endangered or threatened species;
•
protection of wetlands;
•
discharge of materials into the environment; and
•
effects of mining on surface water and groundwater quality and
    availability.
The costs of complying with these laws and regulations are
    significant. Although we believe that we are in substantial
    compliance, we may, in the future, experience violations that
    would subject us to administrative, civil and criminal penalties
    and a range of other possible sanctions. We may incur
    significant costs and liabilities resulting from claims for
    damages to property or injury to persons arising from our
    operations.
The enforcement of laws and regulations governing the coal
    mining industry has increased substantially for a number of
    reasons, including the recent occurrence of mining accidents at
    certain mines. Moreover, the trend is towards more stringent
    regulations and more vigorous enforcement of those laws and
    regulations particularly in light of the renewed focus by
    governmental agencies on the mining industry. Thus, the costs of
25
Table of Contents
compliance with those laws and regulations may become more
    costly and the consequences for any non-compliance may become
    more significant in the future.
New legislation or administrative regulations or new judicial
    interpretations or administrative enforcement of existing laws
    and regulations, including proposals related to the protection
    of the environment that would further regulate and tax the coal
    industry, may also require us to change operations significantly
    or incur increased costs. Such changes could have a material
    adverse effect on our business, financial condition or results
    of operations. Please read "Business — Regulation
    and Laws."
We may
    be unable to obtain, maintain or renew permits necessary for our
    operations, which would materially reduce our production, cash
    flows and profitability.
As is typical in the coal industry, our coal production is
    dependent on our ability to obtain the permits and approvals
    from federal and state regulatory authorities needed to mine our
    coal reserves within the timeline specified in our surface
    mining plan. The permitting rules, and the interpretations of
    these rules, are complex, change frequently, and are often
    subject to discretionary interpretations by regulators, all of
    which may make compliance more difficult or impractical, and may
    possibly preclude the continuance of ongoing mining operations
    or the development of future mining operations. In addition, the
    public, including non-governmental organizations, anti-mining
    groups and individuals, have certain statutory rights to comment
    upon and otherwise impact the permitting process, including
    through court intervention. Over the past few years, the length
    of time needed to bring a new surface mine into production has
    increased because of the increased time required to obtain
    necessary permits. The slowing pace at which permits are issued
    or renewed for new and existing mines has materially impacted
    expected production in certain regions, primarily in Central
    Appalachia, but could also affect Northern Appalachia, the
    Illinois Basin and other regions in the future.
Based on our current surface mining plan, we have proven and
    probable coal reserves with active permits that will allow us to
    mine for approximately three years. Typically, we submit the
    necessary permit applications 12 to 30 months before we
    plan to mine a new area. Some of our required mining permits are
    becoming increasingly difficult to obtain in a timely manner, or
    at all, and in some instances we have had to abandon or
    substantially delay the mining of coal in certain areas covered
    by the application in order to obtain required permits and
    approvals.
The Army Corps of Engineers, or the Corps, the EPA and the
    Department of the Interior recently announced an interagency
    action plan for an "enhanced review" of any project
    that requires a permit under both the Surface Mining Control and
    Reclamation Act of 1977, or SMCRA, and the federal Clean Water
    Act, or CWA, designed to reduce the harmful environmental
    consequences of mountain-top mining in the Appalachian region.
    As part of the June 2009 interagency memorandum of
    understanding, the Corps proposed to suspend and modify
    Nationwide Permit 21, or NWP 21, in the Appalachian region of
    Kentucky, Ohio, Pennsylvania, Tennessee, Virginia and West
    Virginia to prohibit its use to authorize discharges of fill
    material into waters of the United States for mountain-top
    mining. Two of our permit applications that cover
    1.1 million tons of our coal reserves are currently being
    reviewed by the EPA under its enhanced review procedures even
    though the mining activities in question do not utilize
    mountain-top mining, a method of mining we do not employ. As of
    March 19, 2010, the two permits have not been issued.
    Additional permits could be delayed in the future if the EPA
    continues to apply these enhanced review procedures to
    applications for these permits in connection with coal mining in
    Appalachia. If the required permits are not issued or renewed in
    a timely fashion or at all, or if permits issued or renewed are
    conditioned in a manner that restricts our ability to
    efficiently and economically conduct our mining activities, we
    could suffer a material reduction in our production, and our
    operations and there could be a material adverse effect on our
    ability to make cash distributions to our unitholders.
26
Table of Contents
We
    depend on a limited number of customers for a significant
    portion of our revenues, and the loss of, or significant
    reduction in, purchases by any of them could adversely affect
    our results of operations and cash available for distribution to
    our unitholders.
We derived 77% of our revenues from coal sales to our five
    largest customers for the year ended December 31, 2009, and
    as of March 19, 2010, we had long-term coal sales contracts
    in place with these same customers for 75% of our estimated coal
    production from operations for the year ending December 31,
    2010. We expect to continue to derive a substantial amount of
    our total revenues from a small number of customers in the
    future. However, we may be unsuccessful in renewing long-term
    coal sales contracts with our largest customers, and those
    customers may discontinue or reduce purchasing coal from us. If
    any of our largest customers significantly reduces the
    quantities of coal it purchases from us and if we are unable to
    sell such excess coal to our other customers on terms
    substantially similar to the terms under our current long-term
    coal sales contracts, our business, our results of operations
    and our ability to make distributions to our unitholders could
    be adversely affected.
If the
    assumptions underlying our reclamation and mine closure
    obligations are materially inaccurate, our costs could be
    significantly greater than anticipated.
All of the mines we operate are surface mining operations. The
    SMCRA and counterpart state laws and regulations establish
    operational, reclamation and closure standards for all aspects
    of surface mining. We estimate our total reclamation and
    mine-closing liabilities based on permit requirements,
    engineering studies, including the estimated life of our mines,
    and our engineering expertise related to the permit
    requirements. As of December 31, 2009, we had accrued a
    reserve of approximately $13.3 million for future
    reclamation and mine-closure liabilities. The estimate of
    ultimate reclamation liability is reviewed periodically by our
    management and engineers. The estimated liability can change
    significantly if actual costs vary from our original assumptions
    or if governmental regulations change significantly. GAAP
    requires that asset retirement obligations be recorded as a
    liability based on fair value, which reflects the present value
    of the estimated future cash flows. In estimating future cash
    flows, we consider the estimated current cost of reclamation and
    apply inflation rates and a third-party profit, as necessary.
    The third-party profit is an estimate of the approximate markup
    that would be charged by contractors for work performed on
    behalf of us. The resulting estimated reclamation and mine
    closure obligations could change significantly if actual results
    change significantly from our assumptions, which could have a
    material adverse effect on our financial condition or results of
    operations. Please read "Management's Discussion and
    Analysis of Financial Condition and Results of
    Operations — Liquidity and Capital
    Resources — Off-Balance Sheet Arrangements" for a
    description of these liabilities.
Debt
    we incur in the future may limit our flexibility to obtain
    financing and to pursue other business
    opportunities.
Our future level of debt could have important consequences to
    us, including the following:
•
our ability to obtain additional financing, if necessary, for
    working capital, capital expenditures, acquisitions or other
    purposes may be impaired or such financing may not be available
    on favorable terms;
•
our funds available for operations, future business
    opportunities and distributions to unitholders will be reduced
    by that portion of our cash flow required to make interest
    payments on our debt;
•
we may be more vulnerable to competitive pressures or a downturn
    in our business or the economy generally; and
•
our flexibility in responding to changing business and economic
    conditions may be limited.
Our ability to service our debt will depend upon, among other
    things, our future financial and operating performance, which
    will be affected by prevailing economic conditions and
    financial, business, regulatory and other factors, some of which
    are beyond our control. If our operating results are not
    sufficient to service our future indebtedness, we will be forced
    to take actions such as reducing distributions, reducing or
    delaying our
27
Table of Contents
business activities, acquisitions, investments or capital
    expenditures, selling assets or seeking additional equity
    capital. We may not be able to effect any of these actions on
    satisfactory terms or at all.
Restrictions
    in our new credit facility could adversely affect our business,
    financial condition, results of operations, ability to make
    distributions to unitholders and value of our common
    units.
We expect to enter into a new credit facility concurrently with
    the closing of the offering. Our new credit facility is likely
    to limit our ability to, among other things:
•
incur additional debt;
•
make distributions on or redeem or repurchase units;
•
make certain investments and acquisitions;
•
incur certain liens or permit them to exist;
•
enter into certain types of transactions with affiliates;
•
merge or consolidate with another company; and
•
transfer or otherwise dispose of assets.
Our new credit facility also will likely contain covenants
    requiring us to maintain certain financial ratios.
The provisions of our new credit facility may affect our ability
    to obtain future financing and pursue attractive business
    opportunities and our flexibility in planning for, and reacting
    to, changes in business conditions. In addition, a failure to
    comply with the provisions of our new credit facility could
    result in a default or an event of default that could enable our
    lenders to declare the outstanding principal of that debt,
    together with accrued and unpaid interest, to be immediately due
    and payable. If the payment of our debt is accelerated, our
    assets may be insufficient to repay such debt in full, and our
    unitholders could experience a partial or total loss of their
    investment.
The
    availability and reliability of transportation could impair our
    ability to supply coal to our customers.
Our coal is transported to customers by barge, truck and rail.
    Disruption of these transportation services because of
    weather-related problems (such as river flooding), mechanical
    difficulties, train derailment, bridge or structural concerns,
    infrastructure damage, whether caused by ground instability,
    accidents or otherwise, strikes, lock-outs, lack of fuel or
    maintenance items, fuel costs, transportation delays, accidents,
    terrorism or domestic catastrophe or other events could
    temporarily or over the long term impair our ability to supply
    coal to our customers and our customers' ability to take
    delivery of our coal and, therefore, could have a material
    adverse effect on our business, financial condition or results
    of operations.
Our
    operations may impact the environment or cause environmental
    contamination, which could result in material liabilities to
    us.
Our operations use hazardous materials, generate limited
    quantities of hazardous wastes and may affect runoff or drainage
    water. In the event of environmental contamination or a release
    of hazardous materials, we could become subject to claims for
    toxic torts, natural resource damages and other damages and for
    the investigation and clean up of soil, surface water,
    groundwater, and other media, as well as abandoned and closed
    mines located on property we operate. Such claims may arise out
    of conditions at sites that we currently own or operate, as well
    as at sites that we previously owned or operated, or may
    acquire. Our liability for such claims may be joint and several,
    so that we may be held responsible for more than our share of
    the contamination or other damages, or even for the entire share.
We maintain coal refuse areas and slurry impoundments at our
    Tuscarawas County and Muhlenberg County mining complexes. Such
    areas and impoundments are subject to extensive regulation. One
    of those impoundments overlies a mined out area, which can pose
    a heightened risk of structural failure and of damages arising
    out of such failure. When a slurry impoundment experiences a
    structural failure, it could
28
Table of Contents
release large volumes of coal slurry into the surrounding
    environment, which in turn can result in extensive damage to the
    environment and natural resources, such as bodies of water. A
    failure may also result in civil or criminal fines, penalties,
    personal injuries and property damages, and damage to wildlife
    or natural resources.
Surface or groundwater that comes in contact with materials
    resulting from mining activities can become acidic and contain
    elevated levels of dissolved metals, a condition referred to as
    "acid mine drainage," or AMD. We have seven mining
    permits that are identified on Ohio's Inventory of
    Long-Term AMD sites. Only one of these sites, associated with
    the Strasburg Wash Plant, requires continuous AMD treatment, for
    which we have estimated the present value of the projected
    annual treatment cost at less than $10,000 per year. While we
    anticipate that AMD treatment will not be required once
    reclamation is completed, it is possible that AMD treatment will
    be required for some time and current AMD treatment costs could
    escalate due to changes in flow or water quality. These and
    other similar impacts that our operations may have on the
    environment, as well as exposures to hazardous substances or
    wastes associated with our operations, could result in costs and
    liabilities that could have a material adverse effect on us.
If the
    third-party sources from which we purchase coal are unable to
    fulfill the delivery terms of their contracts, our results of
    operations could be adversely affected.
Based on our expected production for 2010, we will need to
    purchase coal from third-party sources to fulfill a portion of
    our committed coal deliveries for 2010 under our coal sales
    contracts. We have entered into a long-term coal purchase
    contract that will cover most of our expected coal purchases for
    2010 and a portion of our expected coal purchases for at least
    three years thereafter. The price we pay for the coal purchased
    under this contract is based on a minimum price and the price we
    receive under our long-term coal sales contracts for such coal.
    From time to time, we also purchase coal from other producers at
    spot prices. Our profitability and exposure to loss on our coal
    purchases are dependent upon the price of the coal we purchase
    and the reliability, including the financial viability, of the
    third-party coal producers from whom we purchase. Operational
    difficulties, changes in demand and other factors could affect
    the availability, pricing and quality of the coal we purchase
    and the price(s) at which we resell such purchased coal.
    Disruptions in the quantities or qualities of the coal we
    purchase could affect our ability to fill our customer orders or
    require us to purchase coal at higher prices from other sources
    in order to satisfy those orders. If we are unable to fill a
    customer order due to our inability to purchase coal from third
    parties in sufficient quantities, qualities or at attractive
    prices, our results of operations could be adversely affected.
Our
    ability to operate our business effectively could be impaired if
    we fail to attract and retain key management
    personnel.
Our ability to operate our business and implement our strategies
    depends, in part, on the continued contributions of Charles C.
    Ungurean and our other executive officers and key employees. In
    particular, we depend significantly on Mr. Ungurean's
    long-standing relationships within our industry. The loss of any
    of our senior executives could have a material adverse effect on
    our business unless and until we find a qualified replacement. A
    limited number of persons exist with the requisite experience
    and skills to serve in our senior management positions. We may
    not be able to locate or employ qualified executives on
    acceptable terms. In addition, we believe that our future
    success will depend on our continued ability to attract and
    retain highly skilled management personnel with coal industry
    experience. Competition for these persons in the coal industry
    is intense and we may not be able to successfully recruit, train
    or retain qualified managerial personnel. As a publicly traded
    partnership, our future success will also depend on our ability
    to hire and retain management with relevant experience. We may
    not be able to continue to employ key personnel or attract and
    retain qualified personnel in the future, and our failure to
    retain or attract key personnel could have a material adverse
    effect on our ability to effectively operate our business.
A
    shortage of skilled labor in the mining industry could reduce
    labor productivity and increase costs, which could have a
    material adverse effect on our business and results of
    operations.
Efficient coal mining using modern techniques and equipment
    requires skilled laborers in multiple disciplines such as
    equipment operators, mechanics and engineers, among others. We
    have from time to time
29
Table of Contents
encountered shortages for these types of skilled labor. If we
    experience shortages of skilled labor in the future, our labor
    and overall productivity or costs could be materially and
    adversely affected. If coal prices decrease in the future or our
    labor prices increase, or if we experience materially increased
    health and benefit costs with respect to our employees, our
    results of operations could be materially and adversely affected.
Our work force could become unionized in the future, which
    could adversely affect the stability of our production and
    materially reduce our profitability.
All of our mines are operated by non-union employees. Our
    employees have the right at any time under the National Labor
    Relations Act to form or affiliate with a union. If our
    employees choose to form or affiliate with a union and the terms
    of a union collective bargaining agreement are significantly
    different from our current compensation and job assignment
    arrangements with our employees, these arrangements could
    adversely affect the stability of our production and materially
    reduce our profitability.
Inaccuracies in our estimates of our coal reserves could
    result in lower than expected revenues or higher than expected
    costs.
Our future performance depends on, among other things, the
    accuracy of the estimates of our proven and probable coal
    reserves. The estimates of our proven and probable reserves
    associated with our surface mining operations in Ohio are
    derived from our internal estimates, which estimates were
    audited by John T. Boyd Company, an independent mining and
    geological consulting firm. The estimates of our proven and
    probable reserves associated with our surface mining operations
    in the Illinois Basin and our proven and probable underground
    coal reserves are derived from reserve reports prepared by
    John T. Boyd Company. These estimates are based on geologic
    data, economic data such as cost of production and projected
    sale prices and assumptions concerning permitability and
    advances in mining technology. The estimates of our proven and
    probable coal reserves as to both quantity and quality are
    periodically updated to reflect the production of coal from the
    reserves, updated geologic models and mining recovery data, coal
    reserves recently purchased or otherwise acquired and estimated
    costs of production and sales prices. There are numerous factors
    and assumptions inherent in estimating the quantities and
    qualities of, and costs to mine, coal reserves, any one of which
    may vary considerably from actual results. These factors and
    assumptions include:
•
quality of the coal;
•
geologic and mining conditions, which may not be fully
    identified by available exploration data or may differ from our
    experiences in areas where we currently mine;
•
the percentage of coal ultimately recoverable;
•
the assumed effects of regulation, including the issuance of
    required permits, and taxes, including severance and excise
    taxes and royalties, and other payments to governmental agencies;
•
assumptions concerning the timing for the development of
    reserves; and
•
assumptions concerning equipment and productivity, future coal
    prices, operating costs, including for critical supplies such as
    fuel, tires and explosives, capital expenditures and development
    and reclamation costs.
As a result, estimates of the quantities and qualities of
    economically recoverable coal attributable to any particular
    group of properties, classifications of reserves based on risk
    of recovery, estimated cost of production, and estimates of
    future net cash flows expected from these properties as prepared
    by different engineers and accounting personnel, or by the same
    engineers and accounting personnel at different times, may vary
    materially due to changes in the above factors and assumptions.
    Actual production recovered from identified reserve areas and
    properties, and revenues and expenditures associated with our
    mining operations, may vary materially from estimates. Any
    inaccuracy in the estimates related to our reserves could have a
    material adverse effect on our ability to make cash
    distributions.
Our ability to collect payments from our customers could
    be impaired if their creditworthiness deteriorates.
Our ability to receive payment for coal sold and delivered
    depends on the continued creditworthiness of our customers. The
    current economic volatility and tightening credit markets
    increase the risk that we may not
30
Table of Contents
be able to collect payments from our customers or be required to
    continue to deliver coal even if the customer's
    creditworthiness deteriorates. A continuation or worsening of
    current economic conditions or other prolonged global or
    U.S. recessions could also impact the creditworthiness of
    our customers.
Approximately 12% of our 2009 sales were to coal brokers, who
    resell our coal to end users, including utilities. Under some of
    these arrangements, we have contractual privity only with the
    broker and may not be able to pursue claims against the end
    users in connection with these sales if we do not receive
    payment from the broker, who may only have limited assets. We
    expect our sales through brokers to increase in 2010.
If the creditworthiness of a customer declines, this would
    increase the risk that we may not be able to collect payment for
    all coal sold and delivered to or on behalf of that customer. If
    we determine that a customer is not creditworthy, we may not be
    required to deliver coal under the customer's coal sales
    contract. If we are able to withhold shipments, we may decide to
    sell the customer's coal on the spot market, which may be
    at prices lower than the contract price, or we may be unable to
    sell the coal at all. Furthermore, the bankruptcy of any of our
    customers could have a material adverse effect on our financial
    position. In addition, competition with other coal suppliers
    could force us to extend credit to customers and on terms that
    could increase the risk of payment default.
Failure to obtain, maintain or renew our security
    arrangements, such as surety bonds or letters of credit, in a
    timely manner and on acceptable terms could have an adverse
    effect on our cash available for distribution to our
    unitholders.
Federal and state laws require us to secure the performance of
    certain long-term obligations, such as mine closure or
    reclamation costs. The amount of these security arrangements is
    substantial, with total amounts of surety bonds at
    December 31, 2009 of approximately $31.3 million,
    which were supported by letters of credit of $6.9 million.
    Federal and state governments could increase bonding
    requirements in the future. Certain business transactions, such
    as coal leases and other obligations, may also require bonding.
    We may have difficulty procuring or maintaining our surety
    bonds. Our bond issuers may demand higher fees, additional
    collateral, including putting up letters of credit or posting
    cash collateral, or other terms less favorable to us upon those
    renewals. Our ability to obtain or renew our surety bonds could
    be impacted by a variety of other factors including lack of
    availability, unfavorable market terms, the exercise by
    third-party surety bond issuers of their right to refuse to
    renew the surety bonds and restrictions on availability of
    collateral for current and future third-party surety bond
    issuers under the terms of any credit arrangements then in
    place. Surety bond issuers may demand terms that are less
    favorable to us than the terms we currently receive and there
    may be fewer companies willing to issue these bonds. Due to
    current economic conditions and the volatility of the financial
    markets, surety bond providers may be less willing to provide us
    with surety bonds or maintain existing surety bonds and we may
    have greater difficulty satisfying the liquidity requirements
    under our existing surety bond contracts. If we do not maintain
    sufficient borrowing capacity or have other resources to satisfy
    our surety and bonding requirements, our operations and cash
    available for distribution to our unitholders could be adversely
    affected.
Our management team does not have experience managing our
    business as a stand-alone publicly traded partnership, and if
    they are unable to manage our business as a publicly traded
    partnership our business may be affected.
Our management team does not have experience managing our
    business as a publicly traded partnership. If we are unable to
    manage and operate our partnership as a publicly traded
    partnership, our business and results of operations will be
    adversely affected.
We will be required by Section 404 of the
    Sarbanes-Oxley Act to evaluate the effectiveness of our internal
    controls. If we are unable to establish and maintain effective
    internal controls, our financial condition and operating results
    could be adversely affected.
We are in the process of evaluating our internal controls
    systems to allow management to report on, and our independent
    auditors to audit, our internal controls over financial
    reporting. We are also in the process of performing the system
    and process evaluation and testing (and any necessary
    remediation) required to comply with the management
    certification and auditor attestation requirements of
    Section 404 of the Sarbanes-Oxley Act of 2002. We will be
    required to comply with Section 404 for the year ending
    December 31, 2011.
31
Table of Contents
However, we cannot be certain as to the timing of completion of
    our evaluation, testing and remediation actions or the impact of
    the same on our operations. Furthermore, upon completion of this
    process, we may identify control deficiencies of varying degrees
    of severity under applicable SEC and Public Company Accounting
    Oversight Board rules and regulations that remain unremediated.
    As a public company, we will be required to report, among other
    things, control deficiencies that constitute a "material
    weakness" or changes in internal controls that, or that are
    reasonably likely to, materially affect internal controls over
    financial reporting. A "material weakness" is a
    significant deficiency or combination of significant
    deficiencies that results in more than a remote likelihood that
    a material misstatement of the annual or interim consolidated
    financial statements will not be prevented or detected. In
    connection with the audit of our financial statements, a
    significant deficiency in our internal controls was identified
    that related to 2008. This significant deficiency related to the
    timeliness and thoroughness of our account reconciliation and
    review procedures. Management has taken steps to remediate this
    significant deficiency by restructuring and refining its account
    reconciliation process and tracking. While we believe that this
    significant deficiency has been remediated, we may have
    additional significant deficiencies in the future.
If we fail to implement the requirements of Section 404 in
    a timely manner, we might be subject to sanctions or
    investigation by regulatory authorities such as the SEC. In
    addition, failure to comply with Section 404 or the report
    by us of a material weakness may cause investors to lose
    confidence in our consolidated financial statements, and as a
    result our unit price may be adversely affected. If we fail to
    remedy any material weakness, our consolidated financial
    statements may be inaccurate, we may face restricted access to
    the capital markets and our unit price may be adversely affected.
Terrorist attacks and threats, escalation of military
    activity in response to these attacks or acts of war could have
    a material adverse effect on our business, financial condition
    or results of operations.
Terrorist attacks and threats, escalation of military activity
    or acts of war may have significant effects on general economic
    conditions, fluctuations in consumer confidence and spending and
    market liquidity, each of which could materially and adversely
    affect our business. Future terrorist attacks, rumors or threats
    of war, actual conflicts involving the United States or its
    allies, or military or trade disruptions affecting our customers
    may significantly affect our operations and those of our
    customers. Strategic targets, such as energy-related assets and
    transportation assets, may be at greater risk of future
    terrorist attacks than other targets in the United States.
    Disruption or significant increases in energy prices could
    result in government-imposed price controls. It is possible that
    any of these occurrences, or a combination of them, could have a
    material adverse effect on our business, financial condition and
    results of operations.
Risks
    Inherent in an Investment in Us
Our partnership agreement limits our general
    partner's fiduciary duties to our unitholders and restricts
    the remedies available to our unitholders for actions taken by
    our general partner that might otherwise constitute breaches of
    fiduciary duty.
Fiduciary duties owed to our unitholders by our general partner
    are prescribed by law and the partnership agreement. The
    Delaware Revised Uniform Limited Partnership Act, or the
    Delaware Act, provides that Delaware limited partnerships may,
    in their partnership agreements, restrict the fiduciary duties
    owed by the general partner to limited partners and the
    partnership. Our partnership agreement contains provisions that
    reduce the standards to which our general partner would
    otherwise be held by state fiduciary duty law. For example, our
    partnership agreement:
•
limits the liability and reduces the fiduciary duties of our
    general partner, while also restricting the remedies available
    to our unitholders for actions that, without these limitations,
    might constitute breaches of fiduciary duty. As a result of
    purchasing common units, our unitholders consent to some actions
    and conflicts of interest that might otherwise constitute a
    breach of fiduciary or other duties under applicable state law;
•
permits our general partner to make a number of decisions in its
    individual capacity, as opposed to in its capacity as our
    general partner. This entitles our general partner to consider
    only the interests and
32
Table of Contents
factors that it desires, and it has no duty or obligation to
    give any consideration to any interest of, or factors affecting,
    us, our affiliates or any limited partner. Examples include the
    exercise of its limited call right, its voting rights with
    respect to the units it owns, its registration rights and its
    determination whether or not to consent to any merger or
    consolidation of the partnership;
•
provides that our general partner shall not have any liability
    to us or our unitholders for decisions made in its capacity as
    general partner so long as it acted in good faith, meaning it
    believed that the decision was in the best interests of the
    partnership;
•
generally provides that affiliated transactions and resolutions
    of conflicts of interest not approved by the conflicts committee
    of the board of directors of our general partner, or the
    Conflicts Committee, and not involving a vote of our unitholders
    must be on terms no less favorable to us than those generally
    being provided to or available from unrelated third parties or
    be "fair and reasonable" to us and that, in
    determining whether a transaction or resolution is "fair
    and reasonable," our general partner may consider the
    totality of the relationships between the parties involved,
    including other transactions that may be particularly
    advantageous or beneficial to us; and
•
provides that our general partner and its officers and directors
    will not be liable for monetary damages to us, our limited
    partners or assignees for any acts or omissions unless there has
    been a final and non-appealable judgment entered by a court of
    competent jurisdiction determining that our general partner or
    those other persons acted in bad faith or engaged in fraud or
    willful misconduct.
By purchasing a common unit, a common unitholder will become
    bound by the provisions of the partnership agreement, including
    the provisions described above. Please read "Description of
    the Common Units — Transfer of Common Units."
Our
    general partner and its affiliates have conflicts of interest,
    and their limited fiduciary duties to our unitholders may permit
    them to favor their own interests to the detriment of our
    unitholders.
Following the offering, C&T Coal will own
    a     % limited partner interest in us
    (or a     % limited partner interest in
    us if the underwriters exercise their option to purchase
    additional common units in full), AIM Oxford will own
    a     % limited partner interest in us
    (or a     % limited partner interest in
    us if the underwriters exercise their option to purchase
    additional common units in full), and C&T Coal and AIM
    Oxford will own and control our general partner. Although our
    general partner has certain fiduciary duties to manage us in a
    manner beneficial to us and our unitholders, the executive
    officers and directors of our general partner have a fiduciary
    duty to manage our general partner in a manner beneficial to its
    owners. Furthermore, since certain executive officers and
    directors of our general partner are executive officers or
    directors of affiliates of our general partner, conflicts of
    interest may arise between C&T Coal and AIM Oxford and
    their affiliates, including our general partner, on the one
    hand, and us and our unitholders, on the other hand. As a result
    of these conflicts, our general partner may favor its own
    interests and the interests of its affiliates over the interests
    of our unitholders. Please read "— Our
    partnership agreement limits our general partner's
    fiduciary duties to our unitholders and restricts the remedies
    available to our unitholders for actions taken by our general
    partner that might otherwise constitute breaches of fiduciary
    duty." The risk to our unitholders due to such conflicts
    may arise because of the following factors, among others:
•
our general partner is allowed to take into account the
    interests of parties other than us, such as C&T Coal and
    AIM Oxford, in resolving conflicts of interest, which has the
    effect of limiting its fiduciary duty to our unitholders;
•
neither our partnership agreement nor any other agreement
    requires owners of our general partner to pursue a business
    strategy that favors us. Executive officers and directors of our
    general partner's owners have a fiduciary duty to make
    these decisions in the best interest of their owners, which may
    be contrary to our interests;
•
our general partner determines the amount and timing of asset
    purchases and sales, capital expenditures, borrowings, issuances
    of additional partnership securities and reserves, each of which
    can affect the amount of cash that is available for distribution
    to our unitholders;
33
Table of Contents
•
our general partner determines our estimated maintenance capital
    expenditures, which reduce operating surplus, and that
    determination can affect the amount of cash that is distributed
    to our unitholders and the ability of the subordinated units to
    convert to common units;
•
in some instances, our general partner may cause us to borrow
    funds in order to permit the payment of cash distributions, even
    if the purpose or effect of the borrowing is to make a
    distribution on the subordinated units, to make incentive
    distributions or to accelerate the expiration of the
    subordination periods;
•
our general partner determines which costs incurred by it and
    its affiliates are reimbursable by us;
•
our partnership agreement does not restrict our general partner
    from causing us to pay it or its affiliates for any services
    rendered on terms that are fair and reasonable to us or entering
    into additional contractual arrangements with any of these
    entities on our behalf;
•
our general partner intends to limit its liability regarding our
    contractual and other obligations;
•
our general partner may exercise its limited right to call and
    purchase common units if it and its affiliates own more than 80%
    of the common units;
•
our general partner controls the enforcement of obligations owed
    to us by it and its affiliates; and
•
our general partner decides whether to retain separate counsel,
    accountants or others to perform services for us.
In addition, AIM currently holds substantial interests in other
    companies in the energy and natural resource sectors. Our
    partnership agreement provides that our general partner will be
    restricted from engaging in any business activities other than
    acting as our general partner and those activities incidental to
    its ownership interest in us. However, AIM and AIM Oxford are
    not prohibited from engaging in other businesses or activities,
    including those that might be in direct competition with us. As
    a result, they could potentially compete with us for acquisition
    opportunities and for new business or extensions of the existing
    services provided by us. Please read "Conflicts of Interest
    and Fiduciary Duties — Conflicts of Interest —
    AIM Oxford and AIM, affiliates of our general partner, may
    compete with us."
Pursuant to the terms of our partnership agreement, the doctrine
    of corporate opportunity, or any analogous doctrine, does not
    apply to our general partner or any of its affiliates, including
    its executive officers, directors and owners. Any such person or
    entity that becomes aware of a potential transaction, agreement,
    arrangement or other matter that may be an opportunity for us
    will not have any duty to communicate or offer such opportunity
    to us. Any such person or entity will not be liable to us or to
    any limited partner for breach of any fiduciary duty or other
    duty by reason of the fact that such person or entity pursues or
    acquires such opportunity for itself, directs such opportunity
    to another person or entity or does not communicate such
    opportunity or information to us. This may create actual and
    potential conflicts of interest between us and affiliates of our
    general partner and result in less than favorable treatment of
    us and our unitholders. Please read "Conflicts of Interest
    and Fiduciary Duties."
Our unitholders have limited voting rights and are not
    entitled to elect our general partner or its directors or
    initially to remove our general partner without its
    consent.
Unlike the holders of common stock in a corporation, our
    unitholders have only limited voting rights on matters affecting
    our business and, therefore, limited ability to influence
    management's decisions regarding our business. Our
    unitholders will have no right to elect our general partner or
    its board of directors on an annual or other continuing basis.
    The board of directors of our general partner is chosen entirely
    by its members and not by our unitholders. Furthermore, if our
    unitholders are dissatisfied with the performance of our general
    partner, they will have limited ability to remove our general
    partner.
Our unitholders will be unable initially to remove our general
    partner without its consent because affiliates of our general
    partner will own sufficient units upon the consummation of this
    offering to be able to prevent removal of our general partner.
    The vote of the holders of at least 80% of all outstanding
    common units and subordinated units voting together as a single
    class is required to remove our general partner.
34
Table of Contents
Following the closing of this offering, affiliates of our
    general partner will own     % of our
    common units and subordinated units
    (or     % of our common units and
    subordinated units, if the underwriters exercise their option to
    purchase additional common units in full). Also, if our general
    partner is removed without cause during the subordination period
    and units held by our general partner and its affiliates are not
    voted in favor of that removal, all remaining subordinated units
    will automatically be converted into common units and any
    existing arrearages on the common units will be extinguished. A
    removal of our general partner under these circumstances would
    adversely affect the common units by prematurely eliminating
    their distribution and liquidation preference over the
    subordinated units, which would otherwise have continued until
    we had met certain distribution and performance tests.
Cause is narrowly defined in our partnership agreement to mean
    that a court of competent jurisdiction has entered a final,
    non-appealable judgment finding our general partner liable for
    actual fraud or willful misconduct in its capacity as our
    general partner. Cause does not include most cases of charges of
    poor management of the business, so the removal of our general
    partner during the subordination period because of our
    unitholders' dissatisfaction with our general
    partner's performance in managing our partnership will most
    likely result in the termination of the subordination period. As
    a result of these limitations, the price at which the common
    units will trade could be diminished because of the absence or
    reduction of a takeover premium in the trading price.
Our unitholders will experience immediate and substantial
    dilution of $      per common
    unit.
The assumed initial public offering price of
    $      per common unit exceeds pro
    forma net tangible book value of $     
    per common unit. As a result, our unitholders will incur
    immediate and substantial dilution of
    $      per common unit. This dilution
    results primarily because the assets contributed to us by
    affiliates of our general partner are recorded at their
    historical cost and not their fair value. Please read
    "Dilution."
The control of our general partner may be transferred to a
    third party without unitholder consent.
Our general partner may transfer its general partner interest in
    us to a third party in a merger or in a sale of all or
    substantially all of its assets without the consent of our
    unitholders. Furthermore, there is no restriction in our
    partnership agreement on the ability of the members of our
    general partner to transfer their respective membership
    interests in our general partner to a third party. The new
    members of our general partner would then be in a position to
    replace the board of directors and executive officers of our
    general partner with their own choices and to control the
    decisions and actions of the board of directors and executive
    officers of our general partner.
The incentive distribution rights of our general partner
    may be transferred to a third party without unitholder
    consent.
Our general partner may transfer its incentive distribution
    rights to a third party at any time without the consent of our
    unitholders. If our general partner transfers its incentive
    distribution rights to a third party but retains its general
    partner interest, our general partner may not have the same
    incentive to grow our partnership and increase quarterly
    distributions to unitholders over time as it would if it had
    retained ownership of its incentive distribution rights.
Our general partner has a limited call right that may
    require our unitholders to sell their common units at an
    undesirable time or price.
Upon consummation of this offering, C&T Coal and AIM Oxford
    will own an aggregate of     % of our
    common units and subordinated units
    (or     % of our common units and
    subordinated units, if the underwriters exercise their option to
    purchase additional common units in full). If at any time our
    general partner and its affiliates own more than 80% of the
    common units, our general partner will have the right, but not
    the obligation, which it may assign to any of its affiliates or
    to us, to acquire all, but not less than all, of the common
    units held by unaffiliated persons at a price not less than the
    then-current market price. As a result, our unitholders may be
    required to sell their common units at an undesirable time or
    price and may not receive any return on their investment. Our
    unitholders may also incur a tax liability upon a sale of their
    common units. Our general partner is not obligated to obtain a
    fairness opinion regarding the value of the common units to be
    repurchased by it upon exercise of the limited call right. There
    is no restriction in our
35
Table of Contents
partnership agreement that prevents our general partner from
    issuing additional common units and exercising its limited call
    right. If our general partner exercised its limited call right,
    the effect would be to take us private and, if the common units
    were subsequently deregistered, we would no longer be subject to
    the reporting requirements of the Securities Exchange Act of
    1934, or the Exchange Act. For additional information about the
    limited call right, please read "The Partnership
    Agreement — Limited Call Right."
We may issue additional units without unitholder approval,
    which would dilute unitholder interests.
At any time, we may issue an unlimited number of limited partner
    interests of any type without the approval of our unitholders.
    Further, our partnership agreement does not prohibit the
    issuance of equity securities that may effectively rank senior
    to our common units. The issuance by us of additional common
    units or other equity securities of equal or senior rank will
    have the following effects:
•
our unitholders' proportionate ownership interest in us
    will decrease;
•
the amount of cash available for distribution on each unit may
    decrease;
•
because a lower percentage of total outstanding units will be
    subordinated units, the risk that a shortfall in the payment of
    the minimum quarterly distribution will be borne by our common
    unitholders will increase;
•
the relative voting strength of each previously outstanding unit
    may be diminished; and
•
the market price of the common units may decline.
Our general partner may, without unitholder approval,
    elect to cause us to issue common units and general partner
    units to it in connection with a resetting of the target
    distribution levels related to its incentive distribution
    rights. This could result in lower distributions to holders of
    our common units.
Our general partner has the right, at any time when there are no
    subordinated units outstanding and it has received distributions
    on its incentive distribution rights at the highest level to
    which it is entitled (48%) for each of the prior four
    consecutive fiscal quarters, to reset the initial target
    distribution levels at higher levels based on our distributions
    at the time of the exercise of the reset election. Following a
    reset election by our general partner, the minimum quarterly
    distribution will be adjusted to equal the reset minimum
    quarterly distribution and the target distribution levels will
    be reset to correspondingly higher levels based on percentage
    increases above the reset minimum quarterly distribution.
If our general partner elects to reset the target distribution
    levels, it will be entitled to receive a number of common units
    and general partner units. The number of common units to be
    issued to our general partner will be equal to that number of
    common units that would have entitled their holder to an average
    aggregate quarterly cash distribution in the prior two quarters
    equal to the average of the distributions to our general partner
    on the incentive distribution rights in the prior two quarters.
    Our general partner will be issued the number of general partner
    units necessary to maintain our general partner's interest
    in us that existed immediately prior to the reset election. We
    anticipate that our general partner would exercise this reset
    right in order to facilitate acquisitions or internal growth
    projects that would not be sufficiently accretive to cash
    distributions per common unit without such conversion. It is
    possible, however, that our general partner could exercise this
    reset election at a time when it is experiencing, or expects to
    experience, declines in the cash distributions it receives
    related to its incentive distribution rights and may, therefore,
    desire to be issued common units rather than retain the right to
    receive distributions on its incentive distribution rights based
    on the initial target distribution levels. As a result, a reset
    election may cause our common unitholders to experience a
    reduction in the amount of cash distributions that our common
    unitholders would have otherwise received had we not issued new
    common units and general partner units to our general partner in
    connection with resetting the target distribution levels. Please
    read "How We Make Cash Distributions — General
    Partner's Right to Reset Incentive Distribution
    Levels."
Cost reimbursements due to our general partner and its
    affiliates will reduce cash available for distribution to our
    unitholders.
Prior to making any distribution on the common units, we will
    reimburse our general partner and its affiliates for all
    expenses they incur on our behalf, which will be determined by
    our general partner in its sole
36
Table of Contents
discretion in accordance with the terms of our partnership
    agreement. In determining the costs and expenses allocable to
    us, our general partner is subject to its fiduciary duty, as
    modified by our partnership agreement, to the limited partners,
    which requires it to act in good faith. These expenses will
    include all costs incurred by our general partner and its
    affiliates in managing and operating us. We are managed and
    operated by executive officers and directors of our general
    partner. Please read "Cash Distribution Policy and
    Restrictions on Distributions," "Certain Relationships
    and Related Party Transactions" and "Conflicts of
    Interest and Fiduciary Duties — Conflicts of
    Interest." The reimbursement of expenses and payment of
    fees, if any, to our general partner and its affiliates could
    reduce the amount of available cash for distribution to our
    unitholders.
There is no existing market for our common units, and a
    trading market that will provide you with adequate liquidity may
    not develop. The price of our common units may fluctuate
    significantly, and our unitholders could lose all or part of
    their investment.
Prior to the offering, there has been no public market for the
    common units. After the offering, there will be
    only          
    publicly traded common units
    (or          
    publicly traded common units, if the underwriters exercise their
    option to purchase additional common units in full). We do not
    know the extent to which investor interest will lead to the
    development of a trading market or how liquid that market might
    be. Our unitholders may not be able to resell their common units
    at or above the initial public offering price. Additionally, the
    lack of liquidity may result in wide bid-ask spreads, contribute
    to significant fluctuations in the market price of the common
    units and limit the number of investors who are able to buy the
    common units. The initial public offering price for the common
    units has been determined by negotiations between us and the
    representative of the underwriters and may not be indicative of
    the market price of the common units that will prevail in the
    trading market. The market price of our common units may decline
    below the initial public offering price. The market price of our
    common units may also be influenced by many factors, some of
    which are beyond our control, including:
•
our quarterly distributions;
•
our quarterly or annual earnings or those of other companies in
    our industry;
•
loss of a large customer;
•
announcements by us or our competitors of significant contracts
    or acquisitions;
•
changes in accounting standards, policies, guidance,
    interpretations or principles;
•
changes in interest rates;
•
general economic conditions;
•
the failure of securities analysts to cover our common units
    after this offering or changes in financial estimates by
    analysts;
•
future sales of our common units; and
•
the other factors described in these "Risk Factors."
We
    will incur increased costs as a result of being a publicly
    traded partnership.
We have no history operating as a publicly traded partnership.
    As a publicly traded partnership, we will incur significant
    legal, accounting and other expenses that we did not incur as a
    private company. We expect that complying with the rules and
    regulations implemented by the SEC and the New York Stock
    Exchange will increase our legal and financial compliance costs
    and make activities more time-consuming and costly. For example,
    as a result of becoming a publicly traded partnership, we are
    required to have three independent directors, create additional
    board committees and adopt policies regarding internal controls
    and disclosure controls and procedures, including the
    preparation of reports on internal controls over financial
    reporting. In addition, we will incur additional costs
    associated with our publicly traded partnership reporting
    requirements.
Our unitholders who fail to furnish certain information
    requested by our general partner or who our general partner,
    upon receipt of such information, determines are not eligible
    citizens will not be entitled to
37
Table of Contents
receive distributions or allocations of income or loss on
    their common units and their common units will be subject to
    redemption.
Our general partner may require each limited partner or assignee
    to furnish information about his nationality, citizenship or
    related status. If a limited partner or assignee fails to
    furnish information about his nationality, citizenship or other
    related status within 30 days after a request for the
    information or our general partner determines after receipt of
    the information that the limited partner or assignee is not an
    eligible citizen, the limited partner or assignee may be treated
    as a non-citizen assignee. In addition to other limitations on
    the rights of an assignee that is not a limited partner, a
    non-citizen assignee does not have the right to direct the
    voting of his units and may not receive distributions in kind
    upon our liquidation. Furthermore, we have the right to redeem
    all of the common units and subordinated units of any holder
    that is not an eligible citizen or fails to furnish the
    requested information. The redemption price will be paid in cash
    or by delivery of a promissory note, as determined by our
    general partner. Please read "The Partnership
    Agreement — Non-Citizen Assignees; Redemption."
Our unitholders may have liability to repay
    distributions.
Under certain circumstances, our unitholders may have to repay
    amounts wrongfully returned or distributed to them. Under
Section 17-607
of the Delaware Act, we may not make a distribution to our
    unitholders if the distribution would cause our liabilities to
    exceed the fair value of our assets. Delaware law provides that,
    for a period of three years from the date of the impermissible
    distribution, limited partners who received the distribution and
    who knew at the time of the distribution that it violated
    Delaware law will be liable to the limited partnership for the
    distribution amount. Purchasers of units who become limited
    partners are liable for the obligations of the transferring
    limited partner to make contributions to the partnership that
    are known to the purchaser of units at the time it became a
    limited partner and for unknown obligations if the liabilities
    could be determined from the partnership agreement. Liabilities
    to partners on account of their partnership interests and
    liabilities that are non-recourse to the partnership are not
    counted for purposes of determining whether a distribution is
    permitted.
Our general partner may mortgage, pledge or grant a
    security interest in all or substantially all of our assets
    without prior approval of our unitholders.
Our general partner may mortgage, pledge or grant a security
    interest in all or substantially all of our assets without prior
    approval of our unitholders. If our general partner secures our
    obligations or indebtedness by all or substantially all of our
    assets and if we are unable to satisfy such obligations or repay
    such indebtedness, the lenders could seek to foreclose on our
    assets. The lenders may also sell all or substantially all of
    our assets under such foreclosure or other realization upon
    those encumbrances without prior approval of our unitholders,
    which could adversely affect the price of our common units.
Tax
    Risks
In addition to reading the following risk factors, please read
    "Material Federal Income Tax Consequences" for a more
    complete discussion of the expected material federal income tax
    consequences of owning and disposing of common units.
Our
    tax treatment depends on our status as a partnership for federal
    income tax purposes. If the IRS were to treat us as a
    corporation for federal income tax purposes, which would subject
    us to entity-level taxation, then our cash available for
    distribution to our unitholders would be substantially
    reduced.
The anticipated after-tax economic benefit of an investment in
    the common units depends largely on our being treated as a
    partnership for federal income tax purposes. We have not
    requested, and do not plan to request, a ruling from the IRS on
    this or any other tax matter affecting us.
Despite the fact that we are a limited partnership under
    Delaware law, it is possible in certain circumstances for a
    partnership such as ours to be treated as a corporation for
    federal income tax purposes. Although we do not believe based
    upon our current operations that we are or will be so treated, a
    change in our business or a change in current law could cause us
    to be treated as a corporation for federal income tax purposes
    or otherwise subject us to taxation as an entity.
38
Table of Contents
If we were treated as a corporation for federal income tax
    purposes, we would pay federal income tax on our taxable income
    at the corporate tax rate, which is currently a maximum of 35%,
    and would likely pay state and local income tax at varying
    rates. Distributions would generally be taxed again as corporate
    distributions (to the extent of our current and accumulated
    earnings and profits), and no income, gains, losses, deductions,
    or credits would flow through to you. Because a tax would be
    imposed upon us as a corporation, our cash available for
    distribution to you would be substantially reduced. Therefore,
    if we were treated as a corporation for federal income tax
    purposes there would be material reduction in the anticipated
    cash flow and after-tax return to our unitholders, likely
    causing a substantial reduction in the value of our common units.
Our partnership agreement provides that, if a law is enacted or
    existing law is modified or interpreted in a manner that
    subjects us to taxation as a corporation or otherwise subjects
    us to entity-level taxation for federal, state or local income
    tax purposes, the minimum quarterly distribution amount and the
    target distribution amounts may be adjusted to reflect the
    impact of that law on us.
If we
    were subjected to a material amount of additional entity-level
    taxation by individual states, it would reduce our cash
    available for distribution to our unitholders.
Changes in current state law may subject us to additional
    entity-level taxation by individual states. Because of
    widespread state budget deficits and other reasons, several
    states are evaluating ways to subject partnerships to
    entity-level taxation through the imposition of state income,
    franchise and other forms of taxation. Imposition of any such
    taxes may substantially reduce the cash available for
    distribution to you. Our partnership agreement provides that, if
    a law is enacted or existing law is modified or interpreted in a
    manner that subjects us to entity-level taxation, the minimum
    quarterly distribution amount and the target distribution
    amounts may be adjusted to reflect the impact of that law on us.
The
    tax treatment of publicly traded partnerships or an investment
    in our common units could be subject to potential legislative,
    judicial or administrative changes and differing
    interpretations, possibly on a retroactive basis.
The present federal income tax treatment of publicly traded
    partnerships, including us, or an investment in our common units
    may be modified by administrative, legislative or judicial
    interpretation at any time. Recently, members of the
    U.S. Congress have considered substantive changes to the
    existing federal income tax laws that affect certain publicly
    traded partnerships, which, if enacted, may or may not be
    applied retroactively. Although we are unable to predict whether
    any of these changes or any other proposals will ultimately be
    enacted, any such changes could negatively impact the value of
    an investment in our common units.
Certain
    federal income tax preferences currently available with respect
    to coal exploration and development may be eliminated in future
    legislation.
Among the changes contained in President Obama's Budget
    Proposal for Fiscal Year 2011, or the Budget Proposal, is the
    elimination of certain key U.S. federal income tax
    preferences relating to coal exploration and development. The
    Budget Proposal would (i) eliminate current deductions and
    the
60-month
amortization for exploration and development costs relating to
    coal and other hard mineral fossil fuels, (ii) repeal the
    percentage depletion allowance with respect to coal properties,
    (iii) repeal capital gains treatment of coal and lignite
    royalties, and (iv) exclude from the definition of domestic
    production gross receipts all gross receipts derived from the
    sale, exchange, or other disposition of coal, other hard mineral
    fossil fuels, or primary products thereof. The passage of any
    legislation as a result of the Budget Proposal or any other
    similar changes in U.S. federal income tax laws could
    eliminate certain tax deductions that are currently available
    with respect to coal exploration and development, and any such
    change could increase the taxable income allocable to our
    unitholders and negatively impact the value of an investment in
    our common units.
Our unitholders will be required to pay taxes on their
    share of our income even if they do not receive any cash
    distributions from us.
Because our unitholders will be treated as partners to whom we
    will allocate taxable income which could be different in amount
    than the cash we distribute, our unitholders will be required to
    pay federal income taxes and, in some cases, state and local
    income taxes on their share of our taxable income even if they
39
Table of Contents
receive no cash distributions from us. Our unitholders may not
    receive cash distributions from us equal to their share of our
    taxable income or even equal to the actual tax liability that
    results from that income.
If the IRS contests the federal income tax positions we
    take, the market for our common units may be adversely impacted
    and the cost of any IRS contest will reduce our cash available
    for distribution to our unitholders.
We have not requested a ruling from the Internal Revenue
    Service, or the IRS, with respect to our treatment as a
    partnership for federal income tax purposes or any other matter
    affecting us. The IRS may adopt positions that differ from the
    conclusions of our counsel expressed in this prospectus or from
    the positions we take. It may be necessary to resort to
    administrative or court proceedings to sustain some or all of
    our counsel's conclusions or the positions we take and such
    positions may not ultimately be sustained. A court may not agree
    with some or all of our counsel's conclusions or the
    positions we take. Any contest with the IRS, and the outcome of
    any IRS contest, may have a materially adverse impact on the
    market for our common units and the price at which they trade.
    In addition, our costs of any contest with the IRS will be borne
    indirectly by our unitholders and our general partner because
    the costs will reduce our cash available for distribution.
Tax gain or loss on the disposition of our common units
    could be more or less than expected.
If you sell your common units, you will recognize a gain or loss
    for federal income tax purposes equal to the difference between
    the amount realized and your tax basis in those common units.
    Because distributions in excess of your allocable share of our
    net taxable income decrease your tax basis in your common units,
    the amount, if any, of such prior excess distributions with
    respect to the common units you sell will, in effect, become
    taxable income to you if you sell such common units at a price
    greater than your tax basis in those common units, even if the
    price you receive is less than your original cost. Furthermore,
    a substantial portion of the amount realized on any sale of your
    common units, whether or not representing gain, may be taxed as
    ordinary income due to potential recapture items, including
    depreciation recapture. In addition, because the amount realized
    includes a unitholder's share of our nonrecourse
    liabilities, if you sell your common units, you may incur a tax
    liability in excess of the amount of cash you receive from the
    sale. Please read "Material Federal Income Tax
    Consequences — Disposition of Common Units —
    Recognition of Gain or Loss" for a further discussion of
    the foregoing.
Tax-exempt entities and
non-U.S.
persons face unique tax issues from owning our common units that
    may result in adverse tax consequences to them.
Investment in common units by tax-exempt entities, such as
    employee benefit plans and individual retirement accounts (known
    as IRAs), and
non-U.S. persons
raises issues unique to them. For example, virtually all of our
    income allocated to organizations that are exempt from federal
    income tax, including IRAs and other retirement plans, will be
    unrelated business taxable income and will be taxable to them.
    Distributions to
non-U.S. persons
will be reduced by withholding taxes at the highest applicable
    effective tax rate, and
non-U.S. persons
will be required to file U.S. federal income tax returns
    and pay tax on their share of our taxable income. If you are a
    tax-exempt entity or a
non-U.S. person,
you should consult a tax advisor before investing in our common
    units.
We will treat each purchaser of common units as having the
    same tax benefits without regard to the actual common units
    purchased. The IRS may challenge this treatment, which could
    adversely affect the value of the common units.
Because we cannot match transferors and transferees of common
    units and because of other reasons, we will adopt depreciation
    and amortization positions that may not conform to all aspects
    of existing Treasury Regulations. A successful IRS challenge to
    those positions could adversely affect the amount of tax
    benefits available to you. Our counsel is unable to opine as to
    the validity of such filing positions. It also could affect the
    timing of these tax benefits or the amount of gain from your
    sale of common units and could have a negative impact on the
    value of our common units or result in audit adjustments to your
    tax returns. Please read "Material Federal Income Tax
    Consequences — Tax Consequences of Unit
    Ownership — Section 754 Election" for a
    further discussion of the effect of the depreciation and
    amortization positions we will adopt.
40
Table of Contents
We prorate our items of income, gain, loss and deduction
    between transferors and transferees of our units each month
    based upon the ownership of our units on the first day of each
    month, instead of on the basis of the date a particular unit is
    transferred. The IRS may challenge this treatment, which could
    change the allocation of items of income, gain, loss and
    deduction among our unitholders.
We will prorate our items of income, gain, loss and deduction
    between transferors and transferees of our units each month
    based upon the ownership of our units on the first day of each
    month, instead of on the basis of the date a particular unit is
    transferred. The use of this proration method may not be
    permitted under existing Treasury Regulations, and, accordingly,
    our counsel is unable to opine as to the validity of this
    method. If the IRS were to challenge this method or new Treasury
    regulations were issued, we may be required to change the
    allocation of items of income, gain, loss and deduction among
    our unitholders. Please read "Material Federal Income Tax
    Consequences — Disposition of Common Units —
    Allocations Between Transferors and Transferees."
A unitholder whose common units are loaned to a
    "short seller" to cover a short sale of common units
    may be considered as having disposed of those common units. If
    so, he would no longer be treated for federal income tax
    purposes as a partner with respect to those common units during
    the period of the loan and may recognize gain or loss from the
    disposition.
Because a unitholder whose common units are loaned to a
    "short seller" to cover a short sale of common units
    may be considered as having disposed of the loaned common units,
    he may no longer be treated for federal income tax purposes as a
    partner with respect to those common units during the period of
    the loan to the short seller and the unitholder may recognize
    gain or loss from such disposition. Moreover, during the period
    of the loan to the short seller, any of our income, gain, loss
    or deduction with respect to those common units may not be
    reportable by the unitholder and any cash distributions received
    by the unitholder as to those common units could be fully
    taxable as ordinary income. Our counsel has not rendered an
    opinion regarding the treatment of a unitholder where common
    units are loaned to a short seller to cover a short sale of
    common units; therefore, our unitholders desiring to assure
    their status as partners and avoid the risk of gain recognition
    from a loan to a short seller are urged to consult a tax advisor
    to discuss whether it is advisable to modify any applicable
    brokerage account agreements to prohibit their brokers from
    loaning their common units.
We will adopt certain valuation methodologies and monthly
    conventions that may result in a shift of income, gain, loss and
    deduction between our general partner and our unitholders. The
    IRS may challenge this treatment, which could adversely affect
    the value of the common units.
When we issue additional units or engage in certain other
    transactions, we will determine the fair market value of our
    assets and allocate any unrealized gain or loss attributable to
    our assets to the capital accounts of our unitholders and our
    general partner. Our methodology may be viewed as understating
    the value of our assets. In that case, there may be a shift of
    income, gain, loss and deduction between certain unitholders and
    our general partner, which may be unfavorable to such
    unitholders. Moreover, under our valuation methods, subsequent
    purchasers of common units may have a greater portion of their
    Internal Revenue Code Section 743(b) adjustment allocated
    to our tangible assets and a lesser portion allocated to our
    intangible assets. The IRS may challenge our valuation methods,
    or our allocation of the Section 743(b) adjustment
    attributable to our tangible and intangible assets, and
    allocations of taxable income, gain, loss and deduction between
    our general partner and certain of our unitholders.
A successful IRS challenge to these methods or allocations could
    adversely affect the amount of taxable income or loss being
    allocated to our unitholders. It also could affect the amount of
    taxable gain from our unitholders' sale of common units and
    could have a negative impact on the value of the common units or
    result in audit adjustments to our unitholders' tax returns
    without the benefit of additional deductions.
The sale or exchange of 50% or more of our capital and
    profits interests during any
twelve-month
period will result in the termination of our partnership for
    federal income tax purposes.
We will be considered to have technically terminated our
    partnership for federal income tax purposes if there is a sale
    or exchange of 50% or more of the total interests in our capital
    and profits within a twelve-month period. For purposes of
    determining whether the 50% threshold has been met, multiple
    sales of the
41
Table of Contents
same interest will be counted only once. Our technical
    termination would, among other things, result in the closing of
    our taxable year for all unitholders, which would result in us
    filing two tax returns (and our unitholders could receive two
    Schedules K-1 if relief was not available, as described below)
    for one fiscal year and could result in a deferral of
    depreciation deductions allowable in computing our taxable
    income. In the case of a unitholder reporting on a taxable year
    other than a fiscal year ending December 31, the closing of
    our taxable year may also result in more than twelve months of
    our taxable income or loss being includable in his taxable
    income for the year of termination. Our termination currently
    would not affect our classification as a partnership for federal
    income tax purposes, but instead we would be treated as a new
    partnership for tax purposes. If treated as a new partnership,
    we must make new tax elections and could be subject to penalties
    if we are unable to determine that a termination occurred. The
    IRS has recently announced a publicly traded partnership
    technical termination relief program whereby, if a publicly
    traded partnership that technically terminated requests publicly
    traded partnership technical termination relief and such relief
    is granted by the IRS, among other things, the partnership will
    only have to provide one
Schedule K-1
to unitholders for the year notwithstanding two partnership tax
    years. Please read "Material Federal Income Tax
    Consequences — Disposition of Common Units —
    Constructive Termination" for a discussion of the
    consequences of our termination for federal income tax purposes.
As a result of investing in our common units, you may
    become subject to state and local taxes and return filing
    requirements in jurisdictions where we operate or own or acquire
    properties.
In addition to federal income taxes, our unitholders will likely
    be subject to other taxes, including state and local taxes,
    unincorporated business taxes and estate, inheritance or
    intangible taxes that are imposed by the various jurisdictions
    in which we conduct business or control property now or in the
    future, even if they do not live in any of those jurisdictions.
    Our unitholders will likely be required to file state and local
    income tax returns and pay state and local income taxes in some
    or all of these various jurisdictions. Further, our unitholders
    may be subject to penalties for failure to comply with those
    requirements. We initially expect to conduct business in
    Indiana, Kentucky, Michigan, Ohio and Pennsylvania. Each of
    these states currently imposes a personal income tax on
    individuals. As we make acquisitions or expand our business, we
    may control assets or conduct business in additional states that
    impose a personal income tax. It is your responsibility to file
    all U.S. federal, state and local tax returns. Our counsel
    has not rendered an opinion on the state or local tax
    consequences of an investment in our common units.
42
Table of Contents
USE OF
    PROCEEDS
We expect to receive net proceeds of approximately
    $      million, after deducting
    underwriting discounts and commissions but before paying
    offering expenses, from the issuance and sale of common units
    offered by this prospectus. We will use the net proceeds from
    this offering to:
•
repay in full the outstanding balance under our existing credit
    facility, which was approximately $93.7 million at
    March 19, 2010;
•
distribute approximately
    $      million to C&T Coal in
    respect of its limited partner interest in us;
•
distribute approximately
    $      million to certain
    participants in our LTIP in respect of their limited partner
    interests in us; and
•
pay offering expenses of approximately
    $      million.
We will retain the remaining net proceeds from this offering to
    replenish approximately
    $      million of our working
    capital.
Immediately following the repayment of the outstanding balance
    under our existing credit facility with the net proceeds of this
    offering, we will enter into a new credit facility and borrow
    approximately $      under that credit
    facility. We will use the proceeds from that borrowing to:
•
distribute approximately
    $      million to AIM Oxford in
    respect of its limited partner interest in us; and
•
pay fees and expenses relating to our new credit facility of
    approximately
    $           million.
A portion of the amounts to be repaid under our existing credit
    facility with the net proceeds of this offering were used to
    finance our acquisition of the surface mining operations of
    Phoenix Coal in September 2009. As of March 19, 2010, we
    had approximately $93.7 million of indebtedness outstanding
    under our existing credit facility. This indebtedness had a
    weighted average interest rate of 6.55% as of
    March 19, 2010. Our existing credit facility matures in
    August 2012.
Our estimates assume an initial public offering price of
    $      per common unit (based upon the
    mid-point of the price range set forth on the cover page of this
    prospectus) and no exercise of the underwriters' option to
    purchase additional common units. An increase or decrease in the
    initial public offering price of $1.00 per common unit would
    cause the net proceeds from the offering, after deducting
    underwriting discounts, to increase or decrease by
    $      million. If the proceeds
    increase due to a higher initial public offering price, we will
    use the additional proceeds for general partnership purposes. If
    the proceeds decrease due to a lower initial public offering
    price, the amount that we have available for general partnership
    purposes will decrease by a corresponding amount.
The proceeds from any exercise of the underwriters' option
    to purchase additional common units will be used to redeem from
    C&T Coal and AIM Oxford that number of common units that
    corresponds to the number of common units issued upon such
    exercise, at a price per common unit equal to the proceeds per
    common unit before expenses but after underwriting discounts.
Affiliates of Citigroup Global Markets Inc. are lenders under
    our existing credit facility and will receive their
    proportionate share of the repayment of the outstanding balance
    under our existing credit facility by us in connection with this
    offering.
43
Table of Contents
CAPITALIZATION
The following table shows:
•
our historical capitalization, as of December 31,
    2009; and
•
our pro forma, as adjusted capitalization as of
    December 31, 2009, giving effect to:
•
our entry into our new credit facility and the repayment of all
    outstanding indebtedness under our existing credit facility;
•
our receipt of net proceeds of
    $      million from the issuance
    and sale
    of           common
    units to the public at an assumed initial offering price of
    $      per unit;
•
the application of the net proceeds from this offering of
    approximately $      million
    (based on the mid-point of the price range set forth on the
    cover page of this prospectus) in the manner described in
    "Use of Proceeds"; and
•
the other transactions described in "Summary —
    The Transactions."
We derived this table from and it should be read in conjunction
    with and is qualified in its entirety by reference to the
    historical and pro forma consolidated financial statements and
    the accompanying notes included elsewhere in this prospectus.
    You should also read this table in conjunction with
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations."
As of December 31, 2009
Pro Forma,
Actual
As Adjusted
(in thousands)
Cash and cash equivalents
$
3,366
Long-term debt (including current maturities):
Existing credit
    facility
(1)
90,729
New credit
    facility
(2)
—
Other debt
4,982
Total long-term debt (including current maturities)
$
95,711
Partners' capital:
Limited partners:
Common unitholders — public
—
Common unitholders — LTIP
787
Common unitholders — sponsors
53,173
Subordinated unitholders — sponsors
—
General partner
1,085
Total Oxford Resource Partners, LP partners' capital
55,045
Noncontrolling interest
2,067
Total partners' capital
57,112
Total capitalization
$
152,823
(1)
As of March 19, 2010, we had
    $93.7 million of borrowings under our existing credit
    facility. This amount does not include $8.8 million of
    letters of credit that were outstanding under our existing
    credit facility as of March 19, 2010.
(2)
Does not include
    $           million
    in outstanding letters of credit that will be issued under our
    new credit facility.
44
Table of Contents
DILUTION
Dilution is the amount by which the offering price will exceed
    the net tangible book value per unit after the offering.
    Assuming an initial public offering price of
    $      per common unit, on a pro forma
    basis as of December 31, 2009, after giving effect to our
    entry into our new credit facility and repayment of all
    outstanding indebtedness under our existing credit facility, the
    issuance and sale
    of           common
    units, the other transactions described in
    "Summary — The Transactions" and the
    application of the net proceeds from this offering in the manner
    described in "Use of Proceeds," our net tangible book
    value was approximately
    $      million, or
    $      per common unit. The pro forma
    tangible net book value excludes
    $      million of deferred
    financing costs. Purchasers of common units in this offering
    will experience substantial and immediate dilution in net
    tangible book value per common unit for financial accounting
    purposes, as illustrated in the following table.
Assumed initial public offering price per common unit
$
Net tangible book value per common unit before the
    offering
(1)
$
Increase in net tangible book value per common unit attributable
    to purchasers in the offering
Less: Pro forma net tangible book value per common unit after
    the
    offering
(2)
Immediate dilution in net tangible book value per common unit to
    purchasers in the
    offering
(3)
$
(1)
Determined by dividing the net tangible book value of the
    contributed assets and liabilities by the number of units
    (          common
    units,          subordinated
    units and the 2.0% general partner interest represented
    by          
    general partner units) held by our general partner and its
    affiliates and the participants under our LTIP.
(2)
Determined by dividing our pro forma net tangible book value,
    after giving effect to the use of the net proceeds from this
    offering, by the total number of units
    (          common
    units,          subordinated
    units and the 2.0% general partner interest represented
    by          general
    partner units) to be outstanding after this offering.
(3)
If the initial public offering price were to increase or
    decrease by $1.00 per common unit, immediate dilution in net
    tangible book value per common unit would increase or decrease
    by $1.00.
The following table sets forth the number of units that we will
    issue and the total consideration contributed to us by our
    general partner and its affiliates and the participants under
    our LTIP in respect of their units and by the purchasers of
    common units in this offering upon consummation of the
    transactions contemplated by this prospectus.
Units Acquired
Total Consideration
Number
Percent
Amount
Percent
($ in millions)
General Partner and its
    affiliates
(1)
$
%
$
%
New Investors
%
%
Total
$
100.0
%
$
100.0
%
(1)
Upon the consummation of the transactions contemplated by this
    prospectus, our general partner and its affiliates, and the
    participants under our LTIP, will
    own          
    common
    units,          subordinated
    units and a 2.0% general partner interest represented
    by          general
    partner units.
45
Table of Contents
CASH
    DISTRIBUTION POLICY AND RESTRICTIONS ON DISTRIBUTIONS
You should read the following discussion of our cash
    distribution policy in conjunction with the specific assumptions
    included in this section. In addition, you should read
    "Forward-Looking Statements" and "Risk
    Factors" for information regarding statements that do not
    relate strictly to historical or current facts and regarding
    certain risks inherent in our business.
For additional information regarding our historical results
    of operations, you should refer to our historical audited
    consolidated financial statements as of and for the years ended
    December 31, 2007, 2008 and 2009 included elsewhere in this
    prospectus.
General
Rationale
    for Our Cash Distribution Policy
Our cash distribution policy is consistent with the terms of our
    partnership agreement, which requires that we distribute all of
    our available cash quarterly. Under our partnership agreement,
    available cash is generally defined to mean, for each quarter,
    cash generated from our business in excess of the amount of cash
    reserves established by our general partner to provide for the
    conduct of our business, to comply with applicable law, any of
    our debt instruments or other agreements or to provide for
    future distributions to our unitholders for any one or more of
    the next four quarters. Our cash distribution policy reflects a
    basic judgment that our unitholders will be better served by
    distributing our available cash rather than retaining it,
    because, among other reasons, we believe we will generally
    finance any expansion capital expenditures from external
    financing sources. Because we are not subject to an entity-level
    federal income tax, we expect to have more cash to distribute
    than would be the case if we were subject to federal income tax.
Limitations
    on Cash Distributions and Our Ability to Change Our Cash
    Distribution Policy
There is no guarantee that we will distribute quarterly cash
    distributions to our unitholders. Our cash distribution policy
    is subject to certain restrictions and may be changed at any
    time. The reasons for such uncertainties in our stated cash
    distribution policy include the following factors:
•
Our cash distribution policy will be subject to restrictions on
    cash distributions under our new credit facility. Specifically,
    we expect our new credit facility to contain financial tests and
    covenants that we must satisfy before quarterly cash
    distributions can be paid. These financial tests and covenants
    are described in "Management's Discussion and Analysis
    of Financial Condition and Results of Operations —
    Liquidity and Capital Resources — Credit
    Facility." Should we be unable to satisfy these
    restrictions included in our new credit facility or if we are
    otherwise in default under our new credit facility, we would be
    prohibited from making cash distributions notwithstanding our
    cash distribution policy.
•
Our general partner will have the authority to establish cash
    reserves for the prudent conduct of our business and for future
    cash distributions to our unitholders, and the establishment of
    or increase in those reserves could result in a reduction in
    cash distributions from levels we currently anticipate pursuant
    to our stated cash distribution policy.
•
While our partnership agreement requires us to distribute all of
    our available cash, our partnership agreement, including the
    provisions requiring us to make cash distributions contained
    therein, may be amended. Our partnership agreement generally may
    not be amended during the subordination period without the
    approval of our public common unitholders other than in certain
    limited circumstances where no unitholder approval is required.
    However, after the subordination period has ended our
    partnership agreement may be amended with the consent of our
    general partner and the approval of a majority of the
    outstanding common units (including common units held by
    C&T Coal and AIM Oxford). At the closing of this offering,
    C&T Coal and AIM Oxford will own our general partner,
    approximately     % of our outstanding
    common units and all of our outstanding subordinated units.
    Please read "The Partnership Agreement —
    Amendment of Our Partnership Agreement."
46
Table of Contents
•
Even if our cash distribution policy is not modified or revoked,
    the amount of distributions we pay under our cash distribution
    policy and the decision to make any distribution is determined
    by our general partner, taking into consideration the terms of
    our partnership agreement.
•
Under
Section 17-607
of the Delaware Act, we may not make a distribution if the
    distribution would cause our liabilities to exceed the fair
    value of our assets.
•
We may lack sufficient cash to pay distributions to our
    unitholders due to reduced revenues from sales of our products
    and services or increases in our operating costs, SG&A
    expenses, principal and interest payments on our outstanding
    debt and working capital requirements.
•
If we make distributions out of capital surplus, as opposed to
    operating surplus, such distributions will constitute a return
    of capital and will result in a reduction in the minimum
    quarterly distribution and the target distribution levels.
    Please read "How We Make Cash Distributions —
    Distributions from Capital Surplus." We do not anticipate
    that we will make any distributions from capital surplus.
•
Our ability to make distributions to our unitholders depends on
    the performance of our subsidiaries and their ability to
    distribute cash to us, including cash distributions from
    Harrison Resources, which requires the approval of the
    noncontrolling interest holder. The ability of our subsidiaries
    to make distributions to us may be restricted by, among other
    things, the provisions of existing and future indebtedness,
    applicable state partnership and limited liability company laws
    and other laws and regulations.
While we believe, based on our financial forecast and related
    assumptions, that we will have sufficient cash to enable us to
    pay the full minimum quarterly distribution on all of our common
    units and subordinated units for the twelve months ending
    June 30, 2011, our cash available for distribution
    generated during the year ended December 31, 2009 would
    have been sufficient to allow us to
    pay     %
    and     % of the minimum quarterly
    distribution ($      per unit per
    quarter, or $      on an annualized
    basis) on our common units and subordinated units, respectively.
    This represents     % of the total
    distributions payable to all of our unitholders and our general
    partner.
Our
    Ability to Grow is Dependent on Our Ability to Access External
    Expansion Capital
We will distribute all of our available cash to our unitholders
    on a quarterly basis. As a result, we expect that we will rely
    primarily upon external financing sources, including commercial
    bank borrowings and the issuance of debt and equity securities,
    to fund any future expansion capital expenditures. To the extent
    we are unable to finance growth externally, our cash
    distribution policy will significantly impair our ability to
    grow our asset base. In addition, because we will distribute all
    of our available cash, our growth may not be as fast as
    businesses that reinvest all of their available cash to expand
    ongoing operations. To the extent we issue additional units, the
    payment of distributions on those additional units may increase
    the risk that we will be unable to maintain or increase our per
    unit distribution level, which in turn may impact the available
    cash that we have to distribute on each unit. There are no
    limitations in our partnership agreement, and we do not
    anticipate there being any limitations in our new credit
    facility, on our ability to issue additional units, including
    units ranking senior to the common units. The incurrence of
    additional commercial borrowings or other debt to finance our
    growth strategy would result in increased interest expense,
    which in turn may impact the available cash that we have to
    distribute to our unitholders.
Minimum
    Quarterly Distribution Rate
Upon the consummation of this offering, the board of directors
    of our general partner intends to establish a minimum quarterly
    distribution of $      per unit for
    each complete quarter, or $      per
    unit on an annualized basis, to be paid within 45 days
    after the end of each quarter. We will adjust our first
    distribution for the period from the closing of this offering
    through          ,
    2010 based on the actual length of the period. Our ability to
    make cash distributions at the established minimum quarterly
    distribution rate pursuant to our cash distribution policy will
    be subject to the factors described above under
    "— General — Limitations on Cash
    Distributions and Our Ability to Change Our Cash Distribution
    Policy." The amount of available cash
47
Table of Contents
needed to pay the minimum quarterly distribution on all of the
    common units, subordinated units and general partner units to be
    outstanding immediately after this offering for one quarter and
    for four quarters is summarized in the table below:
Number of Units
One Quarter
Four Quarters
Common units
Subordinated units
General partner units
Total
As of the date of this offering, our general partner will be
    entitled to 2.0% of all distributions that we make prior to our
    liquidation. Our general partner's initial 2.0% interest in
    these distributions may be reduced if we issue additional units
    in the future and our general partner does not contribute a
    proportionate amount of capital to us to maintain its initial
    2.0% general partner interest. Our general partner will also
    hold the incentive distribution rights, which entitle the holder
    to increasing percentages, up to a maximum of 48%, of the cash
    we distribute in excess of $      per
    unit per quarter.
During the subordination period, before we make any quarterly
    distributions to our subordinated unitholders, our common
    unitholders are entitled to receive payment of the full minimum
    quarterly distribution plus any arrearages in distributions of
    the minimum quarterly distribution from prior quarters. Please
    read "How We Make Cash Distributions —
    Subordination Period." We cannot guarantee, however, that
    we will pay the minimum quarterly distribution on the common
    units in any quarter.
We do not have a legal obligation to pay distributions at our
    minimum quarterly distribution rate or at any other rate except
    as provided in our partnership agreement. Our cash distribution
    policy is consistent with the terms of our partnership
    agreement, which requires that we distribute all of our
    available cash quarterly. Under our partnership agreement,
    available cash is generally defined to mean, for each quarter,
    cash generated from our business in excess of the amount of cash
    reserves established by our general partner to provide for the
    conduct of our business, to comply with applicable law, any of
    our debt instruments or other agreements or to provide for
    future distributions to our unitholders for any one or more of
    the next four quarters.
Although holders of our common units may pursue judicial action
    to enforce provisions of our partnership agreement, including
    those related to requirements to make cash distributions as
    described above, our partnership agreement provides that any
    determination made by our general partner in its capacity as our
    general partner must be made in good faith and that any such
    determination will not be subject to any other standard imposed
    by the Delaware Act or any other law, rule or regulation or at
    equity. Our partnership agreement provides that, in order for a
    determination by our general partner to be made in "good
    faith," our general partner must believe that the
    determination is in our best interest. Please read
    "Conflicts of Interest and Fiduciary Duties."
Our cash distribution policy, as expressed in our partnership
    agreement, may not be modified or repealed without amending our
    partnership agreement; however, the actual amount of our cash
    distributions for any quarter is subject to fluctuations based
    on the amount of cash we generate from our business and the
    amount of reserves our general partner establishes in accordance
    with our partnership agreement as described above.
We will pay our distributions on or about the 15th day of
    each of February, May, August and November to holders of record
    on or about the 1st day of each such month. If the
    distribution date does not fall on a business day, we will make
    the distribution on the first business day immediately preceding
    the indicated distribution date. We will adjust the quarterly
    distribution for the period from the closing of this offering
    through          ,
    2010 based on the actual length of the period.
Historical
    and Forecasted Results of Operations and Cash Available for
    Distribution
In this section, we present in detail the basis for our belief
    that we will be able to pay the minimum quarterly distribution
    on all of our common units and subordinated units and make the
    related distribution on our general partner's 2.0% general
    partner interest for the twelve months ending June 30,
    2011. We present a
48
Table of Contents
table below, consisting of historical and forecasted results of
    operations and cash available for distribution for the year
    ended December 31, 2009 and the twelve months ending
    June 30, 2011, respectively. In the table, we show our
    historical results of operations and the amount of cash
    available for distribution we would have had for the year ended
    December 31, 2009 based on our historical consolidated
    statement of operations included elsewhere in this prospectus
    and our forecasted results of operations and the forecasted
    amount of cash available for distribution for the twelve months
    ending June 30, 2011 and the significant assumptions upon
    which this forecast is based.
Our historical consolidated financial statements and the notes
    to those statements included elsewhere in this prospectus should
    be read together with "Selected Historical and Pro Forma
    Consolidated Financial and Operating Data" and
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations" included elsewhere in
    this prospectus.
Historical cash available for distribution generated during the
    year ended December 31, 2009 would have been approximately
    $      million. This amount would
    have been sufficient to pay     %
    and     % of the minimum quarterly
    distribution ($      per quarter, or
    $      on an annualized basis) on our
    common units and subordinated units, respectively. This
    represents     % of the total
    distributions payable to all of our unitholders and our general
    partner.
The following table also sets forth our calculation of
    forecasted cash available for distribution to our unitholders
    and our general partner for the twelve months ending
    June 30, 2011. We forecast that our cash available for
    distribution generated during the twelve months ending
    June 30, 2011 will be approximately
    $      million. This amount would
    be sufficient to pay the full minimum quarterly distribution of
    $      per unit on all of our common
    units and subordinated units and the related distribution on our
    general partner's 2.0% general partner interest for each
    quarter in the twelve months ending June 30, 2011.
We are providing the financial forecast to supplement our
    historical consolidated financial statements in support of our
    belief that we will have sufficient cash available to allow us
    to pay cash distributions on all of our outstanding common units
    and subordinated units and the related distributions on our
    general partner's 2.0% general partner interest for the
    twelve months ending June 30, 2011 at the minimum quarterly
    distribution rate. Please read "— Significant
    Forecast Assumptions" for further information as to the
    assumptions we have made for the financial forecast. Please read
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations — Critical
    Accounting Policies and Estimates" for information as to
    the accounting policies we have followed for the financial
    forecast.
Our forecast reflects our judgment as of the date of this
    prospectus of conditions we expect to exist and the course of
    action we expect to take during the twelve months ending
    June 30, 2011. We believe that our actual results of
    operations will approximate those reflected in our forecast, but
    we can give no assurance that our forecasted results will be
    achieved. If our estimates are not achieved, we may not be able
    to pay quarterly distributions on our common units and
    subordinated units at the minimum quarterly distribution rate of
    $      per unit (or
    $      per unit on an annualized basis)
    or any other rate. The assumptions and estimates underlying the
    forecast are inherently uncertain and, though we consider them
    reasonable as of the date of this prospectus, are subject to a
    wide variety of significant business, economic and competitive
    risks and uncertainties that could cause actual results to
    differ materially from those contained in the forecast,
    including, among others, risks and uncertainties contained in
    "Risk Factors." Accordingly, there can be no assurance
    that the forecast is indicative of our future performance or
    that actual results will not differ materially from those
    presented in the forecast. Inclusion of the forecast in this
    prospectus should not be regarded as a representation by any
    person that the results contained in the forecast will be
    achieved.
We do not, as a matter of course, make public forecasts as to
    future sales, earnings or other results. However, we have
    prepared the forecast set forth below to present the estimated
    cash available for distribution to our unitholders and general
    partner during the forecasted period. The accompanying forecast
    was not prepared with a view toward complying with the
    guidelines established by the American Institute of Certified
    Public Accountants with respect to prospective financial
    information, but, in our view, was prepared on a reasonable
    basis, reflects the best currently available estimates and
    judgments, and presents, to the best of management's
    knowledge and belief, the expected course of
49
Table of Contents
action and our expected future financial performance.
    However, this information is not fact and should not be relied
    upon as being necessarily indicative of future results, and
    readers of this prospectus are cautioned not to place undue
    reliance on the forecast.
Neither our independent auditors, nor any other independent
    accountants, have compiled, examined or performed any procedures
    with respect to the forecast contained herein, nor have they
    expressed any opinion or any other form of assurance on such
    information or its achievability, and assume no responsibility
    for, and disclaim any association with, the forecast. We do not
    intend to update or otherwise revise the forecast to reflect
    circumstances existing since its preparation or to reflect the
    occurrence of unanticipated events, even if any or all of the
    underlying assumptions are shown to be in error. Furthermore, we
    do not intend to update or revise the forecast to reflect
    changes in general economic or industry conditions.
50
Table of Contents
Oxford
    Resource Partners, LP
Cash Available for Distribution
Historical
Forecasted
(1)
Year Ended
Twelve Months
December 31, 2009
Ending June 30, 2011
(in thousands, except per unit and
per ton amounts)
Operating data:
Coal produced in tons
5,846
8,079
Coal purchased in tons
530
730
Coal available for sale in tons
6,376
8,809
Coal sold in tons
6,311
8,789
Increase in coal inventory in tons
65
20
Coal sales in tons —
    sold/committed
(2)
6,311
8,121
Coal sales in tons — uncommitted
n/a
668
Average sales price per ton —
    sold/committed
(2)
$
40.27
$
37.87
Average sales price per ton — uncommitted
n/a
$
40.32
Selected financial data:
Coal sales revenue —
    sold/committed
(2)
$
254,171
$
307,638
Coal sales revenue — uncommitted
n/a
26,934
Transportation revenue
32,490
44,894
Royalty and non-coal
    revenue
(3)
7,183
9,478
Total revenues
293,844
388,944
Costs and expenses:
Cost of coal sales (excluding DD&A, shown separately)
170,698
226,382
Cost of purchased coal
19,487
23,379
Cost of transportation
32,490
44,894
Depreciation, depletion and amortization
25,902
37,365
Selling, general and administrative
    expenses
(4)
13,242
14,703
Total costs and expenses
261,819
346,723
Income from operations
32,025
42,221
Interest income
35
15
Interest expense
(6,484
)
(7,093
)
Gain from purchase of
    business
(5)
3,823
—
Net income
29,399
35,143
Less: income attributable to noncontrolling interest
(5,895
)
(7,531
)
Net income attributable to Oxford Resource Partners, LP
    unitholders
$
23,504
$
27,612
Plus:
Depreciation, depletion and amortization
25,902
37,365
Interest expense
6,484
7,093
Non-cash equity compensation expense
472
433
Less:
Interest Income
35
15
Gain from purchase of
    business
(5)
3,823
—
Amortization of below-market coal sales contracts
1,705
2,132
Adjusted
    EBITDA
(6)
$
50,799
$
70,356
Less:
Cash interest expense, net of interest income
5,970
6,221
Maintenance capital
    expenditures
(7)
27,461
32,269
Cash available for distribution
$
17,368
$
31,866
Implied cash distributions at the minimum quarterly
    distribution rate:
Annualized minimum quarterly distribution per unit
Distributions to public common unitholders
Distributions to participants in LTIP
Distributions to C&T Coal and AIM Oxford — common
    units
Distributions to C&T Coal and AIM Oxford —
    subordinated units
Distributions to general partner
Total distributions to unitholders and general
    partner
(8)
Excess (shortfall)
(1)
The forecasted column is based on
    the assumptions set forth in "— Significant
    Forecast Assumptions" below.
51
Table of Contents
(2)
Represents coal sold for 2009 on a
    historical basis and coal committed for sale for the twelve
    months ending June 30, 2011. The forecast period amount
    includes 0.2 million tons that are subject to a price
    re-opener under a long-term coal sales contract.
(3)
Consists of royalty payments we
    receive on our underground coal reserves as well as limestone
    sales, barge loading fees and other revenue.
(4)
Historical SG&A expenses for
    the year ended December 31, 2009 include one-time expenses
    of $1.6 million associated with the Phoenix Coal acquisition and
    $1.0 million of legal fees incurred in renegotiating our
    existing credit facility, but do not include incremental
    SG&A expenses of approximately $3.0 million that we
    expect to incur as a result of being a publicly traded
    partnership. However, forecasted SG&A expenses for the
    twelve months ended June 30, 2011 include such incremental
    SG&A expenses.
(5)
On September 30, 2009, we
    acquired all of the active surfacing mining operations of
    Phoenix Coal. The purchase price of this acquisition was less
    than the fair value of the net assets and liabilities we
    acquired. We recorded this difference as a gain of
    $3.8 million for the year ending December 31, 2009.
(6)
This table presents a
    reconciliation of Adjusted EBITDA to net income (loss)
    attributable to our unitholders for each of the periods
    indicated. Adjusted EBITDA is a non-GAAP financial measure,
    which we use in our business as it is an important supplemental
    measure of our performance. Adjusted EBITDA represents net
    income (loss) attributable to our unitholders before interest,
    taxes, depreciation, depletion and amortization, gain from
    purchase of a business, amortization of below-market coal sales
    contracts and non-cash equity compensation expense. This measure
    is not calculated or presented in accordance with GAAP. We
    explain this measure below and reconcile it to its most directly
    comparable financial measures calculated and presented in
    accordance with GAAP.
Adjusted EBITDA is used as a
    supplemental financial measure by management and by external
    users of our financial statements, such as investors and
    lenders, to assess:
•
our financial performance without regard to financing methods,
    capital structure or income taxes;
•
our ability to generate cash sufficient to pay interest on our
    indebtedness and to make distributions to our unitholders and
    our general partner;
•
our compliance with certain financial covenants applicable to
    our credit facility; and
•
our ability to fund capital expenditure projects from operating
    cash flows.
Adjusted EBITDA should not be
    considered an alternative to net income (loss) attributable to
    our unitholders, income from operations, cash flows from
    operating activities or any other measure of performance
    presented in accordance with GAAP. Adjusted EBITDA excludes
    some, but not all, items that affect net income (loss)
    attributable to our unitholders, income from operations and cash
    flows, and these measures may vary among other companies.
    Therefore, Adjusted EBITDA as presented below may not be
    comparable to similarly titled measures of other companies.
(7)
Historically we have not made a
    distinction between maintenance capital expenditures and other
    capital expenditures. For purposes of this presentation,
    however, we have evaluated our 2009 capital expenditures to
    determine which of them would have been classified as
    maintenance capital expenditures in accordance with our
    partnership agreement at the time they were made. Based on this
    evaluation, we estimate that our maintenance capital
    expenditures for the year ended December 31, 2009 would
    have been $27.5 million. The amount of our actual
    maintenance capital expenditures may differ substantially from
    period to period, which could cause similar fluctuations in the
    amounts of operating surplus, adjusted operating surplus and
    cash available for distribution to our unitholders, if we
    subtracted actual maintenance capital expenditures from
    operating surplus. To eliminate these fluctuations, our
    partnership agreement will require that an estimate of the
    maintenance capital expenditures necessary to maintain our asset
    base be subtracted from operating surplus each quarter as
    opposed to amounts actually spent on maintenance capital
    expenditures. The $32.3 million of maintenance capital
    expenditures for the forecasted twelve months ending
    June 30, 2011 represents estimated maintenance capital
    expenditures as defined in our partnership agreement. The amount
    of estimated maintenance capital expenditures deducted from
    operating surplus is subject to review and change by the board
    of directors of our general partner at least once a year,
    provided that any change must be approved by the Conflicts
    Committee. We expect our actual maintenance capital expenditures
    during the forecast period to be consistent with our estimated
    maintenance capital expenditures for that period. We have not
    included any expansion capital expenditures in the forecast
    period. To the extent we incur such expenditures during the
    forecast period, we expect to fund those with borrowings under
    our new credit facility, issuance of debt and equity securities
    or other external sources of financings. Please read "How
    We Make Cash Distributions — Operating Surplus and
    Capital Surplus — Definition of Operating
    Surplus" for a further discussion of the effects of our use
    of estimated maintenance capital expenditures.
(8)
Represents the amount that would be
    required to pay distributions for four quarters at our minimum
    quarterly distribution rate of $     
    per unit on all of the common and subordinated units that will
    be outstanding immediately following this offering and the
    related distributions on our general partner's 2.0% general
    partner interest.
52
Table of Contents
Significant
    Forecast Assumptions
The forecast has been prepared by and is the responsibility of
    management. Our forecast reflects our judgment as of the date of
    this prospectus of conditions we expect to exist and the course
    of action we expect to take during the twelve months ending
    June 30, 2011. While the assumptions disclosed in this
    prospectus are not all-inclusive, the assumptions listed below
    are those that we believe are significant to our forecasted
    results of operations. We believe we have a reasonable objective
    basis for these assumptions. We believe our actual results of
    operations will approximate those reflected in our forecast, but
    we can give no assurance that our forecasted results will be
    achieved. There will likely be differences between our forecast
    and the actual results and those differences could be material.
    If the forecast is not achieved, we may not be able to pay cash
    distributions on our common units at the minimum quarterly
    distribution rate or at all.
Production and Revenues.
We forecast that our
    total revenues for the twelve months ending June 30, 2011
    will be approximately $389.0 million, as compared to
    approximately $293.8 million for 2009. Our forecast of
    total revenues is based primarily on the following assumptions:
•
We estimate that we will produce approximately 8.1 million
    tons of coal during the twelve months ending June 30, 2011,
    as compared to approximately 5.8 million tons we produced
    in 2009. This estimated volume increase is primarily due to
    additional coal production from our Muhlenberg County mining
    complex that we acquired in the Phoenix Coal acquisition, as a
    result of a full year of production from these properties being
    reflected in the forecast period as well as our deployment of
    larger equipment and implementation of more efficient mining
    practices at that complex. We expect to produce an aggregate of
    approximately 2.1 million tons of coal from our Muhlenberg
    County mining complex in the forecast period compared to
    0.4 million tons of coal during the fourth quarter of 2009
    (or 1.6 million tons on an annualized basis). We expect
    that our coal production during the forecast period from our
    other mining complexes will increase slightly compared to 2009.
•
We estimate that we will sell approximately 8.8 million
    tons of coal during the twelve months ending June 30, 2011,
    as compared to approximately 6.3 million tons we sold in
    2009. We have committed to sell approximately 8.1 million
    tons, of which 7.9 million tons are priced and
    0.2 million tons are subject to price re-openers under a
    long-term coal sales contract. As described below, we expect to
    purchase approximately 0.7 million tons to balance our
    estimated sales volumes. Our estimates assume that we will be
    successful in repricing these 0.2 million tons at slightly
    higher prices. Our estimates also assume that our customers with
    options to take delivery of additional tons during the forecast
    period will not exercise their options.
•
We estimate that the average sales price per ton for committed
    tons will be $37.87 for the twelve months ending June 30,
    2011, as compared to $40.27 for 2009. This estimate takes into
    account prices in our long-term contracts, including our
    estimate of the amount of applicable cost pass through or
    inflation adjustment provisions, and gives effect to the full
    year impact of the lower priced coal sales contracts that we
    assumed in connection with the Phoenix Coal acquisition, and the
    expiration of a short-term supplemental price increase that took
    effect in 2009 in connection with the amendment of a long-term
    coal sales contract.
•
We estimate that the average sales price per ton for uncommitted
    tons will be $40.32 for the twelve months ending June 30,
    2011. Our estimated average sales price for these tons assumes
    that we will be successful in selling those uncommitted tons at
    prices that reflect management's current estimates of
    market conditions and pricing trends.
•
We estimate that our royalty and non-coal revenue, which
    consists of royalty payments received on our underground coal
    reserves as well as limestone sales, barge loading fees and
    other sources of revenue, will be $9.5 million for the
    twelve months ending June 30, 2011, as compared to
    $7.2 million for 2009. This increase is primarily due to
    increased barge-loading fees under a new contract at our Island
    river terminal in western Kentucky. We have assumed that the
    overriding royalty payments on our underground coal reserves and
    all other non-coal revenues during the forecast period will
    slightly increase compared to the amounts we received in 2009.
53
Table of Contents
Purchased Coal.
We estimate that we will
    purchase approximately 0.7 million tons of coal from third
    parties for the twelve months ending June 30, 2011, as
    compared to approximately 0.5 million tons we purchased in
    2009. This increase is primarily due to the full year impact of
    a long-term coal purchase contract that we assumed in connection
    with the Phoenix Coal acquisition under which we purchase
    approximately 0.4 million tons annually.
Cost of Coal Sales.
We estimate that our cost
    of coal sales will be $226.4 million for the twelve months
    ending June 30, 2011, as compared to $170.7 million
    for 2009. The increase in cost of coal sales for the forecast
    period as compared to 2009 is primarily attributable to
    increased coal production, partially offset by a decrease in our
    cost of coal sales per ton. We estimate that our cost of coal
    sales per ton for the twelve months ending June 30, 2011
    will be $28.02, as compared to $29.20 for 2009. This decrease is
    attributable to a projected decrease in diesel fuel and
    explosives costs on a per ton basis, partially offset by higher
    non-commodity-related operating costs on a per ton basis due to
    the Phoenix Coal acquisition.
Cost of Purchased Coal.
We forecast our cost
    of purchased coal will be $23.4 million for the twelve
    months ending June 30, 2011, as compared to
    $19.5 million for 2009. This increase is primarily
    attributable to more tons of coal being purchased in the
    forecast period as compared to 2009, partially offset by a
    decrease in the cost per ton of purchased coal. We estimate that
    the cost per ton of purchased coal will be $32.02 for the twelve
    months ending June 30, 2011, as compared to $36.79 for
    2009. During the first quarter of 2009, we bought a higher
    percentage of our purchased coal on the spot market in order to
    meet our coal sales obligations. Since that time, due to a
    long-term coal purchase contract under which we purchase
    approximately 0.4 million tons annually, our need for spot
    market purchases has declined.
Depreciation, Depletion and Amortization.
We
    forecast depreciation, depletion and amortization expense to be
    approximately $37.4 million for the twelve months ending
    June 30, 2011, as compared to approximately
    $25.9 million for 2009. This increase is primarily due to
    the full year impact of the Phoenix Coal acquisition.
Selling, General and Administrative
    Expenses.
We forecast SG&A expenses to be
    approximately $14.7 million for the twelve months ending
    June 30, 2011, as compared to approximately
    $13.2 million for 2009. This increase is primarily
    attributable to $3.0 million in incremental SG&A
    expenses that we expect to incur as a result of being a publicly
    traded partnership, partially offset by a decrease in
    acquisition costs and legal fees, which were higher in 2009 due
    to the one-time costs of the Phoenix Coal acquisition and fees
    incurred in renegotiating our existing credit facility.
Harrison Resources Distributions.
We estimate
    that the aggregate cash distributions we will receive from
    Harrison Resources for the twelve months ending June 30,
    2011 will be $7.5 million as compared to $6.3 million
    in 2009. In the forecast period, we have assumed that the cash
    distributions we will receive from Harrison Resources will
    constitute substantially all of our Adjusted EBITDA attributable
    to Harrison Resources. This assumption is consistent with the
    distributions we received from, and the portion of our Adjusted
    EBITDA attributable to, Harrison Resources in 2009.
Financing.
We forecast interest expense of
    approximately $7.1 million for the twelve months ending
    June 30, 2011, as compared to approximately
    $6.5 million for 2009. Our interest expense for the twelve
    months ending June 30, 2011 is based on the following
    assumptions:
•
we will repay in full the outstanding borrowings of
    $      under our existing credit
    facility with a portion of the proceeds from the offering;
•
we will borrow approximately
    $      million under our new
    credit facility;
•
for calculating our interest expense, we have assumed a weighted
    average interest rate over the forecast period of 5.0% under our
    new credit facility, which is lower than the weighted average
    interest rate for 2009 under our existing credit
    facility; and
•
we will maintain a low cash balance.
54
Table of Contents
Capital Expenditures.
We forecast capital
    expenditures for the twelve months ending June 30, 2011
    based on the following assumptions:
•
Our estimated maintenance capital expenditures for the forecast
    period are $32.3 million for the twelve months ending
    June 30, 2011, as compared to approximately
    $27.5 million of actual maintenance capital expenditures
    for 2009. This increase is primarily due to a larger asset base,
    including replacement of reserves, following the Phoenix Coal
    acquisition. We expect to fund maintenance capital expenditures
    from cash generated by our operations and from borrowings under
    our new credit facility.
•
We have not included any expansion capital expenditures in our
    forecast for the twelve months ending June 30, 2011.
    Expansion capital expenditures are cash expenditures incurred
    for acquisitions or capital improvements, which are (i) any
    addition or improvement to our capital assets, (ii) the
    acquisition of existing, or the construction of new, capital
    assets (including coal mines and related assets), or
    (iii) capital contributions to an entity in which we own an
    equity interest for our pro rata share of the cost of
    acquisitions of existing, or the construction of new, capital
    assets by such entity, in each case if such addition,
    improvement, acquisition or construction is made to increase our
    long-term operating capacity, asset base or operating income.
    Examples of expansion capital expenditures include the
    acquisition of reserves, equipment or a new mine or the
    expansion of an existing mine, to the extent such expenditures
    are expected to expand our long-term operating capacity, asset
    base or operating income. We had approximately
    $23.7 million of actual capital expenditures for 2009 that
    we would have classified as expansion capital expenditures if we
    had distinguished between expansion capital expenditures and
    other capital expenditures during that period. Of the
    $23.7 million, approximately $18.3 million was
    attributable to the Phoenix Coal acquisition and approximately
    $5.4 million was attributable to the purchase of other
    additional coal reserves.
Regulatory, Industry and Economic Factors.
We
    forecast for the twelve months ending June 30, 2011 based
    on the following assumptions related to regulatory, industry and
    economic factors:
•
no material nonperformance or credit-related defaults by
    suppliers, customers or vendors, or shortage of skilled labor;
•
all supplies and commodities necessary for production and
    sufficient transportation will be readily available;
•
no new federal, state or local regulation of the portions of the
    mining industry in which we operate or any interpretation of
    existing regulation that in either case will be materially
    adverse to our business;
•
no material unforeseen geologic conditions or equipment problems
    at our mining locations;
•
no material accidents, weather-related incidents, unscheduled
    downtime or similar unanticipated events;
•
no major adverse change in the coal markets in which we operate
    resulting from supply or production disruptions, reduced demand
    for our coal or significant changes in the market prices of
    coal; and
•
no material changes in market, regulatory or overall economic
    conditions.
55
Table of Contents
HOW WE
    MAKE CASH DISTRIBUTIONS
Distributions
    of Available Cash
General
Our partnership agreement requires that, within 45 days
    after the end of each quarter, we distribute our available cash
    to unitholders of record on the applicable record date. We will
    adjust the minimum quarterly distribution for the period from
    the closing of the offering
    through          ,
    2010 based on the actual length of the period.
Definition
    of Available Cash
Available cash generally means, for any quarter, all cash on
    hand at the end of the quarter:
•
less the amount of cash reserves established by our general
    partner at the date of determination of available cash for the
    quarter to:
•
provide for the proper conduct of our business (including
    reserves for our future capital expenditures and anticipated
    future credit needs subsequent to that quarter);
•
comply with applicable law, any of our debt instruments or other
    agreements; and
•
provide funds for distributions to our unitholders and to our
    general partner for any one or more of the next four quarters;
•
plus, if our general partner so determines, all or any portion
    of the cash on hand on the date of determination of available
    cash for the quarter.
Intent
    to Distribute the Minimum Quarterly Distribution
We intend to make a minimum quarterly distribution to the
    holders of our common units and subordinated units of
    $      per unit, or
    $      on an annualized basis, to the
    extent we have sufficient cash from our operations after the
    establishment of cash reserves and the payment of costs and
    expenses, including reimbursements of expenses to our general
    partner. However, there is no guarantee that we will pay the
    minimum quarterly distribution on our units in any quarter. Even
    if our cash distribution policy is not modified or revoked, the
    amount of distributions paid under our policy and the decision
    to make any distribution is determined by our general partner,
    taking into consideration the terms of our partnership
    agreement. Please read "Management's Discussion and
    Analysis of Financial Condition and Results of
    Operations — Liquidity and Capital
    Resources — Credit Facility" for a discussion of
    the restrictions to be included in our new credit facility that
    may restrict Oxford Mining Company's ability to make
    distributions to us.
General
    Partner Interest and Incentive Distribution Rights
As of the date of this offering, our general partner is entitled
    to 2.0% of all quarterly distributions that we make prior to our
    liquidation. This general partner interest will be represented
    by          
    general partner units upon the completion of this offering. Our
    general partner has the right, but not the obligation, to
    contribute a proportionate amount of capital to us to maintain
    its current general partner interest. Our general partner's
    initial 2.0% interest in our distributions may be reduced if we
    issue additional limited partner units in the future and our
    general partner does not contribute a proportionate amount of
    capital to us to maintain its 2.0% general partner interest.
Our general partner also currently holds incentive distribution
    rights that entitle it to receive increasing percentages, up to
    a maximum of 50.0%, of the cash we distribute from operating
    surplus (as defined below) in excess of
    $      per unit per quarter. The
    maximum distribution of 50.0% includes distributions paid to our
    general partner on its 2.0% general partner interest and assumes
    that our general partner maintains its general partner interest
    at 2.0%. The maximum distribution of 50.0% does not include any
    distributions that our
56
Table of Contents
general partner may receive on common units or subordinated
    units that it owns. Please read "— General
    Partner Interest and Incentive Distribution Rights" for
    additional information.
Operating
    Surplus and Capital Surplus
Overview
All cash distributed to unitholders will be characterized as
    either "operating surplus" or "capital
    surplus." We treat distributions of available cash from
    operating surplus differently than distributions of available
    cash from capital surplus.
Definition
    of Operating Surplus
We define operating surplus as:
•
$      million (as described
    below); plus
•
all of our cash receipts after the closing of this offering,
    excluding cash from interim capital transactions (as defined
    below); less
•
all of our operating expenditures (as defined below) after the
    closing of this offering; less
•
the amount of cash reserves established by our general partner
    prior to the date of determination of available cash to provide
    funds for future operating expenditures.
As described above, operating surplus does not reflect actual
    cash on hand that is available for distribution to our
    unitholders. For example, it includes a provision that will
    enable us, if we choose, to distribute as operating surplus up
    to $      million of cash we
    receive in the future from non-operating sources such as asset
    sales, issuances of securities and long-term borrowings that
    would otherwise be distributed as capital surplus.
We define interim capital transactions as (i) borrowings,
    (ii) sales of equity and debt securities, (iii) sales
    or other dispositions of assets outside the ordinary course of
    business, (iv) capital contributions received,
    (v) corporate reorganizations or restructurings and
    (vi) the termination of interest rate hedge contracts or
    commodity hedge contracts prior to the termination date
    specified therein (provided that cash receipts from any such
    termination will be included in operating surplus in equal
    quarterly installments over the remaining scheduled life of such
    contract).
We define operating expenditures as all of our cash
    expenditures, including, but not limited to, taxes,
    reimbursements of expenses to our general partner, interest
    payments, payments made in the ordinary course of business under
    interest rate hedge contracts and commodity hedge contracts,
    estimated maintenance capital expenditures (as discussed in
    further detail below) and non-pro rata repurchases of units
    (other than those made with the proceeds of an interim capital
    transaction), provided that operating expenditures will not
    include:
•
payments (including prepayments and prepayment penalties) of
    principal of and premium on indebtedness;
•
expansion capital expenditures;
•
actual maintenance capital expenditures;
•
payment of transaction expenses (including taxes) relating to
    interim capital transactions; or
•
distributions to partners.
Capital
    Expenditures
Maintenance capital expenditures are cash expenditures
    (including expenditures for the addition or improvement to our
    capital assets) made to maintain or replace, including over the
    long term, our operating capacity, asset base or operating
    income. Examples of maintenance capital expenditures include
    capital
57
Table of Contents
expenditures associated with the replacement of equipment and
    coal reserves, whether through the expansion of an existing mine
    or the acquisition or development of new reserves, to the extent
    such expenditures are made to maintain our operating capacity,
    asset base or operating income. Maintenance capital expenditures
    will also include reclamation expenses.
Because our maintenance capital expenditures can be irregular,
    the amount of our actual maintenance capital expenditures may
    differ substantially from period to period, which could cause
    similar fluctuations in the amounts of operating surplus,
    adjusted operating surplus and cash available for distribution
    to our unitholders if we subtracted actual maintenance capital
    expenditures from operating surplus.
Our partnership agreement requires that an estimate of the
    average quarterly maintenance capital expenditures necessary
    over the long term be subtracted from operating surplus each
    quarter as opposed to the actual amounts spent. The amount of
    estimated maintenance capital expenditures deducted from
    operating surplus for those periods will be subject to review
    and change by our general partner at least once a year. The
    estimate will be made annually and whenever an event occurs that
    is likely to result in a material adjustment to the amount of
    our maintenance capital expenditures on a long-term basis, such
    as a major acquisition or the introduction of new governmental
    regulations that will impact our business. For purposes of
    calculating operating surplus (other than when used to determine
    whether the subordination period has ended), any adjustment to
    this estimate will be prospective only. For a discussion of the
    amounts we have allocated toward estimated maintenance capital
    expenditures, please read "Cash Distribution Policy and
    Restrictions on Distributions."
The use of estimated maintenance capital expenditures in
    calculating operating surplus will have the following effects:
•
it will reduce the risk that maintenance capital expenditures in
    any one quarter will be large enough to render operating surplus
    less than the initial quarterly distribution to be paid on all
    the units for the quarter and subsequent quarters;
•
it will increase our ability to distribute as operating surplus
    cash we receive from non-operating sources;
•
it will be more difficult for us to raise our distribution above
    the minimum quarterly distribution and pay incentive
    distributions on the incentive distribution rights held by our
    general partner; and
•
it will reduce the likelihood that a large maintenance capital
    expenditure in a period will prevent our general partner's
    affiliates from being able to convert some or all of their
    subordinated units into common units since the effect of an
    estimate is to spread the expected expense over several periods,
    thereby mitigating the effect of the actual payment of the
    expenditure on any single period.
Expansion capital expenditures are cash expenditures incurred
    for acquisitions or capital improvements, which are (i) any
    addition or improvement to our capital assets, (ii) the
    acquisition of existing, or the construction of new, capital
    assets (including coal mines and related assets), or
    (iii) capital contributions to an entity in which we own an
    equity interest for our pro rata share of the cost of
    acquisitions of existing, or the construction of new, capital
    assets by such entity, in each case if such addition,
    improvement, acquisition or construction is made to increase our
    long-term operating capacity, asset base or operating income.
    Examples of expansion capital expenditures include the
    acquisition of reserves, equipment or a new mine or the
    expansion of an existing mine, to the extent such capital
    expenditures are expected to expand our long-term operating
    capacity, asset base or operating income. Expansion capital
    expenditures are not subtracted from operating surplus.
Subordination
    Period
General
Our partnership agreement provides that, during the
    subordination period (which we define below), the common units
    will have the right to receive distributions of available cash
    from operating surplus each quarter in an amount equal to
    $      per common unit, which amount is
    defined in our partnership agreement as the minimum quarterly
    distribution, plus any arrearages in the payment of the minimum
    quarterly distribution on the common units from prior quarters,
    before any distributions of available cash from operating
    surplus may
58
Table of Contents
be made on the subordinated units. These units are deemed
    "subordinated" because for a period of time, referred
    to as the subordination period, the subordinated units will not
    be entitled to receive any distributions until the common units
    have received the minimum quarterly distribution plus any
    arrearages from prior quarters. Furthermore, no arrearages will
    be paid on the subordinated units. The practical effect of the
    subordinated units is to increase the likelihood that during the
    subordination period there will be available cash to be
    distributed on the common units.
Definition
    of Subordination Period
The subordination period will begin upon the date of this
    offering and will extend until the first business day of any
    quarter beginning after June 30, 2013 that each of the
    following tests are met:
•
distributions of available cash from operating surplus on each
    of the outstanding common units, subordinated units and general
    partner units equaled or exceeded the minimum quarterly
    distribution for each of the three consecutive, non-overlapping
    four-quarter periods immediately preceding that date;
•
the "adjusted operating surplus" (as defined below)
    generated during each of the three consecutive, non-overlapping
    four-quarter periods immediately preceding that date equaled or
    exceeded the sum of the minimum quarterly distributions on all
    of the outstanding common units, subordinated units and general
    partner units during those periods on a fully diluted basis
    during those periods; and
•
there are no arrearages in payment of the minimum quarterly
    distribution on the common units.
For purposes of determining whether sufficient adjusted
    operating surplus has been generated under the above conversion
    test, the Conflicts Committee may adjust operating surplus
    upwards or downwards if it determines in good faith that the
    amount of estimated maintenance capital expenditures used in the
    determination of adjusted operating surplus was materially
    incorrect, based on the circumstances prevailing at the time of
    the original estimate, for any one or more of the preceding two
    four-quarter periods.
Early
    Termination of Subordination Period
Notwithstanding the foregoing, the subordination period will
    automatically terminate and all of the subordinated units will
    convert into common units on a
one-for-one
basis if each of the following occurs:
•
distributions of available cash from operating surplus on each
    of the outstanding common units, subordinated units and general
    partner units equaled or exceeded
    $      per quarter (150.0% of the
    minimum quarterly distribution) for each calendar quarter in the
    immediately preceding four-quarter period;
•
the "adjusted operating surplus" (as defined below)
    generated during each calendar quarter in the immediately
    preceding four-quarter period equaled or exceeded the sum of
    $      (150.0% of the minimum quarterly
    distribution) on each of the outstanding common units,
    subordinated units and general partner units during that period
    on a fully diluted basis; and
•
there are no arrearages in payment of the minimum quarterly
    distributions on the common units.
Expiration
    of the Subordination Period
When the subordination period ends, each outstanding
    subordinated unit will convert into one common unit and will
    participate pro-rata with the other common units in
    distributions of available cash. In addition, if the unitholders
    remove our general partner other than for cause and no units
    held by our general partner and its affiliates are voted in
    favor of such removal:
•
the subordination period will end and each subordinated unit
    will immediately convert into one common unit;
•
any existing arrearages in payment of the minimum quarterly
    distribution on the common units will be extinguished; and
59
Table of Contents
•
our general partner will have the right to convert its general
    partner interest and its incentive distribution rights into
    common units or to receive cash in exchange for those interests.
Definition
    of Adjusted Operating Surplus
Adjusted operating surplus is intended to reflect the cash
    generated from operations during a particular period and
    therefore excludes net drawdowns of reserves of cash generated
    in prior periods. Adjusted operating surplus consists of:
•
operating surplus generated with respect to that period; less
•
any net decrease in cash reserves for operating expenditures
    with respect to that period not relating to an operating
    expenditure made with respect to that period; plus
•
any net decrease made in subsequent periods to cash reserves for
    operating expenditures initially established with respect to
    such period to the extent such decrease results in a reduction
    in adjusted operating surplus in subsequent periods; plus
•
any net increase in cash reserves for operating expenditures
    with respect to that period required by any debt instrument for
    the repayment of principal, interest or premium.
Distributions
    of Available Cash from Operating Surplus during the
    Subordination Period
We will make distributions of available cash from operating
    surplus for any quarter during the subordination period in the
    following manner:
•
first
, 98% to the common unitholders, pro rata, and 2.0%
    to our general partner, until we distribute for each outstanding
    common unit an amount equal to the minimum quarterly
    distribution for that quarter;
•
second
, 98% to the common unitholders, pro rata, and 2.0%
    to our general partner, until we distribute for each outstanding
    common unit an amount equal to any arrearages in payment of the
    minimum quarterly distribution on the common units for any prior
    quarters during the subordination period;
•
third
, 98% to the subordinated unitholders, pro rata, and
    2.0% to our general partner, until we distribute for each
    subordinated unit an amount equal to the minimum quarterly
    distribution for that quarter; and
•
thereafter
, in the manner described in
    "— General Partner Interest and Incentive
    Distribution Rights" below.
The preceding discussion is based on the assumptions that our
    general partner maintains its 2.0% general partner interest and
    that we do not issue additional classes of equity securities.
Distributions
    of Available Cash from Operating Surplus after the Subordination
    Period
We will make distributions of available cash from operating
    surplus for any quarter after the subordination period in the
    following manner:
•
first
, 98% to all unitholders, pro rata, and 2.0% to our
    general partner, until we distribute for each outstanding unit
    an amount equal to the minimum quarterly distribution for that
    quarter; and
•
thereafter
, in the manner described in
    "— General Partner Interest and Incentive
    Distribution Rights" below.
The preceding discussion is based on the assumptions that our
    general partner maintains its 2.0% general partner interest and
    that we do not issue additional classes of equity securities.
60
Table of Contents
General
    Partner Interest and Incentive Distribution Rights
Our partnership agreement provides that our general partner
    initially will be entitled to 2.0% of all distributions that we
    make prior to our liquidation. Our general partner has the
    right, but not the obligation, to contribute a proportionate
    amount of capital to us to maintain its 2.0% general partner
    interest if we issue additional units. Our general
    partner's 2.0% interest, and the percentage of our cash
    distributions to which it is entitled from such 2.0% interest,
    will be proportionately reduced if we issue additional units in
    the future and our general partner does not contribute a
    proportionate amount of capital to us in order to maintain its
    2.0% general partner interest. Our general partner will be
    entitled to make a capital contribution in order to maintain its
    2.0% general partner interest in the form of the contribution to
    us of common units based on the current market value of the
    contributed common units.
Incentive distribution rights represent the right to receive an
    increasing percentage (13.0%, 23.0% and 48.0%) of quarterly
    distributions of available cash from operating surplus after the
    minimum quarterly distribution and the target distribution
    levels have been achieved. Our general partner currently holds
    the incentive distribution rights, but may transfer these rights
    separately from its general partner interest, subject to
    restrictions in our partnership agreement.
The following discussion assumes that our general partner
    maintains its 2.0% general partner interest, that there are no
    arrearages on common units and that our general partner
    continues to own the incentive distribution rights.
If for any quarter:
•
we have distributed available cash from operating surplus to the
    unitholders in an amount equal to the minimum quarterly
    distribution; and
•
we have distributed available cash from operating surplus on
    outstanding common units and the general partner interest in an
    amount necessary to eliminate any cumulative arrearages in
    payment of the minimum quarterly distribution to the common
    unitholders;
then, we will distribute any additional available cash from
    operating surplus for that quarter among the unitholders and our
    general partner in the following manner:
•
first
, 98% to all unitholders, pro rata, and 2.0% to our
    general partner, until each unitholder receives a total of
    $      per unit for that quarter (the
    "first target distribution");
•
second
, 85% to all unitholders, pro rata, and 15% to our
    general partner, until each unitholder receives a total of
    $      per unit for that quarter (the
    "second target distribution");
•
third
, 75% to all unitholders, pro rata, and 25% to our
    general partner, until each unitholder receives a total of
    $      per unit for that quarter (the
    "third target distribution"); and
•
thereafter
, 50% to all unitholders, pro rata, and 50% to
    our general partner.
Percentage
    Allocations of Available Cash from Operating Surplus
The following table illustrates the percentage allocations of
    available cash from operating surplus between the unitholders
    and our general partner based on the specified target
    distribution levels. The amounts set forth under "Marginal
    Percentage Interest in Distributions" are the percentage
    interests of our general partner and the unitholders in any
    available cash from operating surplus we distribute up to and
    including the corresponding amount in the column "Total
    Quarterly Distribution Per Unit Target Amount." The
    percentage interests shown for our unitholders and our general
    partner for the minimum quarterly distribution are also
    applicable to quarterly distribution amounts that are less than
    the minimum quarterly distribution. The percentage interests set
    forth below for our general partner include its 2.0% general
    partner interest and assume that there are no arrearages on
    common units, our general partner has contributed any additional
    capital necessary to maintain its 2.0% general partner interest
    and our general partner has not transferred its incentive
    distribution rights.
61
Table of Contents
Marginal Percentage Interest
Total Quarterly Distribution
in Distributions
Per Unit Target Amount
Unitholders
General Partner
Minimum Quarterly Distribution
$
98
%
2
%
First Target Distribution
up to $
98
%
2
%
Second Target Distribution
above $
up to $
85
%
15
%
Third Target Distribution
above $
up to $
75
%
25
%
Thereafter
above $
50
%
50
%
General
    Partner's Right to Reset Incentive Distribution
    Levels
Our general partner, as the holder of our incentive distribution
    rights, has the right under our partnership agreement to elect
    to relinquish the right to receive incentive distribution
    payments based on the initial cash target distribution levels
    and to reset, at higher levels, the minimum quarterly
    distribution amount and cash target distribution levels upon
    which the incentive distribution payments to our general partner
    would be set. Our general partner's right to reset the
    minimum quarterly distribution amount and the target
    distribution levels upon which the incentive distributions
    payable to our general partner are based may be exercised,
    without approval of our unitholders or the conflicts committee
    of our general partner, at any time when there are no
    subordinated units outstanding and we have made cash
    distributions to the holders of the incentive distribution
    rights at the highest level of incentive distribution for each
    of the prior four consecutive fiscal quarters. The reset minimum
    quarterly distribution amount and target distribution levels
    will be higher than the minimum quarterly distribution amount
    and the target distribution levels prior to the reset such that
    our general partner will not receive any incentive distributions
    under the reset target distribution levels until cash
    distributions per unit following this event increase as
    described below. We anticipate that our general partner would
    exercise this reset right in order to facilitate acquisitions or
    internal growth projects that would otherwise not be
    sufficiently accretive to cash distributions per common unit,
    taking into account the existing levels of incentive
    distribution payments being made to our general partner.
In connection with the resetting of the minimum quarterly
    distribution amount and the target distribution levels and the
    corresponding relinquishment by our general partner of incentive
    distribution payments based on the target cash distributions
    prior to the reset, our general partner will be entitled to
    receive a number of newly issued common units and general
    partner units based on a predetermined formula described below
    that takes into account the "cash parity" value of the
    average cash distributions related to the incentive distribution
    rights received by our general partner for the two quarters
    prior to the reset event as compared to the average cash
    distributions per common unit during that two-quarter period.
    Our general partner will be issued the number of general partner
    units necessary to maintain our general partner's interest
    in us immediately prior to the reset election.
The number of common units that our general partner would be
    entitled to receive from us in connection with a resetting of
    the minimum quarterly distribution amount and the target
    distribution levels then in effect would be equal to the
    quotient determined by dividing (x) the average amount of
    cash distributions received by our general partner in respect of
    its incentive distribution rights during the two consecutive
    fiscal quarters ended immediately prior to the date of such
    reset election by (y) the average of the amount of cash
    distributed per common unit during each of that two-quarter
    period.
Following a reset election by our general partner, the minimum
    quarterly distribution amount will be reset to an amount equal
    to the average cash distribution amount per unit for the two
    fiscal quarters immediately preceding the reset election (which
    amount we refer to as the "reset minimum quarterly
    distribution") and the target distribution levels will be
    reset to be correspondingly higher such that we would distribute
    all of our available cash from operating surplus for each
    quarter thereafter as follows:
•
first
, 98.0% to all unitholders, pro rata, and 2.0% to
    our general partner, until each unitholder receives an amount
    equal to 115.0% of the reset minimum quarterly distribution for
    that quarter;
62
Table of Contents
•
second
, 85.0% to all unitholders, pro rata, and 15.0% to
    our general partner, until each unitholder receives an amount
    per unit equal to 125.0% of the reset minimum quarterly
    distribution for the quarter;
•
third
, 75.0% to all unitholders, pro rata, and 25.0% to
    our general partner, until each unitholder receives an amount
    per unit equal to 150.0% of the reset minimum quarterly
    distribution for the quarter; and
•
thereafter
, 50.0% to all unitholders, pro rata, and 50.0%
    to our general partner.
The following table illustrates the percentage allocation of
    available cash from operating surplus between the unitholders
    and our general partner at various cash distribution levels
    (i) pursuant to the cash distribution provisions of our
    partnership agreement in effect at the closing of this offering,
    as well as (ii) following a hypothetical reset of the
    minimum quarterly distribution and target distribution levels
    based on the assumption that the average quarterly cash
    distribution amount per common unit during the two fiscal
    quarters immediately preceding the reset election was
    $     .
Marginal Percentage
Quarterly Distribution
Interest in Distributions
Quarterly Distribution Per Unit
Per Unit Prior to Reset
Unitholders
General Partner
Following Hypothetical Reset
Minimum Quarterly Distribution
$
98%
2
%
$
First Target Distribution
up to $
98%
2
%
up to     $
(1
)
Second Target Distribution
above $
up to $
85%
15
%
above $
(1)
up

    to     $
(2
)
Third Target Distribution
above $
up to $
75%
25
%
above $
(2)
up

    to     $
(3
)
Thereafter
above $
50%
50
%
above     $
(3
)
(1)
This amount is 115.0% of the
    hypothetical reset minimum quarterly distribution.
(2)
This amount is 125.0% of the
    hypothetical reset minimum quarterly distribution.
(3)
This amount is 150.0% of the
    hypothetical reset minimum quarterly distribution.
The following table illustrates the total amount of available
    cash from operating surplus that would be distributed to the
    unitholders and our general partner, including in respect of
    incentive distribution rights, or IDRs, based on an average of
    the amounts distributed each quarter for the two quarters
    immediately prior to the reset. The table assumes that
    immediately prior to the reset there would
    be          
    common units outstanding, our general partner has maintained its
    2.0% general partner interest, and the average distribution to
    each common unit would be $      for
    the two quarters prior to the reset.
Cash
Cash Distributions to General Partner Prior to Reset
Distributions to
2.0%
Quarterly
Common
General
Incentive
Distribution Per
Unitholders
Class C
Partner
Distribution
Total
Unit Prior to Reset
Prior to Reset
Units
Interest
Rights
Total
Distributions
Minimum Quarterly Distribution
$
$
$
$
$
$
$
First Target Distribution
up to $
Second Target Distribution
above $
up to $
Third Target Distribution
above $
up to $
Thereafter
above $
$
$
$
$
$
$
The following table illustrates the total amount of available
    cash from operating surplus that would be distributed to the
    unitholders and our general partner, including in respect of
    IDRs, with respect to the quarter in which the reset occurs. The
    table reflects that as a result of the reset there would
    be          
    common units outstanding, our general partner's 2.0%
    interest has been maintained, and the average distribution to
    each common unit would be $      . The
    number of common units to be issued to our general partner upon
    the reset was calculated by dividing (i) the average of the
    amounts received by our general partner in respect of its IDRs
    for the two quarters prior to the reset as shown in the table
    above, or $     ; by (ii) the
    average
63
Table of Contents
available cash distributed on each common unit for the two
    quarters prior to the reset as shown in the table above, or
    $      .
Cash
Cash Distributions to General Partner After Reset
Distributions to
2.0%
Common
General
Incentive
Quarterly Distribution
Unitholders
Class C
Partner
Distribution
Total
Per Unit After Reset
After Reset
Units
Interest
Rights
Total
Distributions
Minimum Quarterly Distribution
$
$
$
$
$
$
$
First Target Distribution
up to $
Second Target Distribution
above $
up to $
Third Target Distribution
above $
up to $
Thereafter
above $
$
$
$
$
$
$
Our general partner will be entitled to cause the minimum
    quarterly distribution amount and the target distribution levels
    to be reset on more than one occasion, provided that it may not
    make a reset election except at a time when it has received
    incentive distributions for the prior four consecutive fiscal
    quarters based on the highest level of incentive distributions
    that it is entitled to receive under our partnership agreement.
Distributions
    from Capital Surplus
How
    Distributions from Capital Surplus Will Be Made
We will make distributions of available cash from capital
    surplus, if any, in the following manner:
•
first
, 98% to all unitholders, pro rata, and 2.0% to our
    general partner, until we distribute for each common unit that
    was issued in this offering, an amount of available cash from
    capital surplus equal to the initial public offering price in
    this offering;
•
second
, 98% to all unitholders, pro rata, and 2.0% to our
    general partner, until we distribute for each common unit, an
    amount of available cash from capital surplus equal to any
    unpaid arrearages in payment of the minimum quarterly
    distribution on the outstanding common units; and
•
thereafter
, we will make all distributions of available
    cash from capital surplus as if they were from operating surplus.
The preceding discussion is based on the assumptions that our
    general partner maintains its 2.0% general partner interest and
    that we do not issue additional classes of equity securities.
Effect
    of a Distribution from Capital Surplus
Our partnership agreement treats a distribution of capital
    surplus as the repayment of the initial unit price from this
    initial public offering, which is a return of capital. The
    initial public offering price less any distributions of capital
    surplus per unit is referred to as the "unrecovered initial
    unit price." Each time a distribution of capital surplus is
    made, the minimum quarterly distribution and the target
    distribution levels will be reduced in the same proportion as
    the corresponding reduction in the unrecovered initial unit
    price. Because distributions of capital surplus will reduce the
    minimum quarterly distribution, after any of these distributions
    are made, it may be easier for our general partner to receive
    incentive distributions and for the subordinated units to
    convert into common units. However, any distribution of capital
    surplus before the unrecovered initial unit price is reduced to
    zero cannot be applied to the payment of the minimum quarterly
    distribution or any arrearages.
Once we distribute capital surplus on a unit issued in this
    offering in an amount equal to the initial unit price, we will
    reduce the minimum quarterly distribution and the target
    distribution levels to zero. We will then make all future
    distributions from operating surplus, with 50% being paid to the
    unitholders, pro rata, and 50% to our general partner. The
    percentage interests shown for our general partner include its
    2.0% general partner interest and assume that our general
    partner has not transferred the incentive distribution rights.
64
Table of Contents
Adjustment
    to the Minimum Quarterly Distribution and Target Distribution
    Levels
In addition to adjusting the minimum quarterly distribution and
    target distribution levels to reflect a distribution of capital
    surplus, if we combine our units into fewer units or subdivide
    our units into a greater number of units, we will
    proportionately adjust:
•
the minimum quarterly distribution;
•
the number of common units into which a subordinated unit is
    convertible;
•
target distribution levels; and
•
the unrecovered initial unit price.
For example, if a
two-for-one
split of the common units should occur, the minimum quarterly
    distribution, the target distribution levels and the unrecovered
    initial unit price would each be reduced to 50% of its initial
    level, and each subordinated unit would be convertible into two
    common units. We will not make any adjustment by reason of the
    issuance of additional units for cash or property.
In addition, if legislation is enacted or if existing law is
    modified or interpreted by a governmental authority, so that we
    become taxable as a corporation or otherwise subject to taxation
    as an entity for federal, state or local income tax purposes,
    our partnership agreement specifies that the minimum quarterly
    distribution and the target distribution levels for each quarter
    may be reduced by multiplying each distribution level by a
    fraction, the numerator of which is available cash for that
    quarter and the denominator of which is the sum of available
    cash for that quarter plus our general partner's estimate
    of our aggregate liability for the quarter for such income taxes
    payable by reason of such legislation or interpretation. To the
    extent that the actual tax liability differs from the estimated
    tax liability for any quarter, the difference will be accounted
    for in subsequent quarters.
Distributions
    of Cash Upon Liquidation
General
If we dissolve in accordance with our partnership agreement, we
    will sell or otherwise dispose of our assets in a process called
    liquidation. We will first apply the proceeds of liquidation to
    the payment of our creditors. We will distribute any remaining
    proceeds to the unitholders and our general partner, in
    accordance with their capital account balances, as adjusted to
    reflect any gain or loss upon the sale or other disposition of
    our assets in liquidation.
The allocations of gain and loss upon liquidation are intended,
    to the extent possible, to entitle the holders of outstanding
    common units to a preference over the holders of outstanding
    subordinated units upon our liquidation, to the extent required
    to permit common unitholders to receive their unrecovered
    initial unit price plus the minimum quarterly distribution for
    the quarter during which liquidation occurs plus any unpaid
    arrearages in payment of the minimum quarterly distribution on
    the common units. However, there may not be sufficient gain upon
    our liquidation to enable the holders of common units to fully
    recover all of these amounts, even though there may be cash
    available for distribution to the holders of subordinated units.
    Any further net gain recognized upon liquidation will be
    allocated in a manner that takes into account the incentive
    distribution rights of our general partner.
Manner
    of Adjustments for Gain
The manner of the adjustment for gain is set forth in our
    partnership agreement. If our liquidation occurs before the end
    of the subordination period, we will allocate any gain to our
    partners in the following manner:
•
first
, to our general partner and the holders of units
    who have negative balances in their capital accounts to the
    extent of and in proportion to those negative balances;
65
Table of Contents
•
second
, 98% to the common unitholders, pro rata, and 2.0%
    to our general partner, until the capital account for each
    common unit is equal to the sum of:
(1) the unrecovered initial unit price;
(2) the amount of the minimum quarterly distribution for
    the quarter during which our liquidation occurs; and
(3) any unpaid arrearages in payment of the minimum
    quarterly distribution;
•
third
, 98% to the subordinated unitholders, pro rata, and
    2.0% to our general partner, until the capital account for each
    subordinated unit is equal to the sum of:
(1) the unrecovered initial unit price; and
(2) the amount of the minimum quarterly distribution for
    the quarter during which our liquidation occurs;
•
fourth
, 98% to all unitholders, pro rata, and 2.0% to our
    general partner, until we allocate under this paragraph an
    amount per unit equal to:
(1) the sum of the excess of the first target distribution
    per unit over the minimum quarterly distribution per unit for
    each quarter of our existence; less
(2) the cumulative amount per unit of any distributions of
    available cash from operating surplus in excess of the minimum
    quarterly distribution per unit that we distributed 98% to the
    unitholders, pro rata, and 2.0% to our general partner, for each
    quarter of our existence;
•
fifth
, 85% to all unitholders, pro rata, and 15% to our
    general partner, until we allocate under this paragraph an
    amount per unit equal to:
(1) the sum of the excess of the second target distribution
    per unit over the first target distribution per unit for each
    quarter of our existence; less
(2) the cumulative amount per unit of any distributions of
    available cash from operating surplus in excess of the first
    target distribution per unit that we distributed 96% to the
    unitholders, pro rata, and 4% to our general partner for each
    quarter of our existence;
•
sixth
, 75% to all unitholders, pro rata, and 25% to our
    general partner, until we allocate under this paragraph an
    amount per unit equal to:
(1) the sum of the excess of the third target distribution
    per unit over the second target distribution per unit for each
    quarter of our existence; less
(2) the cumulative amount per unit of any distributions of
    available cash from operating surplus in excess of the second
    target distribution per unit that we distributed 94% to the
    unitholders, pro rata, and 6% to our general partner for each
    quarter of our existence;
•
thereafter
, 50% to all unitholders, pro rata, and 50% to
    our general partner.
The percentages set forth above are based on the assumption that
    our general partner has not transferred its incentive
    distribution rights and that we do not issue additional classes
    of equity securities.
If the liquidation occurs after the end of the subordination
    period, the distinction between common units and subordinated
    units will disappear, so that clause (3) of the second
    bullet point above and all of the third bullet point above will
    no longer be applicable.
66
Table of Contents
Manner
    of Adjustments for Losses
If our liquidation occurs before the end of the subordination
    period, we will generally allocate any loss to our general
    partner and unitholders in the following manner:
•
first
, 98% to holders of subordinated units in proportion
    to the positive balances in their capital accounts and 2.0% to
    our general partner, until the capital accounts of the
    subordinated unitholders have been reduced to zero;
•
second
, 98% to the holders of common units in proportion
    to the positive balances in their capital accounts and 2.0% to
    our general partner, until the capital accounts of the common
    unitholders have been reduced to zero; and
•
thereafter
, 100% to our general partner.
If the liquidation occurs after the end of the subordination
    period, the distinction between common units and subordinated
    units will disappear, so that all of the first bullet point
    above will no longer be applicable.
Adjustments
    to Capital Accounts
We will make adjustments to capital accounts upon the issuance
    of additional units. In doing so, we will allocate any
    unrealized and, for tax purposes, unrecognized gain or loss
    resulting from the adjustments to the unitholders and our
    general partner in the same manner as we allocate gain or loss
    upon liquidation. In the event that we make positive adjustments
    to the capital accounts upon the issuance of additional units,
    we will allocate any later negative adjustments to the capital
    accounts resulting from the issuance of additional units or upon
    our liquidation in a manner which results, to the extent
    possible, in our general partner's capital account balances
    equaling the amount which they would have been if no earlier
    positive adjustments to the capital accounts had been made.
67
Table of Contents
SELECTED
    HISTORICAL AND PRO FORMA CONSOLIDATED
FINANCIAL AND OPERATING DATA
The following table presents our selected historical
    consolidated financial and operating data, as well as that of
    our accounting predecessor and wholly owned subsidiary, Oxford
    Mining Company, as of the dates and for the periods indicated.
    The following table also presents our selected pro forma
    consolidated financial and operating data as of the dates and
    for the periods indicated.
The selected financial data for the year ended December 31,
    2005 are derived from the audited historical consolidated
    balance sheet of Oxford Mining Company that is not included in
    this prospectus. The selected historical consolidated financial
    data presented as of and for the year ended December 31,
    2006 are derived from the audited historical consolidated
    financial statements of Oxford Mining Company that are not
    included in this prospectus. The selected historical
    consolidated financial data presented for the period from
    January 1, 2007 to August 23, 2007 are derived from
    the audited historical consolidated financial statements of
    Oxford Mining Company that are included elsewhere in this
    prospectus. The selected historical consolidated financial data
    presented as of December 31, 2007 for the period from
    August 24, 2007 to December 31, 2007 and as of and for
    the years ended December 31, 2008 and 2009 are derived from
    our audited historical consolidated financial statements that
    are included elsewhere in this prospectus.
The selected pro forma consolidated financial data presented as
    of and for the year ended December 31, 2009 are derived
    from our unaudited pro forma consolidated financial statements
    included elsewhere in this prospectus. Our unaudited pro forma
    consolidated statement of operations and consolidated balance
    sheet give pro forma effect to this offering and the
    transactions related to this offering described in
    "Summary — The Transactions" and "Use
    of Proceeds." The unaudited pro forma consolidated
    statement of operations also gives pro forma effect to the
    Phoenix Coal acquisition. The unaudited pro forma consolidated
    balance sheet assumes this offering and the transactions related
    to this offering occurred as of December 31, 2009. The
    unaudited pro forma consolidated statement of operations for the
    year ended December 31, 2009 assumes the Phoenix Coal
    acquisition, this offering and the transactions related to this
    offering occurred as of January 1, 2009. We have not given
    pro forma effect to incremental selling, general and
    administrative expenses of approximately $3.0 million that
    we expect to incur as a result of being a publicly traded
    partnership.
For a detailed discussion of the following table, please read
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations." The following table
    should also be read in conjunction with
    "Summary — The Transactions," "Use of
    Proceeds," "Business — Our History,"
    the historical consolidated financial statements of Oxford
    Mining Company and our unaudited pro forma consolidated
    financial statements and audited consolidated financial
    statements included elsewhere in this prospectus. Among other
    things, those historical and pro forma consolidated financial
    statements include more detailed information regarding the basis
    of presentation for the information in the following table.
The following table presents a non-GAAP financial measure,
    Adjusted EBITDA, which we use in our business as it is an
    important supplemental measure of our performance. Adjusted
    EBITDA represents net income (loss) attributable to our
    unitholders before interest, taxes, depreciation, depletion and
    amortization, gain from purchase of a business, amortization of
    below-market coal sales contracts and non-cash equity
    compensation expense. This measure is not calculated or
    presented in accordance with GAAP. We explain this
68
Table of Contents
measure below and reconcile it to net income (loss) attributable
    to our unitholders, its most directly comparable financial
    measure calculated and presented in accordance with GAAP.
Oxford Mining Company
(Predecessor)
Oxford Resource Partners, LP
Pro Forma
Period from
Period from
Oxford Resource
January 1,
August 24,
Partners, LP
Year Ended
Year Ended
2007 to
2007 to
Year Ended
Year Ended
Year Ended
December 31,
December 31,
August 23,
December 31,
December 31,
December
December 31,
2005
2006
2007
2007
2008
31, 2009
2009
(unaudited)
(in thousands, except per ton amounts)
Statement of Operations Data:
Revenues:
Coal sales
$
141,440
$
96,799
$
61,324
$
193,699
$
254,171
$
312,490
Transportation revenue
27,771
18,083
10,204
31,839
32,490
37,221
Royalty and non-coal revenue
6,643
3,267
1,407
4,951
7,183
7,183
Total revenues
175,854
118,149
72,935
230,489
293,844
356,894
Costs and expenses:
Cost of coal sales (excluding DD&A, shown separately)
106,657
70,415
40,721
151,421
170,698
213,446
Cost of purchased coal
22,159
17,494
9,468
12,925
19,487
29,792
Cost of transportation
27,771
18,083
10,204
31,839
32,490
37,221
Depreciation, depletion, and amortization
12,396
9,025
4,926
16,660
25,902
31,424
Selling, general and administrative expenses
2,097
3,643
2,114
9,577
13,242
25,735
Total costs and expenses
171,080
118,660
67,433
222,422
261,819
337.618
Income (loss) from operations
4,774
(511
)
5,502
8,067
32,025
19,276
Interest income
30
26
55
62
35
39
Interest expense
(3,672
)
(2,386
)
(3,498
)
(7,720
)
(6,484
)
(6,341
)
Gain from purchase of
    business
(1)
—
—
—
—
3,823
3,823
Net income (loss)
1,132
(2,871
)
2,059
409
29,399
16,797
Less: Net income attributable to noncontrolling interest
—
(682
)
(537
)
(2,891
)
(5,895
)
(5,895
)
Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
$
1,132
$
(3,553
)
$
1,522
$
(2,482
)
$
23,504
$
10,902
Statement of Cash Flows Data:
Net cash provided by (used in):
Operating activities
$
16,236
$
17,634
$
(8,478
)
$
33,951
$
35,540
Investing activities
(13,547
)
(16,619
)
(103,336
)
(23,901
)
(51,115
)
Financing activities
(2,548
)
(234
)
111,274
4,494
3,762
Other Financial Data:
Adjusted
    EBITDA
(2)
$
17,170
$
7,832
$
9,145
$
20,349
$
50,799
$
39,016
Maintenance capital
    expenditures
(3)
11,695
13,020
4,841
21,529
27,461
27,461
Distributions
n/a
n/a
—
12,503
13,407
n/a
Balance Sheet Data (at period
    end):
(4)
Cash and cash equivalents
$
252
$
392
$
1,175
$
635
$
15,179
$
3,366
$
30,769
Trade accounts receivable
21,979
16,826
18,396
17,547
21,528
24,403
2,000
Inventory
3,884
3,977
4,824
4,655
5,134
8,801
8,801
PPE, net
47,428
48,001
54,510
106,408
112,446
149,461
149,461
Total assets
85,099
80,533
90,893
146,774
171,297
203,363
209,726
Total debt (current and long-term)
46,091
43,697
43,165
75,654
83,977
95,711
98,711
Operating Data:
Tons of coal produced
3,913
2,693
1,634
5,089
5,846
7,221
Tons of coal purchased
962
641
305
434
530
885
Tons of coal sold
4,872
3,333
1,938
5,528
6,311
8,051
Average sales price per
    ton
(5)
$
29.03
$
29.04
$
31.64
$
35.04
$
40.27
$
38.81
Cost of coal sales per ton
    produced
(6)
$
27.26
$
26.15
$
24.92
$
29.75
$
29.20
$
29.56
Cost of purchased coal per
    ton
(7)
$
23.03
$
27.29
$
31.08
$
29.81
$
36.79
$
33.66
(1)
On September 30, 2009, we
    acquired all of the active surfacing mining operations of
    Phoenix Coal. The purchase price of this acquisition was less
    than the fair value of the net assets and liabilities we
    acquired. We recorded this difference as a gain of
    $3.8 million for the year ending December 31, 2009.
69
Table of Contents
(2)
Adjusted EBITDA is used as a
    supplemental financial measure by management and by external
    users of our financial statements, such as investors and
    lenders, to assess:
•
our financial performance without regard to financing methods,
    capital structure or income taxes;
•
our ability to generate cash sufficient to pay interest on our
    indebtedness and to make distributions to our unitholders and
    our general partner;
•
our compliance with certain financial covenants applicable to
    our credit facility; and
•
our ability to fund capital expenditure projects from operating
    cash flow.
Adjusted EBITDA should not be considered an alternative to net
    income (loss) attributable to our unitholders, income from
    operations, cash flows from operating activities or any other
    measure of performance presented in accordance with GAAP.
    Adjusted EBITDA excludes some, but not all, items that affect
    net income (loss) attributable to our unitholders, income from
    operations and cash flows, and these measures may vary among
    other companies. Therefore, Adjusted EBITDA as presented below
    may not be comparable to similarly titled measures of other
    companies.
The following table presents a reconciliation of Adjusted EBITDA
    to net income (loss) attributable to our unitholders for each of
    the periods indicated:
Pro Forma
Oxford Resource
Oxford Mining Company (Predecessor)
Oxford Resource Partners, LP
Partners, LP
Period from
Period from
January 1,
August 24,
Year Ended
2007 to
2007 to
Year Ended
Year Ended
Year Ended
December 31,
August 23,
December 31,
December 31,
December 31,
December 31,
2006
2007
2007
2008
2009
2009
(in thousands)
(unaudited)
Reconciliation of Adjusted EBITDA to net income (loss)
    attributable to Oxford Resource Partners, LP unitholders:
Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
$
1,132
$
(3,553
)
$
1,522
$
(2,482
)
$
23,504
$
10,902
PLUS:
Depreciation, depletion and amortization
12,396
9,025
4,926
16,660
25,902
31,424
Interest expense
3,672
2,386
3,498
7,720
6,484
6,341
Non-cash equity compensation expense
—
—
25
468
472
472
LESS:
Interest income
30
26
55
62
35
39
Amortization of below-market coal sales contracts
—
—
771
1,955
1,705
6,261
Gain from purchase of business
—
—
—
—
3,823
3,823
Adjusted EBITDA
$
17,170
$
7,832
$
9,145
$
20,349
$
50,799
$
39,016
(3)
Maintenance capital expenditures
    are cash expenditures made to maintain or replace, including
    over the long term, our operating capacity, asset base or
    operating income. Examples of maintenance capital expenditures
    include capital expenditures associated with the replacement of
    equipment and coal reserves, whether through the expansion of an
    existing mine or the acquisition or development of new reserves,
    to the extent such expenditures are incurred to maintain our
    operating capacity, asset base or operating income.
    Historically, we have not made a distinction between maintenance
    capital expenditures and other capital expenditures. For
    purposes of this presentation, however, we have evaluated our
    historical capital expenditures to estimate which of them would
    have been classified as maintenance capital expenditures in
    accordance with our partnership agreement at the time they were
    made. The amounts shown reflect our estimates based on that
    evaluation.
(4)
The selected financial data for the
    year ended December 31, 2005 are derived from the audited
    historical consolidated balance sheet of our accounting
    predecessor and wholly owned subsidiary, Oxford Mining Company,
    that is not included in this prospectus. All other financial
    data for 2005 that would be comparable to the selected financial
    data for the years ended December 31, 2006, 2007, 2008 and
    2009 is not available because we adopted new accounting
70
Table of Contents
policies in 2006 after electronic
    data for 2005 was purged to conserve limited electronic data
    resources. The manual accounting data that we retained is
    incomplete and we cannot prepare the comparable selected
    historical financial data for 2005 without unreasonable time,
    expense and delay. In addition, significant assumptions would be
    required to reclassify the operations of certain non-core
    businesses that we disposed of in 2005. These non-core
    businesses were a small percentage of our 2005 revenues. Due to
    the significant assumptions needed to reclassify discontinued
    operations, the similarity in business operations and the age of
    this information, we believe that the inclusion of this
    information would not be materially additive to an
    investor's understanding of our current business.
(5)
Represents our coal sales divided
    by total tons of coal sold.
(6)
Represents our cost of coal sales
    (excluding DD&A) divided by the tons of coal we produce.
(7)
Represents the cost of purchased
    coal divided by the tons of coal purchased.
71
Table of Contents
MANAGEMENT'S
    DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion of the financial
    condition and results of operations of Oxford Resource Partners,
    LP and its subsidiaries in conjunction with the historical
    consolidated financial statements of Oxford Resource Partners,
    LP, the historical consolidated financial statements of our
    accounting predecessor and wholly owned subsidiary, Oxford
    Mining Company, and the unaudited pro forma consolidated
    financial statements of Oxford Resource Partners, LP included
    elsewhere in this prospectus. Among other things, those
    historical and pro forma consolidated financial statements and
    the notes related to those statements include more detailed
    information regarding the basis of presentation for the
    following information.
Overview
We are a low cost producer of high value steam coal, and we are
    the largest producer of surface mined coal in Ohio. Our reserves
    and operations are strategically located in Northern Appalachia
    and the Illinois Basin to serve our primary market area of
    Illinois, Indiana, Kentucky, Ohio, Pennsylvania and West
    Virginia. We market our coal primarily to large utilities with
    coal-fired, base-load scrubbed power plants under long-term coal
    sales contracts. We currently have long-term coal sales
    contracts in place for 2010, 2011, 2012 and 2013 that represent
    97.2%, 93.0%, 71.4% and 39.7%, respectively, of our 2010
    estimated coal sales of 8.5 million tons.
We currently have 19 active surface mines that are managed as
    eight mining complexes. During the fourth quarter of 2009, our
    largest mine represented 12.5% of our coal production. This
    diversity reduces the risk that operational issues at any one
    mine will have a material impact on our business or our results
    of operations. Consistent coal quality across many of our mines
    and the mobility of our equipment fleet allows us to reliably
    serve our customers from multiple mining complexes while
    optimizing our mining plan. Our operations also include two
    river terminals, strategically located in eastern Ohio and
    western Kentucky, that further enhance our ability to supply
    coal to our customers with river access from multiple mines.
We produced 5.8 million tons of coal during 2009, including
    0.4 million tons produced from the reserves we acquired in
    western Kentucky from Phoenix Coal on September 30, 2009.
    As a result of this acquisition, our coal production during the
    fourth quarter of 2009 was 1.8 million tons, or
    7.2 million tons on an annualized basis. During 2009, we
    sold 6.3 million tons of coal, including 0.5 million
    tons of purchased coal. We purchase coal in the open market and
    under contracts to satisfy a portion of our sales commitments.
As of December 31, 2009, we controlled 91.6 million
    tons of proven and probable coal reserves, of which
    68.6 million tons were associated with our surface mining
    operations and the remaining 23.0 million tons consisted of
    underground coal reserves that we have subleased to a third
    party in exchange for an overriding royalty. Historically, we
    have been successful at replacing the reserves depleted by our
    annual production and growing our reserve base by acquiring
    reserves with low operational, geologic and regulatory risks and
    that were located near our mining operations or that otherwise
    had the potential to serve our primary market area. Over the
    last five years, we have produced 23.6 million tons of coal
    and acquired 52.9 million tons of proven and probable coal
    reserves, including 24.6 million tons of coal reserves that
    we acquired in connection with the Phoenix Coal acquisition.
For the year ended December 31, 2009, we generated revenues
    of approximately $293.8 million, net income attributable to
    our unitholders of approximately $23.5 million and Adjusted
    EBITDA of approximately $50.8 million. Please read
    "Selected Historical and Pro Forma Consolidated Financial
    and Operating Data" for our definition of Adjusted EBITDA
    and a reconciliation of Adjusted EBITDA to net income (loss)
    attributable to our unitholders.
Evaluating
    Our Results of Operations
We evaluate our results of operations based on several key
    measures:
•
our coal production, sales volume and average sales prices,
    which drive our coal sales revenue;
72
Table of Contents
•
our cost of coal sales;
•
our cost of purchased coal; and
•
our Adjusted EBITDA, a non-GAAP financial measure.
Coal
    Production, Sales Volume and Sales Prices
We evaluate our operations based on the volume of coal we
    produce, the volume of coal we sell and the prices we receive
    for our coal. Because we sell substantially all of our coal
    under long-term coal sales contracts, our coal production, sales
    volume and sales prices are largely dependent upon the terms of
    those contracts. The volume of coal we sell is also a function
    of the productive capacity of our mining complexes, the amount
    of coal we purchase and changes in inventory levels. Please read
    "— Cost of Purchased Coal" for more
    information regarding our purchased coal.
Our long-term coal sales contracts typically provide for a fixed
    price, or a schedule of fixed prices, over the contract term.
    Two of our long-term coal sales contracts have price re-openers
    that provide for a market-based adjustment to the initial price
    every three years. These contracts will terminate if we cannot
    agree upon a market-based price with the customer. In addition,
    most of our long-term coal sales contracts have full or partial
    cost pass through or inflation adjustment provisions. Cost pass
    through provisions typically provide for increases in our sales
    prices in rising operating cost environments and for decreases
    in declining operating cost environments. Inflation adjustment
    provisions typically provide some protection in rising operating
    cost environments.
We evaluate the price we receive for our coal on an average
    sales price per ton basis. Our average sales price per ton
    represents our coal sales revenue divided by total tons of coal
    sold. The following table provides operational data with respect
    to our coal production, coal sales volume and average sales
    prices per ton for the periods indicated:
Non-GAAP
Year Ended
Year Ended
Combined
    2007
(1)
December 31, 2008
December 31, 2009
(tons in thousands)
Tons of coal produced
4,327
5,089
5,846
Tons of coal purchased
946
434
530
Tons of coal sold
5,271
5,528
6,311
Tons sold under long-term
    contracts
(2)
98.3
%
93.8
%
97.8
%
Average sales price per ton
$
30.00
$
35.04
$
40.27
(1)
Please read "— Results of Operations —
    Factors Affecting the Comparability of Our Results of
    Operations" for more information about the "non-GAAP
    combined 2007" presentation.
(2)
Represents the percentage of the tons of coal we sold that were
    delivered under long-term coal sales contracts.
Cost
    of Coal Sales
We evaluate our cost of coal sales, which excludes the cost of
    purchased coal, on a cost per ton basis. Our cost of coal sales
    per ton produced represents our production costs divided by the
    tons of coal we produce. Our production costs include labor,
    fuel, oil, explosives, operating lease expenses, repairs and
    maintenance and all other costs that are directly related to our
    mining operations other than the cost of purchased coal, cost of
    transportation and depreciation, depletion and amortization, or
    DD&A. Our production costs also exclude any indirect costs,
    such as SG&A expenses. Our production costs do not take
    into account the effects of any of the inflation adjustment or
    cost pass through provisions in our long-term coal sales
    contracts, as those provisions result in an adjustment to our
    coal sales price.
73
Table of Contents
The following table provides summary information for the dates
    indicated relating to our cost of coal sales per ton produced:
Non-GAAP
Year Ended
Year Ended
Combined
    2007
(1)
December 31, 2008
December 31, 2009
(tons in thousands)
Average sales price per ton
$
30.00
$
35.04
$
40.27
Cost of coal sales per ton
$
25.69
$
29.75
$
29.20
Tons of coal produced
4,327
5,089
5,846
(1)
Please read "— Results of Operations —
    Factors Affecting the Comparability of Our Results of
    Operations" for more information about the "non-GAAP
    combined 2007" presentation.
We use a substantial amount of diesel fuel in our mining
    operations. To mitigate our exposure to fluctuations in the
    price for diesel fuel we have entered into fixed price forward
    contracts for future delivery of diesel fuel for a portion of
    our requirements. During 2009, 54.4% of the 16.7 million
    gallons of diesel fuel we purchased was delivered under fixed
    price forward contracts. In addition, approximately 72.7% of the
    tons we delivered under our long-term coal sales contracts
    during 2009 were subject to full or partial cost pass through
    provisions for diesel fuel which provide additional protection
    for a portion of the increase in fuel costs.
Cost
    of Purchased Coal
We purchase coal from third parties to fulfill a small portion
    of our obligations under our long-term coal sales contracts and,
    in certain cases, to meet customer quality specifications. In
    connection with the Phoenix Coal acquisition, we assumed a
    long-term coal purchase contract that had favorable pricing
    terms relative to our production costs. Under this contract we
    are obligated to purchase 0.6 million tons of coal in 2010
    and 0.4 million tons of coal each year thereafter until the
    coal reserves covered by the contract are depleted. Based on the
    proven and probable coal reserves in place at December 31,
    2009, we expect this contract to continue beyond five years.
We evaluate our cost of purchased coal on a per ton basis. For
    the year ended December 31, 2009, we sold 0.5 million
    tons of purchased coal. The following table provides summary
    information for the dates indicated for our cost of purchased
    coal per ton and the tons of purchased coal:
Non-GAAP
Year Ended
Year Ended
Combined
    2007
(1)
December 31, 2008
December 31, 2009
(tons in thousands)
Average sales price per ton
$
30.00
$
35.04
$
40.27
Cost of purchased coal per ton
$
28.51
$
29.81
$
36.79
Tons of coal purchased
946
434
530
(1)
Please read "— Results of Operations —
    Factors Affecting the Comparability of Our Results of
    Operations" for more information about the "non-GAAP
    combined 2007" presentation.
Adjusted
    EBITDA
Adjusted EBITDA represents net income (loss) attributable to our
    unitholders before interest, taxes, DD&A, gain from
    purchase of a business, amortization of below-market coal sales
    contracts and non-cash equity compensation expense. Although
    Adjusted EBITDA is not a measure of performance calculated in
    accordance with GAAP, our management believes that it is useful
    in evaluating our financial performance and our compliance with
    our existing credit facility. Because not all companies
    calculate Adjusted EBITDA identically, our calculation may not
    be comparable to similarly titled measures of other companies.
    Please read "— Summary" for reconciliations
    of Adjusted EBITDA to net income (loss) attributable to our
    unitholders for each of the periods indicated.
74
Table of Contents
Factors
    that Impact Our Business
For the past three years over 90% of our coal sales were made
    under long-term coal sales contracts and we intend to continue
    to enter into long-term coal sales contracts for substantially
    all of our annual coal production. We believe our long-term coal
    sales contracts reduce our exposure to fluctuations in the spot
    price for coal and provide us with a reliable and stable revenue
    base. Our long-term coal sales contracts also allow us to
    partially mitigate our exposure to rising costs to the extent
    those contracts have full or partial cost pass through
    provisions or inflation adjustment provisions.
For 2010, 2011, 2012 and 2013, we currently have long-term coal
    sales contracts that represent 97.2%, 93.0%, 71.4% and 39.7%,
    respectively, of our 2010 estimated coal sales of
    8.5 million tons. During 2010, 2011, 2012 and 2013, we have
    committed to deliver 8.2 million tons, 7.9 million
    tons, 6.1 million tons and 3.4 million tons of coal,
    respectively, under long-term coal sales contracts. These
    amounts include contracts with re-openers as described below. In
    addition, one of our long-term coal sales contracts that ends in
    2012 can be extended by the customer for two additional
    three-year terms. If this customer elects to extend this
    contract, we will be committed to deliver an additional
    2.0 million tons in 2013, and our 2013 coal sales
    under long-term coal sales contracts, as a percentage of 2010
    estimated coal sales, would increase to 63.3%.
The terms of our coal sales contracts result from competitive
    bidding and negotiations with customers. As a result, the terms
    of these agreements — including price re-openers, coal
    quality requirements, quantity parameters, permitted sources of
    supply, effects of future regulatory changes, extension options,
    force majeure, termination and assignment provisions —
    vary by customer. However, most of our long-term coal sales
    contracts have full or partial cost pass through provisions or
    inflation adjustment provisions. For 2010, 2011, 2012 and 2013,
    61%, 72%, 80% and 100% of the coal, respectively, that we have
    committed to deliver under our long-term coal sales contracts
    are subject to full or partial cost pass through or inflation
    adjustment provisions. Cost pass through provisions increase or
    decrease our coal sales price for all or a specified percentage
    of changes in the cost of fuel, explosives and, in certain
    cases, labor. Inflation adjustment provisions adjust the initial
    contract price over the term of the contract either by a
    specific percentage or a percentage determined by reference to
    various inflation related indices.
Two of our long-term coal sales contracts have price re-openers
    that provide for market-based adjustments to the initial price
    every three years. These contracts will terminate if we cannot
    agree upon a market-based price with the customer. For 2011,
    2012 and 2013, 0.4 million tons, 0.4 million tons and
    0.6 million tons of coal, respectively, that we have
    committed to deliver under our long-term coal sales contracts
    are subject to price re-opener provisions.
Certain of our long-term coal sales contracts give the customer
    the option to elect to purchase additional tons in the future at
    a fixed price. Our long-term coal sales contracts that contain
    these option tons typically require the customer to provide us
    with six months advance notice of an election for option tons.
    For 2010, 2011 and 2012, we have outstanding option tons of
    0.7 million, 1.0 million and 0.7 million,
    respectively. If our customers do elect to receive these option
    tons, we believe we will have the operating flexibility to meet
    these requirements through increased production.
We believe the other key factors that influence our business
    are: (i) demand for coal, (ii) demand for electricity,
    (iii) economic conditions, (iv) the quantity and
    quality of coal available from competitors, (v) competition
    for production of electricity from non-coal sources,
    (vi) domestic air emission standards and the ability of
    coal-fired power plants to meet these standards,
    (vii) legislative, regulatory and judicial developments,
    including delays, challenges to, and difficulties in acquiring,
    maintaining or renewing necessary permits or mineral or surface
    rights, (viii) market price fluctuations for sulfur dioxide
    emission allowances and (ix) our ability to meet
    governmental financial security requirements associated with
    mining and reclamation activities.
For additional information regarding some of the risks and
    uncertainties that affect our business and the industry in which
    we operate, please read "Risk Factors."
75
Table of Contents
Recent
    Trends and Economic Factors Affecting the Coal
    Industry
Coal consumption and production in the United States have been
    driven in recent periods by several market dynamics and trends.
    The recent global economic downturn has negatively impacted coal
    demand in the short-term, but long-term projections for coal
    demand remain positive. Please read "The Coal
    Industry — Industry Trends" for the recent trends
    and economic factors affecting the coal industry.
Results
    of Operations
Factors
    Affecting the Comparability of Our Results of
    Operations
The comparability of our results of operations is impacted by
    (i) the Phoenix Coal acquisition, (ii) an amendment to
    a long-term coal sales contract in December 2008 and
    (iii) the application of purchase accounting to our
    accounting predecessor's financial statements in August
    2007.
We acquired all of Phoenix Coal's active surface mining
    operations on September 30, 2009. This acquisition
    increased our coal production for the fourth quarter of 2009 by
    29%, or 0.4 million tons (1.6 million tons on an
    annualized basis).
In December 2008, we and one of our major customers agreed to
    amend a long-term coal sales contract. As part of this
    amendment, we agreed to give this customer two additional
    three-year term extension options with market-based price
    adjustments for each extension. In exchange, we received a
    substantial increase in the price per ton of coal under the
    contract along with inflation adjusters and certain cost pass
    through provisions for the remainder of the contract term that
    expires at the end of 2012. The 14.9% increase in our average
    sales price per ton in 2009 as compared to 2008 is primarily due
    to the amendment of this contract.
Oxford Mining Company, our wholly owned subsidiary, was
    contributed to us on August 24, 2007. Because Oxford Mining
    Company is our accounting predecessor, the financial statements
    we have presented for the periods that ended before
    August 24, 2007 are the financial statements of Oxford
    Mining Company. In addition, because Oxford Mining Company is
    now our wholly owned subsidiary, our financial statements that
    begin on or after August 24, 2007 include Oxford Mining
    Company on a consolidated basis, as required by GAAP. The
    contribution of Oxford Mining Company to us on August 24,
    2007 resulted in a change of control that triggered a new
    fair-value basis of accounting for Oxford Mining Company on that
    date. We have analyzed the impact of that transaction on our
    consolidated statements of operations and those of our
    accounting predecessor.
The operations of the predecessor and successor in 2007 were
    substantially the same as all assets and liabilities were
    contributed with the exception of the predecessor's debt,
    which was paid in full, and certain equipment operating leases,
    which were paid off. Therefore, the change in control had a
    limited impact on the comparability of our 2007 results of
    operations. The most notable changes that resulted from the
    change in control are set forth below.
•
As part of the contribution, we bought out several equipment
    operating leases, which had the impact of reducing lease expense
    within cost of coal sales and increasing depreciation expense
    during the periods after the change in control.
•
The fair value basis of accounting had the effect of increasing
    the asset value of certain property, plant and equipment as well
    as coal reserves, which further increased DD&A expenses
    during the periods after the change in control.
•
In connection with the contribution, Oxford Mining Company
    entered into an advisory services agreement with certain
    affiliates of AIM Oxford, which resulted in higher SG&A
    expenses during the periods after the change in control.
•
As a result of the contribution, total borrowings increased,
    which resulted in higher interest charges and amortization of
    deferred financing fees within interest expense during the
    periods after the change in control.
76
Table of Contents
•
As part of the accounting for the contribution, we established a
    provision for below-market coal sales contracts, which increased
    our revenues during the periods after the change in control.
Based on our analysis, we concluded that the non-GAAP combined
    presentation provides for a more meaningful comparison of our
    2007 results of operations to other periods. For comparative
    purposes, Oxford Mining Company's operating results for the
    period from January 1, 2007 to August 23, 2007 and our
    operating results for the period from August 24, 2007 to
    December 31, 2007 have been combined and are referred to as
    "non-GAAP combined 2007."
Summary
The following table presents certain of our historical
    consolidated financial data and that of our accounting
    predecessor, Oxford Mining Company, for the periods indicated.
    The following table should be read in conjunction with
    "Selected Historical and Pro Forma Consolidated Financial
    and Operating Data."
Adjusted EBITDA is a non-GAAP financial measure that we use in
    analyzing the financial performance of our business as it is an
    important supplemental measure of our performance. Adjusted
    EBITDA represents net income (loss) attributable to our
    unitholders before interest, taxes, DD&A, gain from
    purchase of a business, amortization of below-market coal sales
    contracts and non-cash equity compensation expense. This measure
    is not calculated or presented in accordance with GAAP. We
    explain this measure below and reconcile it to net income (loss)
    attributable to our unitholders, its most comparable measure
    established in accordance with GAAP.
77
Table of Contents
Oxford Mining
Company
(Predecessor)
Oxford Resource Partners, LP
Period from
Period from
Non-GAAP
Year Ended
Year Ended
January 1, 2007 to
August 24, 2007 to
Combined 2007
December 31,
December 31,
August 23, 2007
December 31, 2007
(unaudited)
2008
2009
(in thousands)
Statement of Operations Data:
Revenues:
Coal sales
$
96,799
$
61,324
$
158,123
$
193,699
$
254,171
Transportation revenue
18,083
10,204
28,287
31,839
32,490
Royalty and non-coal revenue
3,267
1,407
4,674
4,951
7,183
Total revenues
118,149
72,935
191,084
230,489
293,844
Costs and expenses:
Cost of coal sales (excluding DD&A, shown separately)
70,415
40,721
111,136
151,421
170,698
Cost of purchased coal
17,494
9,468
26,962
12,925
19,487
Cost of transportation
18,083
10,204
28,287
31,839
32,490
Depreciation, depletion, and amortization
9,025
4,926
13,951
16,660
25,902
Selling, general and administrative expenses
3,643
2,114
5,757
9,577
13,242
Total costs and expenses
118,660
67,433
186,093
222,422
261,819
Income from operations
(511
)
5,502
4,991
8,067
32,025
Interest income
26
55
81
62
35
Interest expense
(2,386
)
(3,498
)
(5,884
)
(7,720
)
(6,484
)
Gain from purchase of
    business
(1)
—
—
—
—
3,823
Net income (loss)
(2,871
)
2,059
(812
)
409
29,399
Net income attributable to noncontrolling interest
(682
)
(537
)
(1,219
)
(2,891
)
(5,895
)
Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
$
(3,553
)
$
1,522
$
(2,031
)
$
(2,482
)
$
23,504
Other Financial Data:
Adjusted
    EBITDA
(2)
$
7,832
$
9,145
$
16,977
$
20,349
$
50,799
(1)
On September 30, 2009, we
    acquired all of the active western Kentucky surface mining
    operations of Phoenix Coal. The purchase price of this
    acquisition was less than the fair value of the net assets and
    liabilities we acquired. We recorded this difference as a gain
    of $3.8 million for the year ending December 31, 2009.
(2)
Adjusted EBITDA is used as a
    supplemental financial measure by management and by external
    users of our financial statements, such as investors and
    lenders, to assess:
•
our financial performance without
    regard to financing methods, capital structure or income taxes;
•
our ability to generate cash
    sufficient to pay interest on our indebtedness and to make
    distributions to our unitholders and our general partner;
•
our compliance with certain
    financial covenants included in our existing credit facility; and
•
our ability to fund capital
    expenditure projects from operating cash flow.
78
Table of Contents
Adjusted EBITDA should not be considered an alternative to net
    income (loss) attributable to our unitholders, income from
    operations, cash flows from operating activities or any other
    measure of performance presented in accordance with GAAP.
    Adjusted EBITDA excludes some, but not all, items that affect
    net income (loss) attributable to our unitholders, income from
    operations and cash flows, and these measures may vary among
    other companies. Therefore, Adjusted EBITDA as presented below
    may not be comparable to similarly titled measures of other
    companies. The following table presents a reconciliation of
    Adjusted EBITDA to net income (loss) attributable to our
    unitholders for each of the periods indicated:
Oxford Mining
Company
(Predecessor)
Period from
Oxford Resource Partners, LP
January 1, 2007
Period from
Non-GAAP
Year Ended
Year Ended
to August 23,
August 24, 2007 to
Combined
December 31,
December 31,
2007
December 31, 2007
2007
2008
2009
(in thousands)
Reconciliation of Adjusted EBITDA to net income (loss)
    attributable to Oxford Resource Partners, LP unitholders:
Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
$
(3,553
)
$
1,522
$
(2,031
)
$
(2,482
)
$
23,504
PLUS:
Depreciation, depletion, and amortization
9,025
4,926
13,951
16,660
25,902
Interest expense
2,386
3,498
5,884
7,720
6,484
Non-cash equity compensation expense
—
25
25
468
472
LESS:
Interest income
26
55
81
62
35
Amortization of below-market coal sales contracts
—
771
771
1,955
1,705
Gain from purchase of business
—
—
—
—
3,823
Adjusted EBITDA
$
7,832
$
9,145
$
16,977
$
20,349
$
50,799
Year
    Ended December 31, 2009 Compared to Year Ended
    December 31, 2008
Overview.
Our coal production increased 14.9%
    to 5.8 million tons in 2009 compared to 5.1 million
    tons in 2008. We sold 6.3 million tons of coal in 2009, an
    increase of 14.2% when compared to the 5.5 million tons we
    sold in 2008. Our average sales price per ton increased 14.9%,
    or $5.23 per ton, in 2009 when compared with 2008. Our total
    revenues for 2009 increased 27.5% to $293.8 million from
    $230.5 million in 2008. We generated net income
    attributable to our unitholders of approximately
    $23.5 million during 2009 as compared to net loss
    attributable to our unitholders of $2.5 million for 2008.
    Our Adjusted EBITDA increased 149.6% in 2009 to
    $50.8 million from $20.3 million in 2008.
Coal Production.
Our tons of coal produced
    increased 14.9% to 5.8 million tons in 2009 from
    5.1 million tons in 2008. This increase was primarily the
    result of increased coal production in the fourth quarter of
    2009 due to the Phoenix Coal acquisition of 0.4 million
    tons and higher production at certain of our other mining
    complexes. We increased our coal production for 2009 to match
    the increase in the tons that we were committed to deliver under
    our long-term coal sales contracts during 2009.
Sales Volume.
Our tons of coal sold increased
    14.2% to 6.3 million tons in 2009 from 5.5 million
    tons in 2008. The increase in the tons sold in 2009 was
    primarily attributable to the 0.6 million tons of coal we sold
    during the fourth quarter of 2009 as a result of the Phoenix
    Coal acquisition and an increase in the tons we were committed
    to deliver under our long-term coal sales contracts in 2009 as
    compared with 2008.
79
Table of Contents
Average Sales Price Per Ton.
Our average sales
    price per ton increased 14.9% to $40.27 in 2009 from $35.04 in
    2008. This increase was primarily attributable to the amendment
    of a long-term coal sales contract with a major customer in
    December 2008. As part of this amendment, we agreed to give this
    customer two additional three-year term extension options with
    market-based price adjustments for each extension. In exchange,
    we received a substantial increase in the price per ton under
    the contract along with inflation adjusters and certain cost
    pass through provisions through the remainder of the contract
    term that expires at the end of 2012.
Coal Sales Revenue.
Our coal sales for 2009
    increased by $60.5 million, or 31.2%, over 2008. The
    majority of the increase, or $33.5 million, was
    attributable to the 14.9% increase in our average sales price
    per ton for 2009 as compared to 2008. In addition,
    $26.9 million of this increase was attributable to the
    14.2% increase in our tons sold for 2009 as compared to 2008.
Royalty and Non-Coal Revenue.
In June 2005, we
    sold our underground mining operations at the Tusky mining
    complex and subleased our related underground coal reserves to
    the purchaser in exchange for an overriding royalty. Our
    overriding royalty is equal to a percentage of the sales price
    our sublessee receives for the coal produced from our
    underground coal reserves. Our sublessee is also obligated to
    pay the tonnage based royalty that we owe to the lessor of our
    underground coal reserves. Our royalty and non-coal revenue
    includes our overriding royalty revenue, revenue from the sale
    of limestone that we recover in connection with our coal mining
    operations and various fees we receive for performing services
    for others. Our royalty and non-coal revenue increased to
    $7.2 million in 2009 from $5.0 million in 2008. This
    increase was primarily attributable to increases in our royalty
    revenue from our underground coal reserves of $3.2 million
    partially offset by decreases in other revenue of $1.0 million.
    During 2009, our royalty revenue from our underground coal
    reserves increased to $4.5 million from $1.3 million
    in 2008. This increase was attributable to significant increases
    in coal production and sales to third parties by the sublessee
    of our underground coal reserves. In 2009, our sublessee sold
    its underground coal production to third parties for the full
    year as compared to 2008 when it sold its production to third
    parties for approximately six months.
Cost of Coal Sales (Excluding DD&A).
Cost
    of coal sales (excluding DD&A) increased 12.7% in 2009 to
    $170.7 million from $151.4 million in 2008. This
    increase was primarily attributable to the increase in our tons
    of coal produced, partially offset by lower operating costs per
    ton. During 2009, our cost of coal sales per ton produced
    decreased 1.9% primarily as a result of lower fuel, oil and
    explosives prices partially offset by higher operating lease
    expenses and higher contract labor costs. Our diesel fuel cost
    per ton of coal produced decreased from $8.47 per ton in 2008 to
    $6.56 per ton in 2009. Our motor and hydraulic oil cost per ton
    decreased from $1.17 per ton in 2008 to $0.85 per ton in 2009,
    and our explosives cost per ton decreased from $3.44 per ton in
    2008 to $3.24 per ton in 2009. Our operating lease expenses per
    ton increased to $0.79 per ton in 2009 from $0.31 per ton in
    2008 as we expanded our fleet of large equipment at our Cadiz
    and Harrison mining complexes. In addition, our contract labor
    costs per ton increased to $1.44 per ton in 2009 from $0.62 per
    ton in 2008 as a result of a full year of the costs associated
    with a highwall mining contractor that we retained in July 2008.
Cost of Purchased Coal.
Cost of purchased coal
    increased 50.8% in 2009 to $19.5 million from
    $12.9 million in 2008. This increase was primarily
    attributable to a $6.98 per ton increase in the average cost of
    purchased coal per ton and a 0.1 million ton increase in
    the volume of coal purchased during 2009 as compared to 2008.
    Our average cost of purchased coal per ton increased by 23.4% to
    $36.79 per ton in 2009 from $29.81 per ton in 2008. During the
    first quarter of 2009, we purchased a higher percentage of our
    purchased coal on the spot market in order to meet our coal
    sales obligations. For the fourth quarter of 2009, we purchased
    a higher percentage of our purchased coal under a long-term coal
    purchase contract. During 2009 the volume of coal we purchased
    increased by 0.1 million tons over 2008 primarily as a
    result of one quarter of coal purchases under the long-term coal
    purchase contract that we assumed in connection with the Phoenix
    Coal acquisition.
Depreciation, Depletion and
    Amortization.
DD&A expense for 2009 was
    $25.9 million as compared to $16.7 million for 2008,
    an increase of $9.2 million. Depreciation expense
    attributable to equipment upgrades that occurred during 2009
    accounted for $7.6 million of this increase and the assets
    we acquired in the Phoenix Coal acquisition increased our
    depreciation expense by $1.8 million.
80
Table of Contents
Selling, General and Administrative
    Expenses.
SG&A expenses for 2009 were
    $13.2 million as compared to $9.6 million for 2008, an
    increase of $3.6 million. The increase in SG&A
    expenses was primarily due to increased headcount and expenses
    in our accounting and administrative departments in anticipation
    of becoming a publicly traded partnership, as well as one-time
    costs of $1.6 million associated with the Phoenix Coal
    transaction and $1.0 million of legal fees incurred in
    renegotiating our existing credit facility.
Transportation Revenue and Expenses.
Our
    transportation expenses represent the cost to transport our coal
    by truck or rail from our mines to our river terminals, our rail
    loading facilities and our customers. Our long-term coal sales
    contracts have these transportation costs built into the price
    of our coal. Our transportation revenue reflects the portion of
    our total revenues that is attributable to reimbursements for
    transportation expenses. Our transportation revenue fluctuates
    based on a number of factors, including the volume of coal we
    transport by truck or rail under those contracts and the related
    transportation costs. The 2.0% increase in transportation
    revenue in 2009 as compared to 2008 was a function of the
    increase in tons of coal sold partially offset by lower trucking
    rates.
Interest Expense.
Interest expense for 2009
    was $6.5 million as compared to $7.7 million for 2008,
    a decrease of $1.2 million or 16.0%. The decrease in
    interest expense was primarily attributable to lower effective
    weighted average interest rates in 2009 under our existing
    credit facility as compared to 2008 and a gain of
    $1.7 million on our interest rate swap in 2009. These
    decreases were partially offset by an increase of
    $1.3 million in interest expense due to the write off of
    capitalized financing costs as a result of an amendment in 2009
    to our existing credit facility.
Gain from Purchase of Business.
On
    September 30, 2009, we acquired all of the active surface
    mining operations of Phoenix Coal. The purchase price of this
    acquisition was less than the fair value of the net assets and
    liabilities we acquired. We recorded this difference as a
    one-time gain of $3.8 million for 2009.
Net Income Attributable to Noncontrolling
    Interest.
In 2007, we entered into a joint
    venture, Harrison Resources, with CONSOL Energy to mine surface
    coal reserves purchased from CONSOL Energy. We own 51% of
    Harrison Resources and CONSOL Energy owns the remaining 49%
    indirectly through one of its subsidiaries. We manage all of the
    operations of, and perform all of the contract mining and
    marketing services for, Harrison Resources. Net income
    attributable to noncontrolling interest relates to the 49% of
    Harrison Resources that we do not own. For the year ended
    December 31, 2009, net income attributable to the
    noncontrolling interest was $5.9 million as compared to
    $2.9 million for 2008. This increase of $3.0 million
    was primarily attributable to an increase of 64% in tons of coal
    sold by Harrison Resources in 2009 compared to 2008, as well as
    to increased sales prices.
Year
    Ended December 31, 2008 Compared to Non-GAAP Combined
    2007
Overview.
Our coal production increased 17.6%
    to 5.1 million tons in 2008 compared to 4.3 million
    tons in non-GAAP combined 2007. We sold 5.5 million tons of
    coal in 2008, an increase of 4.9% when compared to the
    5.3 million tons we sold in non-GAAP combined 2007. Our
    average sales price per ton increased 16.8%, or $5.04 per ton,
    in 2008 when compared with non-GAAP combined 2007. Our total
    revenues for 2008 increased 20.6% to $230.5 million from
    $191.1 million in non-GAAP combined 2007. We had a net loss
    attributable to our unitholders of approximately
    $2.5 million during 2008 as compared to a net loss
    attributable to our unitholders of $2.0 million for
    non-GAAP combined 2007. Our Adjusted EBITDA increased 19.9% in
    2008 to $20.3 million from $17.0 million in non-GAAP
    combined 2007.
Coal Production.
Our tons of coal produced
    increased 17.6% to 5.1 million tons in 2008 from
    4.3 million tons in non-GAAP combined 2007. This increase
    was primarily due to higher production in 2008 from reserves
    acquired during non-GAAP combined 2007 at our Belmont and Cadiz
    mining complexes and the additional reserves acquired by
    Harrison Resources from CONSOL during 2008. We increased our
    production in 2008 to meet the requirements of a new long-term
    coal sales contract which started in 2008.
Sales Volume.
Our tons of coal sold increased
    4.9% to 5.5 million tons in 2008 from 5.3 million tons
    in non-GAAP combined 2007 primarily as a result of an increase
    of 0.8 million tons in coal production partially offset by a
    decrease of 0.5 million tons in purchased coal.
81
Table of Contents
Average Sales Price Per Ton.
Our average sales
    price per ton increased 16.8% to $35.04 in 2008 from $30.00 in
    non-GAAP combined 2007. This increase was due to the replacement
    of expiring long-term coal sales contracts with higher priced
    long-term coal sales contracts.
Coal Sales Revenue.
Our coal sales for 2008
    increased by $35.6 million, or 22.5%, over non-GAAP
    combined 2007. The majority of the increase, or
    $27.9 million, was attributable to the 16.8% increase in
    our average sales price per ton for 2008 as compared to non-GAAP
    combined 2007. In addition, $7.7 million of this increase
    was attributable to the 4.9% increase in our tons of coal sold
    for 2008 as compared to non-GAAP combined 2007.
Royalty and Non-Coal Revenue.
We began
    receiving royalty revenues on our underground coal reserves in
    June 2008 as the sublessee began selling coal produced from our
    underground coal reserves directly to third parties. Before June
    2008 we purchased, processed and sold all of the coal produced
    by our sublessee from our underground coal reserves and, as a
    result, we did not receive an overriding royalty.
Cost of Coal Sales (Excluding DD&A).
Cost
    of coal sales (excluding DD&A) increased 36.2% in 2008 to
    $151.4 million from $111.1 million in non-GAAP
    combined 2007. This increase was primarily attributable to the
    increase in our tons of coal produced and higher operating
    costs. During 2008, our cost of coal sales per ton produced
    increased 15.8% primarily as a result of higher fuel costs as
    compared to non-GAAP combined 2007. Our diesel fuel cost per ton
    of coal produced increased to $8.47 per ton in 2008 from $6.33
    per ton in non-GAAP combined 2007.
Cost of Purchased Coal.
Cost of purchased coal
    decreased 52.1% in 2008 to $12.9 million from
    $27.0 million in non-GAAP combined 2007. This decrease was
    primarily attributable to a 0.5 million ton decrease in the
    volume of coal we purchased during 2008 as compared to non-GAAP
    combined 2007 partially offset by the $1.30 increase in the
    average cost of purchased coal per ton in 2008 as compared to
    non-GAAP combined 2007. The decrease in the volume of purchased
    coal was primarily due to the discontinuation of coal purchases
    from the sublessee of our underground coal reserves in June
    2008. Our average cost of purchased coal per ton increased by
    4.3% to $29.81 per ton in 2008 from $28.51 per ton in non-GAAP
    combined 2007.
Depreciation, Depletion and
    Amortization.
DD&A expense for 2008 was
    $16.7 million as compared to $14.0 million for
    non-GAAP combined 2007, an increase of $2.7 million. This
    increase was primarily the result of a full year of depreciation
    on the higher asset values that resulted from the new asset
    basis for Oxford Mining Company due to the change of control
    that occurred on August 24, 2007. Because a new asset basis
    can inhibit meaningful comparison of historical results before
    and after the change of control, DD&A expense for non-GAAP
    combined 2007 is not comparable to 2008.
Selling, General and Administrative
    Expenses.
SG&A expenses for 2008 were
    $9.6 million as compared to $5.8 million for non-GAAP
    combined 2007, an increase of $3.8 million. The increase in
    SG&A expenses was primarily due to increases in accounting
    and administrative personnel expenses of $1.3 million,
    increases in professional fees of $1.5 million and the
    one-time write off of costs associated with an acquisition that
    we did not complete of $0.4 million.
Transportation Revenue and Expenses.
The 12.6%
    increase in transportation revenue in 2008 as compared to
    non-GAAP combined 2007 was a function of the increase in tons of
    coal sold and higher trucking costs due to increased fuel prices
    in 2008.
Interest Expense.
Interest expense for 2008
    was $7.7 million as compared to $5.9 million for
    non-GAAP combined 2007, an increase of $1.8 million. This
    increase was primarily attributable to an increase in our
    weighted average interest rates and average outstanding balances
    under our existing credit facility during 2008 as compared to
    non-GAAP combined 2007.
Net Income Attributable to Noncontrolling
    Interest.
Net income attributable to the
    noncontrolling interest was $2.9 million for 2009 as
    compared to $1.2 million for non-GAAP combined 2007. This
    increase of $1.7 million was primarily attributable to an
    increase of 97% in tons sold by Harrison Resources in 2008
    compared to non-GAAP combined 2007 as well as increases in
    average sales prices.
82
Table of Contents
Liquidity
    and Capital Resources
Liquidity
Our business is capital intensive and requires substantial
    capital expenditures for purchasing, upgrading and maintaining
    equipment used in mining our reserves, as well as complying with
    applicable environmental laws and regulations. Our principal
    liquidity requirements are to finance current operations, fund
    capital expenditures, including acquisitions from time to time,
    service our debt and pay cash distributions to our unitholders.
    Our primary sources of liquidity to meet these needs have been
    cash generated by our operations, borrowings under our existing
    credit facility and contributions from our partners.
The principal indicators of our liquidity are our cash on hand
    and availability under our existing credit facility. As of
    December 31, 2009, our available liquidity was
    $10.7 million, including cash on hand of $3.4 million
    and $7.3 million available under our existing credit
    facility.
We believe that our expected sources of liquidity after this
    offering, which include our working capital, cash flows from
    operations, borrowing capacity under our new credit facility and
    future issuances of debt and equity securities, will be
    sufficient to meet our financial commitments, debt service
    obligations, contingencies and anticipated capital expenditures
    for the near term. However, we are subject to business and
    operational risks that could adversely affect our cash flows. A
    material decrease in our cash flows would likely produce a
    corollary adverse effect on our borrowing capacity.
Please read "— Capital Expenditures" for a
    further discussion on the impact of capital expenditures on
    liquidity.
Cash
    Flows
The following table reflects cash flows for the applicable
    periods:
Oxford Mining Company
(Predecessor)
Oxford Resource Partners, LP
January 1, 2007 to
August 24, 2007 to
Year Ended December 31,
August 23, 2007
December 31, 2007(1)
2008
2009
(in thousands)
Net cash provided by (used in):
Operating activities
$
17,634
$
(8,478
)
$
33,951
$
35,540
Investing activities
$
(16,619
)
$
(103,336
)
$
(23,901
)
$
(51,115
)
Financing activities
$
(234
)
$
111,274
$
4,494
$
3,762
(1)
Please read Note 1 to our
    historical consolidated financial statements included elsewhere
    in this prospectus.
Year Ended December 31, 2009 Compared to Year Ended
    December 31, 2008.
Net cash provided by
    operating activities was $35.5 million for 2009 as compared
    to $34.0 million for 2008. This $1.5 million increase
    was primarily due to the combined effects of the
    $26.0 million increase in net income (loss) attributable to
    our unitholders, the $9.2 million impact from the increase
    in DD&A expense, as well as higher other non-cash
    adjustments of $1.2 million, partially offset by a decrease
    in the cash provided by changes in assets and liabilities of
    $34.9 million.
Net cash used in investing activities was $51.1 million in
    2009 as compared to $23.9 million for 2008. This
    $27.2 million increase was primarily attributable to the
    $18.3 million we spent in connection with the Phoenix Coal
    acquisition as well as increased purchases of coal properties in
    2009 as compared to 2008.
Net cash provided by financing activities was $3.8 million
    for 2009 as compared to $4.5 million for 2008. This
    $0.7 million decrease was primarily attributable to
    increased distributions to the noncontrolling interest holder in
    Harrison Resources during 2009 compared to 2008.
Year Ended December 31, 2008 Compared to
    Non-GAAP Combined 2007.
Net cash provided by
    operating activities was $34.0 million for 2008 as compared
    to $9.2 million for non-GAAP combined 2007.
83
Table of Contents
This $24.8 million change was primarily due to a
    $22.1 million increase in cash provided by changes in
    assets and liabilities and an increase of $2.7 million
    associated with higher DD&A expense.
Our net cash provided by (used in) investing activities and
    financing activities for 2007 includes the impact of the
    transactions relating to the contribution of Oxford Mining
    Company to us in August 2007. Please read
    "— Results of Operations — Factors
    Affecting the Comparability of our Results of Operations,"
    and Note 1 to our historical consolidated financial
    statements included elsewhere in this prospectus.
Credit
    Facility
In connection with our initial public offering, we will pay off
    our existing credit facility and enter into a new credit
    facility that will include (i) a
    $      million revolver and
    (ii) a $      million term
    loan. The revolver and term loan will mature
    in           ,
    and borrowings will bear interest, at a variable rate per annum
    equal to the lesser of LIBOR or the Base Rate, as the case may
    be, plus the Applicable Margin (LIBOR, Base Rate and Applicable
    Margin will each be defined in the credit agreement that
    evidences our new credit facility). Under our new credit
    facility, in addition to the uses described in "Use of
    Proceeds," we expect that borrowings may be used for
    (i) the refinancing and repayment of certain existing
    indebtedness, (ii) working capital and other general
    partnership purposes and (iii) capital expenditures.
    Borrowings under our new credit facility will be secured by a
    first-priority lien on and security interest in substantially
    all of our assets. The credit agreement that evidences our new
    credit facility will contain customary covenants, including
    restrictions on our ability to incur additional indebtedness,
    make certain investments, loans or advances, make distributions
    to our unitholders, make dispositions or enter into sales and
    leasebacks, or enter into a merger or sale of our property or
    assets, including the sale or transfer of interests in our
    subsidiaries.
The events that constitute an Event of Default under our new
    credit agreement are expected to be customary for loans of this
    size and type.
Contractual
    Obligations
We have contractual obligations that are required to be settled
    in cash. The amounts of our contractual obligations as of
    December 31, 2009 were as follows:
Payments due by period
Less Than
More Than
Total
1 Year
1-3 Years
4-5 Years
5 Years
(in thousands)
Long-term debt
    obligations
(1)
$
105,507
$
5,591
$
99,916
$
—
$
—
Other long-term
    debt
(2)
5,435
3,642
1,783
10
—
Operating lease obligations
18,425
6,289
12,013
123
—
Fixed price diesel fuel purchase contracts
9,446
9,446
—
—
—
Long-term coal purchase
    contract
(3)
83,627
14,103
29,796
19,864
19,864
Total
$
222,440
$
39,071
$
143,508
$
19,997
$
19,864
(1)
Amounts relate to our existing
    credit facility that will be repaid in full in connection with
    this offering. Please read "Use of Proceeds." Assumes
    a current LIBOR of 1.0% plus the applicable margin, which
    remains constant for all periods.
(2)
Represents various notes payable
    with interest rates ranging from 4.6% to 9.25%.
(3)
We assumed a long-term coal
    purchase contract as a result of the Phoenix Coal acquisition.
    Please read Note 17 to our historical financial statements
    included elsewhere in this prospectus.
Capital
    Expenditures
Our mining operations require investments to expand, upgrade or
    enhance existing operations and to comply with environmental
    regulations. Our capital requirements primarily consist of
    maintenance capital expenditures and expansion capital
    expenditures. Maintenance capital expenditures are those capital
84
Table of Contents
expenditures required to maintain or replace, including over the
    long term, our operating capacity, asset base or operating
    income. Expansion capital expenditures are those capital
    expenditures made to increase our
long-term
operating capacity, asset base or operating income. Examples of
    maintenance capital expenditures include the replacement of
    equipment and coal reserves, whether through the expansion of an
    existing mine or the acquisition (by lease or otherwise) of new
    reserves, to the extent such expenditures are incurred to
    maintain or replace our operating capacity, asset base or
    operating income. Examples of expansion capital expenditures
    include the acquisition (by lease or otherwise) of reserves,
    equipment or a new mine or the expansion of an existing mine, to
    the extent such expenditures are incurred to increase our
    long-term operating capacity, asset base or operating income.
For the year ending December 31, 2010, we have budgeted
    $32.8 million in maintenance capital expenditures. We
    expect to fund maintenance capital expenditures primarily from
    cash generated by our operations. To the extent we incur
    expansion capital expenditures, we expect to fund those
    expenditures with the proceeds of borrowings under our new
    credit facility, issuance of debt and equity securities or other
    external sources of financings.
Off-Balance
    Sheet Arrangements
In the normal course of business, we are a party to certain
    off-balance sheet arrangements. These arrangements include
    guarantees and financial instruments with off-balance sheet
    risk, such as bank letters of credit, surety bonds, performance
    bonds and road bonds. No liabilities related to these
    arrangements are reflected in our consolidated balance sheet,
    and we do not expect any material adverse effects on our
    financial condition, results of operations or cash flows to
    result from these off-balance sheet arrangements.
Federal and state laws require us to secure certain long-term
    obligations such as mine closure and reclamation costs and other
    obligations. We typically secure these obligations by using
    surety bonds, an off-balance sheet instrument. The use of surety
    bonds is less expensive for us than the alternative of posting a
    100% cash bond and we typically use bank letters of credit to
    secure our surety bonding obligations. To the extent that surety
    bonds become unavailable, we would seek to secure our
    reclamation obligations with letters of credit, cash deposits or
    other suitable forms of collateral. We also post performance
    bonds to secure our performance of various contractual
    obligations and road bonds to secure our obligations to repair
    local roads.
As of December 31, 2009, we had approximately
    $31.3 million in surety bonds outstanding to secure the
    performance of our reclamation obligations, which were supported
    by approximately $6.9 million in letters of credit. As of
    December 31, 2009, we had approximately $12.3 million
    of performance bonds outstanding and $0.6 million of road
    bonds outstanding, none of which were secured by letters of
    credit.
Critical
    Accounting Policies and Estimates
Our preparation of financial statements in conformity with GAAP
    requires that we make estimates and assumptions that affect the
    amounts reported in the consolidated financial statements and
    accompanying notes. We base our judgments, estimates and
    assumptions on historical information and other known factors
    that we deem relevant. Estimates are inherently subjective as
    significant management judgment is required regarding the
    assumptions utilized to calculate accounting estimates. The most
    significant areas requiring the use of management estimates and
    assumptions relate to
units-of-production
amortization calculations, asset retirement obligations, useful
    lives for depreciation of fixed assets and estimates of fair
    values for asset impairment purposes. Our significant accounting
    policies are more fully described in Note 2 to our
    historical consolidated financial statements included elsewhere
    in this prospectus. This section describes those accounting
    policies and estimates that we believe are critical to
    understanding our historical consolidated financial statements
    and that we believe will be critical to understanding our
    consolidated financial statements subsequent to this offering.
Inventory
Inventory consists of coal that has been completely uncovered or
    that has been removed from the pit and stockpiled for crushing,
    washing or shipment to customers. Inventory also consists of
    supplies, primarily spare
85
Table of Contents
parts and fuel. Inventory is valued at the lower of average cost
    or market. The cost of coal inventory includes labor, equipment
    operating expenses and certain transportation and operating
    overhead.
Property,
    Plant and Equipment
Property, plant and equipment are recorded at cost. Expenditures
    that extend the useful lives of existing plant and equipment are
    capitalized. Maintenance and repairs that do not extend the
    useful life or increase productivity are charged to operating
    expense as incurred. Exploration expenditures are charged to
    operating expense as incurred, including costs related to
    locating coal deposits and drilling and evaluation costs
    incurred to assess the economic viability of such deposits.
    Plant and equipment are depreciated principally on the
    straight-line method over the estimated useful lives of the
    assets based on the following schedule:
Buildings and tipple
25 — 39 years
Machinery and equipment
7 — 12 years
Vehicles
5 — 7 years
Furniture and fixtures
3 — 7 years
Railroad siding
7 years
We acquire our reserves through purchases or leases of coal
    reserves. Coal reserves are recorded at fair value under
    purchase accounting at our formation date of August 24,
    2007, or as part of the Phoenix Coal acquisition. We deplete our
    reserves using the
units-of-production
method, without residual value, on the basis of tonnage mined in
    relation to estimated recoverable tonnage. At December 31,
    2009 and 2008, all of our reserves were attributed to mine
    complexes engaged in mining operations or leased to third
    parties. We believe that the carrying value of these reserves
    will be recovered. Residual surface values are classified as
    land and not depleted.
Exploration expenditures are charged to operating expense as
    incurred, including costs related to locating coal deposits and
    drilling and evaluation costs incurred to assess the economic
    viability of such deposits. Once the economic viability of such
    deposits is established, future expenditures are classified as
    mine development costs and are capitalized until production
    commences. Amortization of these mine development costs is
    initiated when the mine begins production using the
units-of-production
method based upon the estimated recoverable tonnage.
Advance
    Royalties
A substantial portion of our reserves are leased. Advance
    royalties are advance payments made to lessors under terms of
    mineral lease agreements that are recoupable through a reduction
    in royalties payable on future production. Amortization of
    leased coal interests is computed using the
units-of-production
method over estimated recoverable tonnage.
Long-Lived
    Assets
We follow authoritative guidance that requires projected future
    cash flows from use and disposition of assets to be compared
    with the carrying amounts of those assets when impairment
    indicators are present. When the sum of projected cash flows is
    less than the carrying amount, impairment losses are indicated.
    If the fair value of the assets is less than the carrying amount
    of the assets, an impairment loss is recognized. In determining
    such impairment losses, discounted cash flows or asset
    appraisals are utilized to determine the fair value of the
    assets being evaluated. Also, in certain situations, expected
    mine lives are shortened because of changes to planned
    operations. When that occurs and it is determined that the
    mine's underlying costs are not recoverable in the future,
    reclamation and mine closure obligations are accelerated. To the
    extent it is determined that an asset's carrying value will
    not be recoverable during a shorter mine life, the asset is
    written down to its recoverable value. No impairment triggers
    occurred and therefore no impairment losses were recognized
    during any of the years or periods presented.
86
Table of Contents
Identifiable
    Intangible Assets
Identifiable intangible assets are recorded in other assets in
    the accompanying consolidated balance sheets. We capitalize
    costs incurred in connection with borrowings or the
    establishment of credit facilities. These costs are amortized as
    an adjustment to interest expense over the life of the borrowing
    or term of the credit facility using the interest method.
We also have recorded intangible assets and liabilities at fair
    value associated with certain customer relationships and
    below-market coal sales contracts, respectively. These balances
    arose from the use of purchase accounting for business
    combinations and so the assets and liabilities were adjusted to
    fair value. These intangible assets are being amortized over
    their expected useful lives.
Asset
    Retirement Obligation
Our asset retirement obligations, or AROs, arise from the SMCRA
    and similar state statutes, which require that mine property be
    restored in accordance with specified standards and an approved
    reclamation plan. Our AROs are recorded initially at fair value.
    It has been our practice, and we anticipate that it will
    continue to be our practice, to perform a substantial portion of
    the reclamation work using internal resources. Hence, the
    estimated costs used in determining the carrying amount of our
    AROs may exceed the amounts that are eventually paid for
    reclamation costs if the reclamation work was performed using
    internal resources.
To determine the fair value of our AROs, we calculate on a mine
    by mine basis the present value of estimated reclamation cash
    flows. This process requires us to estimate the current
    disturbed acreage subject to reclamation, estimates of future
    reclamation costs and assumptions regarding the mine's
    productivity. These cash flows are discounted at the
    credit-adjusted, risk free interest rate based on
    U.S. Treasury bonds with a maturity similar to the expected
    lives of our mines.
When the liability is initially recorded for the costs to open a
    new mine site, the offset is recorded to the producing mine
    asset. Over time, the ARO liability is accreted to its present
    value, and the capitalized cost is depreciated over the
units-of-production
for the related mine. The liability is also increased as
    additional land is disturbed during the mining process. The
    timeline between digging the mining pit and extracting the coal
    is relatively short; therefore, much of the liability created
    for active mining is expensed within a month or so of
    establishment because the related coal has been extracted. If
    the assumptions used to estimate the ARO do not materialize as
    expected or regulatory changes occur, reclamation costs or
    obligations to perform reclamation and mine closure activities
    could be materially different than currently estimated. We
    review our entire reclamation liability at least annually and
    make necessary adjustments for permit changes as granted by
    state authorities, additional costs resulting from revisions to
    cost estimates and the quantity of disturbed acreage during the
    current year.
Income
    Taxes
As a limited partnership, we are not a taxable entity for
    federal or state income tax purposes; the tax effect of our
    activities passes through to our unitholders. Therefore, no
    provision or liability for federal or state income taxes is
    included in our financial statements. Net income for financial
    statement purposes may differ significantly from taxable income
    reportable to our unitholders as a result of timing or permanent
    differences between financial reporting under GAAP and the
    regulations promulgated by the IRS.
Revenue
    Recognition
Revenue from coal sales is recognized and recorded when shipment
    or delivery to the customer has occurred, prices are fixed or
    determinable and the title or risk of loss has passed in
    accordance with the terms of the sales contract. Under the
    typical terms of these contracts, risk of loss transfers to the
    customers at the mine or port when the coal is loaded on the
    rail, barge or truck.
Freight and handling costs paid to third-party carriers and
    invoiced to customers are recorded as cost of transportation and
    transportation revenue, respectively.
87
Table of Contents
Royalty and non-coal revenue consists of coal royalty income,
    service fees for providing land-fill earth moving services,
    commissions that we receive from a third party who sells
    limestone that we recover during our coal mining process,
    service fees for operating a coal unloading facility for a third
    party and fees that we receive for trucking ash for two
    municipal utility customers. Revenues are recognized when
    earned, or when the services are performed. Royalty revenue
    relates to the overriding royalty we receive on our underground
    coal reserves that we sublease to a third party mining company.
    By June 2008, our sublessee had completed the installation of
    its processing infrastructure and began to sell its coal
    production to other third parties.
Coal
    Sales Contracts
Our below-market coal sales contracts that were acquired through
    the Phoenix Coal acquisition and in connection with our
    acquisition of Oxford Mining Company in 2007 are contracts for
    which the prevailing market price was in excess of the contract
    price. The fair value was based on discounted cash flows
    resulting from the difference between the below-market contract
    price and the prevailing market price at the date of
    acquisition. The difference between the below-market
    contracts' cash flows and the cash flows at the prevailing
    market price is amortized into coal sales on the basis of tons
    shipped over the term of the respective contract.
Unit-Based
    Compensation
We account for unit-based awards in accordance with applicable
    guidance, which establishes standards of accounting for
    transactions in which an entity exchanges its equity instruments
    for goods or services. Unit-based compensation expense is
    recorded based upon the fair value of the award at the grant
    date. Such costs are recognized as expense on a straight-line
    basis over the corresponding vesting period. The fair value of
    our LTIP units is determined based on the sale price of our
    limited partner units in arm's length transactions. The
    unit price fair value was increased in September 2009 in
    connection with the Phoenix Coal acquisition where additional
    units were purchased by C&T Coal and AIM Oxford
    disproportionately to their respective ownership interests to
    help fund the acquisition. This resulted in C&T Coal's
    previous ownership interest being diluted. We verified the
    reasonableness of the new valuation of our units using
    traditional valuation techniques for publicly traded
    partnerships.
New
    Accounting Standards Issued and Adopted
In June 2009, the FASB issued a new standard establishing the
    FASB Accounting Standards Codification
    ("Codification") as the sole source of authoritative
    generally accepted accounting principles. The Codification
    reorganized existing U.S. accounting and reporting
    standards issued by the FASB and other related private sector
    standard setters into a single source of authoritative
    accounting principles arranged by topic. The Codification
    supersedes all existing U.S. accounting standards; all
    other accounting literature not included in the Codification
    (other than SEC guidance for publicly traded companies) is
    considered non-authoritative. This standard is effective for
    interim and annual reporting periods ending after
    September 15, 2009. The Codification does not change
    existing GAAP.
In September 2009, the FASB issued Accounting Standards Update
    ("ASU")
2009-06,
Implementation Guidance on Accounting for Uncertainty in
    Income Taxes and Disclosure Amendments for Nonpublic
    Entities
. This update addresses the need for additional
    implementation guidance on accounting for uncertainty in income
    taxes for all entities. The update clarifies that an
    entity's tax status as a pass through or tax-exempt
    not-for-profit entity is a tax position subject to recognition
    requirements of the standard and therefore must use the
    recognition and measurement guidance when assessing their tax
    positions. The ASU
2009-06
updates are effective for interim and annual periods ending
    after September 15, 2009. The adoption of the guidance in
    ASU
2009-06
during the third quarter of 2009 did not have a material impact
    on our consolidated financial statements.
In May 2009, the FASB issued new guidance for accounting for
    subsequent events that established the accounting for and
    disclosure of events that occur subsequent to the balance sheet
    date but before financial statements are issued or are available
    to be issued. The standard provides guidance on
    management's
88
Table of Contents
assessment of subsequent events and incorporates this guidance
    into accounting literature. The standard is effective
    prospectively for interim and annual periods ending after
    June 15, 2009. We adopted this standard for the year ended
    December 31, 2009 and the adoption did not impact our
    consolidated financial statements.
In December 2007, the FASB issued revised guidance on business
    combinations. This new guidance establishes principles and
    requirements for the acquirer of a business to recognize and
    measure in its financial statements. This amendment applies to
    all business combinations and establishes guidance for
    recognizing and measuring identifiable assets, liabilities,
    noncontrolling interests in the acquiree and goodwill. Most of
    these items are recognized at their full fair value on the
    acquisition date, including acquisitions where the acquirer
    obtains control but less than 100% ownership in the acquiree.
    The amendment also requires expensing acquisition-related costs
    as incurred and establishes disclosure requirements to enable
    the evaluation of the nature and financial effects of the
    business combination. This guidance is effective for business
    combinations with an acquisition date in fiscal years beginning
    after December 15, 2008. We have recorded the acquisition
    of the surface coal mining assets of Phoenix Coal dated
    September 30, 2009 under this revised guidance. The impact
    of adoption was to expense $379,000 of previously capitalized
    acquisition costs as of January 1, 2009.
In December 2007, the FASB issued new guidance on the accounting
    for noncontrolling ownership interests in a subsidiary and for
    the deconsolidation of a subsidiary. The guidance requires that
    noncontrolling ownership interests in consolidated subsidiaries
    be presented in the consolidated balance sheet within
    partners' capital as a separate component from the
    parent's equity as opposed to mezzanine equity.
    Consolidated net income will now be disclosed as the amount
    attributable to both the parent and the noncontrolling
    interests. The guidance also provides for changes in the
    parent's ownership interest in a subsidiary, including
    transactions where control is retained and where control is
    relinquished; it also requires expanded disclosures in the
    consolidated financial statements that clearly identify and
    distinguish between the interests of the parent owners and the
    interests of the noncontrolling owners of a subsidiary. This
    guidance requires retrospective application to all periods
    presented, as included in our consolidated financial statements.
New
    Accounting Standards Issued and Not Yet Adopted
In August 2009, the FASB issued ASU
2009-05,
Measuring Liabilities at Fair Value. The amendment provides
    clarification that in circumstances in which a quoted price in
    an active market for the identical liability is not available, a
    reporting entity is required to measure fair value using one or
    more of the alternative valuation methods outlined in the
    guidance. It also clarifies that restrictions preventing the
    transfer of a liability should not be considered as a separate
    input or adjustment in the measurement of its fair value. This
    amendment was effective as of the beginning of interim and
    annual reporting periods that begin after August 27, 2009.
    The adoption of this guidance did not impact our consolidated
    financial statements.
In June 2009, the FASB amended guidance for the consolidation of
    a variable interest entity ("VIE"). This guidance
    updated the determination of whether an enterprise is the
    primary beneficiary of a VIE, and is, therefore, required to
    consolidate an entity, by requiring a qualitative analysis
    rather than a quantitative analysis. This standard also requires
    continuous reassessments of whether an enterprise is the primary
    beneficiary of a VIE. Previously, reconsideration was required
    only when specific events had occurred. This guidance also
    requires enhanced disclosure about an enterprise's
    involvement with a VIE. The provisions of these updates are
    effective as of the beginning of interim and annual reporting
    periods that begin after November 15, 2009. We do not
    believe that this standard will have a material impact on our
    consolidated financial statements.
Quantitative
    and Qualitative Disclosures about Market Risk
We define market risk as the risk of economic loss as a
    consequence of the adverse movement of market rates and prices.
    We believe our principal market risks are commodity price risks
    and interest rate risk.
Commodity
    Price Risk
Historically, we have principally managed the commodity price
    risks from our coal sales through the use of long-term coal
    sales contracts of varying terms and durations, rather than
    through the use of derivative instruments. Please read
    "— Factors that Impact our Business" for more
    information about our long-term coal sales contracts.
89
Table of Contents
We believe that the price risk associated with diesel fuel is
    significant because of possible price volatility. Taking into
    account full or partial diesel fuel cost pass through provisions
    in our long-term coal sales contracts and our fixed price
    forward contracts for delivery of diesel fuel, we estimate that
    a hypothetical increase of $0.10 per gallon for diesel fuel
    would have reduced net income attributable to our unitholders
    for the year ended December 31, 2009 by $0.3 million.
Interest
    Rate Risk
We have exposure to changes in interest rates on our
    indebtedness associated with our credit facility. On
    September 11, 2009, we entered into an interest rate cap
    agreement to hedge our exposure to rising interest rates during
    2010. This agreement, which has an effective date of
    January 4, 2010 and a notional amount of
    $50.0 million, provides for a LIBOR interest rate cap of 2%
    using three-month LIBOR. LIBOR was 0.251% as of
    December 31, 2009. We paid a fixed fee of $85,000 for this
    agreement which has quarterly settlement dates and matures on
    December 31, 2010. At December 31, 2009, the value of
    the interest rate cap is $34,000 and is recorded in other assets
    and the
mark-to-market
decrease in value of $51,000 was recorded to interest expense in
    our consolidated statement of operations for the year ended
    December 31, 2009.
A hypothetical increase or decrease in interest rates by 1%
    would have changed our interest expense by $0.3 million for
    the year ended December 31, 2009, which reflects the impact
    of an interest rate swap that terminated in August 2009.
Seasonality
Our business has historically experienced only limited
    variability in its results due to the effect of seasons. Demand
    for coal-fired power can increase due to unusually hot or cold
    weather as power consumers use more air conditioning or heating.
    Conversely, mild weather can result in softer demand for our
    coal. Adverse weather conditions, such as blizzards or floods,
    can impact our ability to mine and ship our coal and our
    customers' ability to take delivery of coal.
90
Table of Contents
THE COAL
    INDUSTRY
Introduction
Coal is an abundant natural resource that is used primarily as
    an efficient and affordable fuel for the generation of electric
    power. According to the most recent estimate of the EIA, there
    are approximately 929.3 billion tons of worldwide
    recoverable coal reserves. Approximately 262.7 billion
    tons, or 28.3%, of those reserves are located in the United
    States, more than in any other country. U.S. coal reserves
    represent over 200 years of domestic supply based on
    current production rates. Coal is also the most abundant
    domestic fossil fuel, accounting for approximately 94% of the
    nation's fossil energy reserves.
Coal is ranked by heat content, with bituminous,
sub-bituminous
and lignite coal representing the highest to lowest heat
    ranking, respectively. Coal is also categorized as either steam
    coal or metallurgical coal. Steam coal is used by utilities and
    independent power producers to generate electricity and
    metallurgical coal is used by steel companies to produce
    metallurgical coke for use in blast furnaces. Steam coal
    comprises the vast majority of total coal resources, accounting
    for approximately 87% and 95% of the total global and
    U.S. coal production, respectively. Please read
    "— Special Note Regarding the EIA's Market
    Data and Projections" below.
Industry
    Trends
Coal consumption and production in the United States have been
    driven in recent periods by several market dynamics and trends.
    The recent global economic downturn has negatively impacted coal
    demand in the short-term, but long-term projections for coal
    demand remain positive. These market dynamics and trends include
    the following:
•
Favorable long-term outlook for U.S. steam coal
    market
.  Although domestic coal consumption
    declined in 2009 due to the global economic downturn, the EIA
    forecasts that domestic coal consumption will increase by 14.4%
    through 2015 and by 32.2% through 2035, primarily due to the
    projected continued growth in coal-fired electric power
    generation demand. The EIA also forecasts that coal-fired
    electric power generation will increase by 13.0% through 2015
    and by 27.0% through 2035, with coal remaining the dominant fuel
    source in the future.
•
Increasing demand for coal produced in Northern Appalachia
    and the Illinois Basin.
Coal production in
    Northern Appalachia and, to a greater extent the Illinois Basin
    began to decline after the adoption of the CAAA, which among
    other things, limited sulfur dioxide emissions from coal-fired
    electric power plants. According to the EIA, coal production in
    Northern Appalachia and the Illinois Basin is expected to grow
    by 29.2% and 33.1%, respectively, through 2015 and by 35.7% and
    42.8%, respectively, through 2035. We believe that this
    projected increase will be driven by a combination of the
    continued decline in coal production in Central Appalachia and
    the new scrubber installations at coal-fired power plants in our
    primary market area. According to public announcements,
    approximately 18,400 megawatts of additional scrubbed generating
    capacity are expected to come online in our primary market area
    by 2017, including 4,750 megawatts in Ohio in the next three
    years.
•
Decline in coal production in Central
    Appalachia.
Although Central Appalachia is
    currently the nation's second largest coal production area
    after the PRB, the EIA forecasts that coal production in Central
    Appalachia will decline by 34.5% through 2015 and by 54.1%
    through 2035. This decline will be offset by production from
    other U.S. regions, including Northern Appalachia and the
    Illinois Basin. The combination of reserve depletion and
    increasing regulatory enforcement, mining costs and geologic
    complexity in Central Appalachia is expected to lead to
    substantial production declines over the long term.
•
Expected near-term increases in international demand for
    U.S. coal exports
.  Although down from the
    previous year, U.S. exports began to increase in the second
    half of 2009, supported by recovering global economies and
    continued rapid growth in electric power generation and steel
    production
91
Table of Contents
capacity in Asia, particularly in China and India. In addition,
    traditional coal exporting countries such as Australia,
    Indonesia, Colombia and South Africa have been unable to
    increase exports rapidly enough for a variety of reasons,
    including geologic and logistical issues and increased domestic
    consumption. Furthermore, increased international demand for
    higher priced metallurgical coal has resulted in certain coal
    from Central Appalachia and Northern Appalachia, which can serve
    as either metallurgical or steam coal, being drawn into the
    metallurgical coal export market, which further reduces supplies
    of steam coal from this region for domestic consumption. Because
    of these trends, the United States is expected to continue to be
    an increasingly important swing supplier of coal to the global
    marketplace in the near term.
•
Development of new coal-related technologies will lead to
    increased demand for coal
.  The EIA projects that
    new
coal-to-liquids
plants will account for 32 million tons of annual coal
    demand in ten years with that amount more than doubling to
    68 million tons by 2035. In addition, through the ARRA the
    federal government has targeted over $1.5 billion to CCS
    research and another $800 million for the Clean Coal Power
    Initiative, a ten-year program supporting commercial application
    of CCS technology.
•
Increasingly stringent air quality legislation will continue
    to impact the demand for coal.
A series of more
    stringent requirements related to particulate matter, ozone,
    mercury, sulfur dioxide, nitrogen oxides, carbon dioxide and
    other air emissions have been proposed or enacted by federal or
    state regulatory authorities in recent years. Considerable
    uncertainty is associated with these air quality regulations,
    some of which have been the subject of legal challenges in
    courts, and the actual timing of implementation remains
    uncertain. However, we believe that it is likely that additional
    air quality regulations ultimately will be adopted in some form
    at the federal or state level. While it is currently not
    possible to determine the impact of any such regulatory
    initiatives on future demand for coal, it may be materially
    adverse. See "Risk Factors — Risks Related to Our
    Business — Existing and future regulatory requirements
    relating to sulfur dioxide and other air emissions could affect
    our customers and could reduce the demand for the high-sulfur
    coal we produce and cause coal prices and sales of our
    high-sulfur coal to decline materially."
Coal
    Consumption and Demand
The majority of coal consumed in the United States is used to
    generate electricity, with the balance used by a variety of
    industrial users to heat and power foundries, cement plants,
    paper mills, chemical plants and other manufacturing and
    processing facilities. Metallurgical coal is predominately
    consumed in the production of metallurgical coke used in
    steelmaking blast furnaces. In 2009, coal-fired power plants
    produced approximately 45% of all electric power generation,
    more than natural gas and nuclear, the two next largest domestic
    fuel sources, combined. Steam coal used by utilities and
    independent power producers to generate electricity, accounted
    for 92% of total coal consumption in 2009.
In 2009, total coal consumption in the United States decreased
    by approximately 11% from 2008 levels, reflecting the effects of
    the economic recession. The drop in coal consumption was driven
    primarily by the reduction in electric power demand and the
    steep decline in natural gas prices that encouraged coal to
    natural gas switching among electric utilities. The decreased
    electric power demand was particularly apparent in the
    industrial sector where demand fell by an estimated 18.3% in
    2009. Unusually cool summer temperatures in some areas of the
    country where coal is the predominant source of electric power
    generation also resulted in lower coal consumption.
Going forward, the EIA forecasts that total U.S. coal
    consumption will increase in 2010 by over 3% due to anticipated
    increases in electricity demand resulting from increased
    economic activity and higher natural gas prices. In addition,
    over the long term, the EIA forecasts in its 2010 reference case
    that total coal consumption will grow by 14% though 2015 and 32%
    through 2035, primarily due to gradual increases in coal-fired
    electric power generation and the introduction of
coal-to-liquids
plants.
92
Table of Contents
The following table sets forth actual coal consumption for 2008,
    estimated consumption for 2009 and 2010 and the EIA's
    projected coal consumption by sector through 2035 for the
    periods indicated.
U.S. Coal
    Consumption by Sector
(tons in millions)
Total
Total
Actual
Estimate
Estimate
Forecast
Growth
Forecast
Growth
2008
2009
2010
2015
2009-2015
2035
2009-2035
Electric Power
1,042
934
961
1,044
11.7
%
1,183
26.7
%
Other Industrial
54
44
43
54
19.1
%
51
14.6
%
Coke Plants
22
16
22
20
28.2
%
14
(10.3
)%
Residential/ Commercial
4
3
3
3
—
%
3
—
%
Coal-to-Liquids
—
—
—
20
n/m
68
n/m
Total U.S. Consumption
1,122
997
1,029
1,141
14.4
%
1,319
32.2
%
Source: EIA.
In the United States, the reliance on coal-fired generation is
    attributable to the abundance and low cost of coal. According to
    the EIA, coal is expected to remain the dominant energy source
    for electric power generation for the foreseeable future.
U.S.
    Scrubber Market
The CAAA imposed increasingly stringent regulations regarding
    the emissions of sulfur dioxide and nitrogen oxides. In response
    to these regulations, emission control technologies such as flue
    gas desulfurizers, also known as scrubbers, were developed to
    reduce emissions of sulfur dioxide. The use of scrubbers has
    addressed a wide array of technological and economic challenges
    and has become the predominant sulfur dioxide emissions control
    technology used by U.S. coal-fired power plants. Scrubbers
    have the additional benefit of being able to reduce mercury
    emissions. This widespread installation of scrubbers is expected
    to significantly increase demand for higher sulfur coal,
    particularly in our primary market area.
Nationwide, there are currently over 148,000 megawatts of
    scrubbed electric generating capacity, including 18,900
    megawatts that were added in 2009. According to public
    announcements, we expect 76,200 megawatts of additional scrubbed
    electric generating capacity to be added by 2017. Currently, in
    our primary market area there are over 54,500 megawatts of
    scrubbed electric generating capacity. According to public
    announcements, we expect approximately 18,400 megawatts of
    additional scrubbed electric generating capacity in our primary
    market area to come online by 2017, including 4,750 megawatts in
    Ohio in the next three years. This additional scrubbed capacity
    represents approximately 24% of the total scrubbed capacity to
    be added nationwide during that period.
The following map of the United States shows coal-fired power
    plants with existing or announced scrubbers:
[Map to come]
Coal
    Consumption in Our Primary Market Area
Coal is the dominant fuel source for electric power generation
    in our primary market area and is expected to remain so for the
    foreseeable future. As shown in the table below, 69.1% of the
    electricity in our market area is generated by coal-fired power
    plants as compared to 38.2% for the rest of the United States.
    In addition, approximately 27.7% of coal consumption nationwide
    is burned by coal-fired power plants in our primary market area.
93
Table of Contents
2009
    Coal-Fired Electricity Generation
Total
Electricity
Coal-Fired Electricity
Generation
Generation
GWh
GWh
% of total
Ohio
135,949
113,824
83.7
%
Indiana
116,668
108,591
93.1
%
Pennsylvania
218,377
104,927
48.0
%
Illinois
193,214
90,949
47.1
%
Kentucky
90,988
84,380
92.7
%
West Virginia
70,774
68,136
96.3
%
Total — Our Primary Market Area
825,970
570,807
69.1
%
Total — Rest of United States
3,125,137
1,193,679
38.2
%
Total — United States
3,951,107
1,764,486
44.7
%
Source: EIA.
U.S. Coal
    Production
Estimated total U.S. coal production in 2009 was
    1.1 billion tons, a decrease of 7.7% from 2008. This
    decrease is due to the global economic downturn, which
    significantly reduced domestic demand for coal-fired electric
    power and led to a decline in exports. The EIA has forecasted a
    6.7% increase in coal production through 2015 and an 18.7%
    increase through to 2035.
The following table sets forth historical and forcasted
    production statistics in each of the major U.S. coal
    producing regions for the periods indicated based on the
    EIA's data and projections.
U.S. Coal
    Production
Source: EIA.
Coal
    Producing Regions
Coal is mined in over half of the states in the United States,
    but domestic coal production is primarily attributed to one of
    three coal producing regions: Appalachia, the Interior and the
    Western region. Within those three regions, the major producing
    centers are Northern and Central Appalachia, the Illinois Basin
    in the Interior region and the PRB in the Western region. The
    type, quality and characteristics of coal vary by, and within
    each, region.
94
Table of Contents
Northern Appalachia.
Northern Appalachia
    includes Ohio, Pennsylvania, Maryland and northern West
    Virginia. The area includes reserves of bituminous coal with
mid-to-high
heat content (generally ranging from 10,300 to
    13,000 Btu/lb) and
mid-to-high
sulfur content (typically ranging from 1.0% to 4.0%). Coal
    produced in Northern Appalachia is marketed primarily to
    electric utilities, industrial consumers and the export market,
    with some metallurgical coal marketed to steelmakers. The
    widespread installation of scrubbers by electric utilities is
    expected to significantly increase demand for high-sulfur coal
    from Northern Appalachia, providing a positive outlook for the
    area.
Estimated coal production in Northern Appalachia for 2009 was
    121.5 million tons, a decline of 10.5% from 2008. In 2010,
    the EIA forecasts that coal production in Northern Appalachia
    will increase slightly to 122.1 million tons. The EIA
    forecasts that coal production in Northern Appalachia will
    increase by 29.2% through 2015 and by 35.7% through 2035.
Central Appalachia.
Central Appalachia
    includes eastern Kentucky, southern West Virginia, Virginia and
    northern Tennessee. The area includes reserves of bituminous
    coal with a high heat content (typically
12,000 Btu/lb
or greater) and relatively low sulfur content (typically ranging
    from 0.5% to 1.5%). Coal produced in Central Appalachia is
    marketed primarily to electric utilities, with metallurgical
    coal marketed to steelmakers. The combination of reserve
    depletion and increasing regulatory enforcement, mining costs
    and geologic complexity in Central Appalachia is expected to
    lead to substantial production declines over the long term. In
    addition, the widespread installation of scrubbers is expected
    to enable higher sulfur coal from Northern Appalachia and the
    Illinois Basin to replace coal from Central Appalachia.
Estimated coal production in Central Appalachia for 2009 was
    215.5 million tons, a decline of 8.0% from 2008. In 2010,
    the EIA estimates that production in Central Appalachia will
    decline by another 13.9%.  The EIA forecasts that coal
    production in Central Appalachia will decline by 34.5% through
    2015, causing total production in Central Appalachia to fall
    below forecasted production levels for Northern Appalachia. The
    EIA forecasts the coal production in Central Appalachia will
    decline by more than half through 2015.
The following map of the United States shows domestic electric
    generating plants that receive coal shipments from Central
    Appalachia:
[Map to come]
Illinois Basin.
The Illinois Basin includes
    western Kentucky, Illinois and Indiana. The area includes
    reserves of bituminous coal with a mid-level heat content
    (typically ranging from 10,100 to
12,600 Btu/lb)
and
mid-to-high
sulfur content (typically ranging from 1.0% to 4.3%). Illinois
    Basin coal also can have high ash and chlorine content. Most of
    the coal produced in the Illinois Basin is used to produce
    electricity, with small amounts used in industrial applications.
    The EIA forecasts that production of high sulfur coal in the
    Illinois Basin, which has trended down since the early 1990s
    when many coal-fired plants switched to lower sulfur coal to
    reduce sulfur dioxide emissions after the passage of the CAAA,
    will rebound as existing coal-fired capacity is retrofitted with
    scrubbers and new coal-fired capacity with scrubbers is added.
    In addition, planned
coal-to-liquids
facilities, which are backed by state support and incentives and
    are indifferent to the sulfur content of coal, are poised to
    become substantial new consumers of Illinois Basin coal.
Estimated coal production in the Illinois Basin was
    93.4 million tons for 2009, a decrease of 5.9% from 2008.
    In 2010, the EIA forecasts that coal production in the Illinois
    Basin will increase slightly to 97.3 million tons. The EIA
    forecasts that coal production in the Illinois Basin will
    increase by 33.1% through 2015 and by 42.8% through 2035.
Powder River Basin.
The PRB is located in
    Wyoming and Montana. In terms of production, the PRB is the
    dominant coal producing region in the world, with its coal-seam
    geology allowing for high volume, low cost surface mining. The
    PRB produces
sub-bituminous
coal with low sulfur content (typically ranging from 0.2% to
    0.9%) and low level heat content (typically ranging from 8,000
    to 9,500 Btu). After strong growth in production over the
    past 20 years, growth in demand for PRB coal is expected to
    moderate in the future due to the slowing demand for low sulfur,
    low Btu coal as scrubbers proliferate and concerns about
    increases in rail transportation rates and rising operating
    costs grow.
95
Table of Contents
Estimated coal production in the PRB was 417.7 million tons
    for 2009, a decrease of 7.5% from 2008. In 2010, the EIA
    forecasts that coal production in the PRB will increase to
    434.9 million tons. The EIA forecasts that coal production
    in the PRB will increase by 12.6% through 2015 and by 31.9%
    through 2035.
Coal
    Imports and Exports
Almost all of the coal consumed in the United States is produced
    from domestic sources. Coal imports represent a small portion of
    domestic coal consumption, averaging only about 2% of total
    U.S. coal consumption. Coal is imported into the United
    States primarily from Colombia, Indonesia and Venezuela.
    Imported coal generally serves coastal states along the Gulf of
    Mexico and the eastern seaboard. We do not expect U.S. coal
    imports to increase significantly in the near term due to rising
    demand in Asia and infrastructure limitations in the United
    States.
Although down from the previous year, U.S. exports began to
    increase in the second half of 2009, supported by recovering
    global economies and continued rapid growth in electric power
    generation and steel production capacity in Asia, particularly
    in China and India. In addition, traditional coal exporting
    countries such as Australia, Indonesia, Colombia and South
    Africa have been unable to increase exports rapidly enough for a
    variety of reasons, including geologic and logistical issues and
    increased domestic consumption. Furthermore, increased
    international demand for higher priced metallurgical coal has
    resulted in certain coal from Central Appalachia and Northern
    Appalachia, which can serve as either metallurgical or steam
    coal, being drawn into the metallurgical coal export market,
    which further reduces supplies of steam coal from this region
    for domestic consumption. Because of these trends, the United
    States is expected to continue to be an increasingly important
    swing supplier of coal to the global marketplace in the near
    term.
Coal
    Mining Methods
Coal is mined using two primary methods, underground mining and
    surface mining.
Surface
    Mining
Surface mining is generally used when coal is found relatively
    close to the surface, when multiple seams in close vertical
    proximity are being mined or when conditions otherwise warrant.
    Surface mining involves removing the overburden (earth and rock
    covering the coal) with heavy earth moving equipment and
    explosives, loading out the coal, replacing the overburden and
    topsoil after the coal has been excavated and reestablishing
    vegetation and plant life. There are four primary surface mining
    methods in use in Northern Appalachia and the Illinois Basin:
    area, contour, auger and highwall.
•
Area Mining.
Area mining removes coal from
    broad areas where the land is relatively flat. An initial cut of
    overburden is removed and placed in a location that will
    facilitate final reclamation. After the coal is removed from the
    initial cut, a second cut of overburden is removed and placed in
    the initial cut, exposing the coal for removal in the second
    mine cut. This process is repeated until the mining cuts have
    advanced through the reserve area.
•
Contour Mining.
Contour mining removes coal
    from more hilly terrain. Contour mining is characterized by mine
    cuts that follow the contour of the hill and are generally
    smaller than the mine cuts common in area mining. A wedge of
    overburden is removed along the coal outcrop on the side of a
    hill, forming a bench at the level of the coal. After the coal
    is removed, overburden from subsequent mine cuts is placed back
    on the bench to return the hill to its natural slope.
•
Auger Mining.
Auger mining recovers coal that
    is uneconomic to mine by the area and contour mining methods due
    to the large amount of overburden overlying the coal. The auger
    is placed at the exposed coal face and bores into the coal seam.
    Pillars of undisturbed coal are left in place to support the
    overlying overburden.
•
Highwall Mining.
Highwall mining is similar to
    auger mining. A highwall miner consists of a launch vehicle,
    push beams and a continuous miner head. This system utilizes the
    continuous miner
96
Table of Contents
to cut into the exposed coal face. The push beams contain augers
    or conveyor belts that transport the coal back to the launch
    vehicle as the continuous miner advances. The launch vehicle
    applies hydraulic pressure on the push beams to push the
    continuous miner against the face as it advances into the coal
    seam. As in the auger mining method, pillars of undisturbed coal
    are left in place to support the overburden. Both the auger and
    highwall mining methods allow recovery of coal that would
    otherwise have been lost due to the depth of the coal seam below
    the surface.
Surface mining produces the majority of U.S. coal output,
    accounting for nearly 70% of U.S. production in 2009, with
    large surface mines (mines producing greater than
    10 million tons per annum) contributing over 40% of the
    total. Productivity for surface mines in the eastern United
    States in 2009 averaged 3.64 tons per employee per hour.
Underground
    Mining
Underground mining is generally used when the coal seam is too
    deep to permit surface mining. There are two principal
    underground mining methods: room and pillar and longwall.
•
Room and Pillar Mining.
In room and pillar
    mining, rooms are cut into the coal bed leaving a series of
    pillars, or columns of coal, to help support the mine roof and
    control the flow of air. Continuous mining equipment is used to
    cut the coal from the mining face. The room and pillar method is
    often used to mine smaller coal blocks or thin seams.
•
Longwall Mining.
The other underground mining
    method commonly used in the United States is the longwall mining
    method. In longwall mining, a rotating drum is trammed
    mechanically across the face of coal, and a hydraulic system
    supports the roof of the mine while it advances through the
    coal. Chain conveyors then move the loosened coal to an
    underground mine conveyor system for delivery to the surface.
Productivity for underground mines in the eastern United States
    in 2009 averaged 3.02 tons per employee per hour.
Coal
    Quality Characteristics
Coal quality is differentiated primarily by its heat content as
    measured in British thermal units per pound (Btu/lb). In
    general, coal with low moisture and ash content has high heat
    content. Coal with higher heat content commands higher prices
    because less coal is needed to generate a given quantity of
    electric power.
Coal quality is also differentiated by sulfur content. When coal
    is burned sulfur dioxide and other air emissions are released.
Sub-bituminous
coal (e.g. PRB coal) typically has lower sulfur content than
    bituminous coal. Coal in southern West Virginia, eastern
    Kentucky, Colorado and Utah, however, also generally has low
    sulfur content. A coal's sulfur content can be further
    classified as compliance or non-compliance. Compliance coal is a
    term used in the United States to describe coal that, when
    burned, emits less than 1.2 lbs of sulfur dioxide per million
    Btu and complies with the requirements of the CAAA without the
    use of scrubbers. The primary reserves of compliance coal are
    found in both the PRB and Central Appalachia.
High sulfur coal can be burned in electric utility plants
    equipped with sulfur-reduction technology, such as scrubbers,
    which can reduce sulfur dioxide emissions by more than 90%.
    Plants without scrubbers can burn high sulfur coal by blending
    it with lower sulfur coal, or by purchasing emission allowances
    on the open market.
Coal ash and chlorine content also can influence the
    marketability of a particular coal. Ash is the inorganic residue
    remaining after the combustion of coal. As with sulfur content,
    ash content varies from seam to seam. Ash content is also an
    important characteristic of coal because electric generating
    plants must handle and dispose of ash following combustion. The
    chlorine content of coal is important to generating station
    operators since high levels can adversely impact boiler
    performance directly by both high and low temperature corrosion
    and indirectly by reacting with other coal impurities to cause
    ash fouling. Coal found in the central
97
Table of Contents
Illinois Basin (primarily within the state of Illinois)
    typically exhibits higher chlorine concentrations than the coal
    found in western Kentucky and Indiana.
Transportation
The U.S. coal industry is dependent on the availability of
    a consistent and responsive transportation network connecting
    the various supply regions to the domestic and international
    markets. Railroads and barges comprise the foundation of the
    domestic coal distribution system, collectively handling about
    three-quarters of all coal shipments. Truck and conveyor systems
    typically move coal over shorter distances.
Although the purchaser typically pays the freight,
    transportation costs are still important to coal mining
    companies because the purchaser may choose a supplier largely
    based on the total delivered cost of coal, which includes the
    cost of transportation. Coal used for domestic consumption is
    generally sold
free-on-board
at the mine, or FOB mine, which means the purchaser normally
    bears the transportation costs. Transportation can be a large
    component of a purchaser's total cost.
While coal can sometimes be moved by one transportation method
    to market, it is common for two or more modes to be used to ship
    coal (i.e., inter-modal movements). The method of transportation
    and the delivery distance greatly impact the total cost of coal
    delivered to the consumer.
Special
    Note Regarding the EIA's Market Data and
    Projections
Coal industry market data and projections referred to in this
    section and elsewhere in this prospectus and prepared by the EIA
    reflect statements of what might happen in the coal industry
    given the assumptions and methodologies used by the EIA.
    Industry projections of the EIA are subject to numerous
    assumptions and methodologies chosen by the EIA. In addition,
    these projections assume that the laws and regulations in effect
    at the time of the projections remain unchanged and that no
    pending or proposed federal or state carbon emissions
    legislation has been enacted and that additional coal-fired
    power plants will be built during the period. Therefore, the
    EIA's projections do not take into account potential
    regulation of greenhouse gas emissions pursuant to proposed or
    future U.S. treaty obligations, statutory or regulatory
    changes under the Clean Air Act, or federal or additional state
    adoption of a greenhouse gas regulatory scheme or reductions in
    greenhouse gas emissions mandated by courts or through other
    legally enforceable mechanisms. The EIA's projections with
    respect to the demand for coal may not be met, absent other
    factors, if comprehensive carbon emissions legislation is
    enacted. In addition, these projections may assume certain
    general economic conditions or industry conditions and commodity
    prices for alternative energy sources at the time of the
    projection that may or may not reflect actual economic or
    industry conditions during the forecast period, including with
    respect to planned and unplanned additional electricity
    generating capacity. The economic conditions accounted for in
    the EIA's industry projections reflect existing and
    projected economic conditions at the time the projections were
    made and do not necessarily reflect current economic conditions
    or any subsequent deterioration of economic conditions. Actual
    results may differ from those results projected by the EIA,
    including projections related to the demand for additional
    electricity generating capacity, because of changes in economic
    conditions, laws or regulations, pricing for other energy
    sources, unanticipated production cuts, or because of other
    factors not anticipated in the EIA's projections.
98
Table of Contents
BUSINESS
Overview
We are a low cost producer of high value steam coal, and we are
    the largest producer of surface mined coal in Ohio. We focus on
    acquiring steam coal reserves that we can efficiently mine with
    our modern, large scale equipment. Our reserves and operations
    are strategically located in Northern Appalachia and the
    Illinois Basin to serve our primary market area of Illinois,
    Indiana, Kentucky, Ohio, Pennsylvania and West Virginia. We
    market our coal primarily to large utilities with coal-fired,
    base-load scrubbed power plants under long-term coal sales
    contracts. We believe that we will experience increased demand
    for our high-sulfur coal from power plants that have or will
    install scrubbers. Currently, there is over 54,500 megawatts of
    scrubbed base-load electric generating capacity in our primary
    market area and plans have been announced to add over 18,400
    megawatts of additional scrubbed capacity by the end of 2017. We
    also believe that we will experience increased demand for our
    coal from power plants that use coal from Central Appalachia as
    production in that region continues to decline.
We currently have 19 active surface mines that are managed as
    eight mining complexes. During the fourth quarter of 2009, our
    largest mine represented 12.5% of our coal production. This
    diversity reduces the risk that operational issues at any one
    mine will have a material impact on our business or our results
    of operations. Consistent coal quality across many of our mines
    and the mobility of our equipment fleet allows us to reliably
    serve our customers from multiple mining complexes while
    optimizing our mining plan. Our operations also include two
    river terminals, strategically located in eastern Ohio and
    western Kentucky, that further enhance our ability to supply
    coal to our customers with river access from multiple mines.
We produced 5.8 million tons of coal during 2009, including
    0.4 million tons produced from the reserves we acquired in
    western Kentucky from Phoenix Coal on September 30, 2009.
    As a result of this acquisition, our coal production during the
    fourth quarter of 2009 was 1.8 million tons, or
    7.2 million tons on an annualized basis. During 2009, we
    sold 6.3 million tons of coal, including 0.5 million
    tons of purchased coal. We currently have long-term coal sales
    contracts in place for 2010, 2011, 2012 and 2013 that represent
    97.2%, 93.0%, 71.4% and 39.7%, respectively, of our 2010
    estimated coal sales of 8.5 million tons. Members of our
    senior management team have long-standing relationships within
    our industry, and we believe those relationships will allow us
    to continue to obtain long-term contracts for our coal
    production that will continue to provide us with a reliable and
    stable revenue base.
As of December 31, 2009, we controlled 91.6 million
    tons of proven and probable coal reserves, of which
    68.6 million tons were associated with our surface mining
    operations and the remaining 23.0 million tons consisted of
    underground coal reserves that we have subleased to a third
    party in exchange for an overriding royalty. Historically, we
    have been successful at replacing the reserves depleted by our
    annual production and growing our reserve base by acquiring
    reserves with low operational, geologic and regulatory risks and
    that were located near our mining operations or that otherwise
    had the potential to serve our primary market area. Over the
    last five years, we have produced 23.6 million tons of coal
    and acquired 52.9 million tons of proven and probable coal
    reserves, including 24.6 million tons of coal reserves that
    we acquired in connection with the Phoenix Coal acquisition. We
    believe that our existing relationships with owners of large
    reserve blocks and our position as the largest producer of
    surface mined coal in Ohio will allow us to continue to acquire
    reserves in the future.
For the year ended December 31, 2009, we generated revenues
    of approximately $293.8 million, net income attributable to
    our unitholders of approximately $23.5 million and Adjusted
    EBITDA of approximately $50.8 million. Please read
    "Selected Historical and Pro Forma Consolidated Financial
    and Operating Data" for our definition of Adjusted EBITDA
    and a reconciliation of Adjusted EBITDA to net income (loss)
    attributable
99
Table of Contents
to our unitholders. The following table summarizes our mining
    complexes, our coal production for the year ended
    December 31, 2009 and our coal reserves as of
    December 31, 2009:
Production for
As of December 31, 2009
the Year Ended
Proven &
Average
Average
Primary
December 31,
Probable
Heat
Sulfur
Transportation
Mining Complexes
2009
Reserves
(1)
Value
Content
Methods
(in million tons)
(Btu/lb)
(%)
Surface Mining Operations:
Northern Appalachia (principally Ohio)
Cadiz
1.1
12.4
11,520
3.3
Barge, Rail
Tuscarawas County
0.9
8.8
11,570
3.7
Truck
Belmont County
1.3
6.6
11,510
3.7
Barge
Plainfield
0.5
6.4
11,350
4.4
Truck
New Lexington
0.6
4.9
11,260
4.0
Rail
Harrison
(2)
0.7
2.8
12,040
1.8
Barge, Rail, Truck
Noble County
0.3
2.5
11,230
4.7
Barge, Truck
Illinois Basin (Kentucky)
Muhlenberg
    County
(3)
0.4
24.2
11,295
3.6
Barge, Truck
Total Surface Mining Operations
5.8
68.6
Underground Coal Reserves:
Northern Appalachia (Ohio)
Tusky
(4)
23.0
12,900
2.1
Total Underground Coal Reserves
23.0
Total
91.6
(1)
Reported as recoverable coal reserves, which is the portion of
    the coal that could be economically and legally extracted or
    produced at the time of the reserve determination, taking into
    account mining recovery and preparation plant yield. For
    definitions of proven coal reserves, probable coal reserves and
    recoverable coal reserves, please read "— Coal
    Reserves."
(2)
The Harrison mining complex is owned by Harrison Resources, our
    joint venture with CONSOL Energy. We own 51% of Harrison
    Resources and CONSOL Energy owns the remaining 49% through one
    of its subsidiaries. Because the results of operations of
    Harrison Resources are included in our consolidated financial
    statements for the year ended December 31, 2009 as required
    by GAAP, coal production and proven and probable coal reserves
    attributable to the Harrison mining complex are presented on a
    gross basis assuming we owned 100% of Harrison Resources. Please
    read "— Mining Operations — Northern
    Appalachia — Harrison Mining Complex."
(3)
Acquired from Phoenix Coal on September 30, 2009. As a
    result, production data represents production from the date of
    acquisition though December 31, 2009.
(4)
Please read "— Coal Reserves —
    Underground Coal Reserves" for more information about our
    underground coal reserves at the Tusky mining complex, which we
    have subleased to a third party in exchange for an overriding
    royalty. During 2009, we received royalty payments on
    0.6 million tons of coal produced from the Tusky mining
    complex.
100
Table of Contents
[Map to
    come]
Business
    Strategies
Our primary business objective is to maintain and, over time,
    increase our cash available for distribution by executing the
    following strategies:
•
Increasing coal sales to large utilities with coal-fired,
    base-load scrubbed power plants in our primary market
    area.
In 2009, approximately 69% of the total
    electricity generated in our primary market area was generated
    by coal-fired power plants, compared to approximately 38% for
    the rest of the United States. We intend to continue to focus on
    marketing coal to large utilities with coal-fired, base-load
    scrubbed power plants in our primary market area of Illinois,
    Indiana, Kentucky, Ohio, Pennsylvania and West Virginia. We
    believe that we will experience increased demand for our
    high-sulfur coal from power plants that have or will install
    scrubbers. Currently, there is over 54,500 megawatts of scrubbed
    base-load electric generating capacity in our primary market
    area and plans have been announced to add over 18,400 megawatts
    of additional scrubbed capacity by the end of 2017. We also
    believe that we will experience increased demand for our coal
    from power plants that use coal from Central Appalachia as
    production in that region continues to decline.
•
Maximizing profitability by maintaining highly efficient,
    diverse and low cost surface mining
    operations
.  We intend to focus on lowering costs
    and improving the productivity of our operations. We utilize
    surface mining methods that allow us to leverage our large scale
    mobile equipment and experienced work force to minimize our
    mining costs while balancing our production with near-term coal
    sales commitments without incurring large start up costs. We
    believe our focus on efficient surface mining practices results
    in our cash costs being among the lowest of our peers in
    Northern Appalachia, which we believe will allow us to compete
    effectively, especially during periods of declining coal prices.
    We are in the process of implementing the same mining practices
    that we currently use in Ohio at the mines that we recently
    acquired as part of the Phoenix Coal acquisition. We currently
    have 19 active surface mines that are managed as eight mining
    complexes, with our largest mine comprising 12.5% of our coal
    production during the fourth quarter of 2009. This diversity and
    focus on reserves with low regulatory risks reduce the
    likelihood that operational or permitting issues at any one mine
    will have a material impact on our business or our results of
    operations.
•
Generating stable revenue by entering into long-term coal
    sales contracts
.  We intend to continue to enter
    into long-term coal sales contracts for substantially all of our
    annual coal production, which will reduce our exposure to
    fluctuations in the market prices. We believe our senior
    management's longstanding relationships within our industry
    will allow us to continue to obtain long-term contracts for
    substantially all of our production. We believe our long-term
    coal sales contracts provide us with a reliable and stable
    revenue base, and we intend to seek cost pass through or
    inflation adjustment provisions in our long-term coal sales
    contracts to mitigate our exposure to rising costs.
•
Continuing to grow our reserve base and production
    capacity
.  We intend to continue to grow our
    reserve base by acquiring reserves with low operational,
    geologic and regulatory risks that we can mine economically and
    that are located near our mining operations or otherwise have
    the potential to serve our primary market area. We are focused
    primarily on acquisitions that are consistent with our target
    customer base in terms of location and coal quality. We believe
    this strategy will allow us to expand our presence in our
    primary market area, target new customers and increase our
    annual coal production. We believe that our existing
    relationships with owners of large reserve blocks and our
    position as the largest producer of surfaced mined coal in Ohio
    will allow us to acquire additional reserves in the future. We
    intend to continue to grow our production capacity by expanding
    our fleet of large scale equipment and opening new mines as our
    sales commitments increase over time.
101
Table of Contents
Competitive
    Strengths
We believe the following competitive strengths will enable us to
    execute our business strategies successfully:
•
We have an attractive portfolio of long-term coal sales
    contracts
.  We believe our long-term coal sales
    contracts provide us with a reliable and stable revenue base. We
    currently have long-term coal sales contracts in place for 2010,
    2011, 2012 and 2013 that represent 97.2%, 93.0%, 71.4% and
    39.7%, respectively, of our 2010 estimated coal sales of
    8.5 million tons. A majority of our estimated annual coal
    production for 2010 will be delivered to utilities that are
    investment grade. Our long-term coal sales contracts typically
    contain full or partial cost pass through or inflation
    adjustment provisions that provide some protection in rising
    operating cost environments. Members of our senior management
    team have long-standing relationships within our industry, and
    we believe those relationships will allow us to continue to
    obtain long-term contracts for substantially all of our
    production.
•
We have a successful history of growing our reserve base and
    production capacity
.  Historically, we have been
    successful at replacing the reserves depleted by our annual
    production and growing our reserve base by acquiring reserves
    with low operational, geologic and regulatory risks and that are
    located near our mining operations or that otherwise have the
    potential to serve our primary market area. We have also been
    successful in growing our production capacity by expanding our
    fleet of large scale equipment and opening new mines to meet our
    sales commitments. Over the last five years, we have produced
    23.6 million tons of coal and acquired 52.9 million
    tons of proven and probable coal reserves, including
    24.6 million tons of coal reserves that we acquired in
    connection with the Phoenix Coal acquisition. As a result of the
    Phoenix Coal acquisition and production increases in Ohio, our
    coal production for the fourth quarter of 2009 on an annualized
    basis was 7.2 million tons, an increase of 41% over our
    actual 2008 production.
•
Our mining operations are flexible and
    diverse
.  During the fourth quarter of 2009, our
    largest mine represented 12.5% of our coal production. We
    currently have 19 active surface mines that are managed as eight
    mining complexes. This diversity reduces the risk that
    operational or production issues at any one mine will have a
    material impact on our business or our results of operations.
    Consistent coal quality across many of our mines and the
    mobility of our equipment fleet allows us to reliably serve our
    customers from multiple mining complexes while optimizing our
    mining plan. Additionally, we have the flexibility to add mining
    hours to our work week, which allows us to respond to increasing
    customer demand and to compensate for unexpected disruptions at
    any one mine by increasing the production at other mines. Our
    operations also include two river terminals, strategically
    located in eastern Ohio and western Kentucky, that enhance our
    ability to supply coal to our customers with river access from
    multiple mines. Our river terminals also give us access to power
    plants in our primary market area that receive coal by barge,
    which is the lowest cost coal transportation alternative.
•
We are a low cost producer of coal
.  We use
    efficient mining practices that take advantage of economies of
    scale and reduce operating costs per ton. For example, in
    Northern Appalachia we operate some of the largest mobile
    equipment in use east of the Mississippi River. The productive
    capacity of this equipment helps us to maintain low overburden
    removal costs and allows us to mine coal reserves that are not
    efficiently mineable with smaller equipment. Our use of large
    scale equipment, our good labor relations with our non-union
    workforce, our employees' expertise and knowledge of our
    mining practices, our low level of legacy liabilities and our
    history of acquiring reserves without large up-front capital
    investments have positioned us as one of the lowest cash cost
    coal producers in Northern Appalachia. In addition, we are in
    the process of deploying the same mining practices that we
    currently use in Ohio at the mines that we acquired as part of
    the Phoenix Coal acquisition.
•
Both production of, and demand for, the coal we produce are
    expected to increase in our primary market
    area
.  According to the EIA, production of coal in
    Northern Appalachia and the Illinois
102
Table of Contents
Basin is expected to increase by 29.2% and 33.1% through 2015,
    respectively. This compares to an expected increase in total
    coal production in the United States of 6.7% over the same
    period. According to the EIA, this expected increase in coal
    production in Northern Appalachia and the Illinois Basin is
    attributable to anticipated increases in demand for high-sulfur
    coal from scrubbed power plants. The EIA also forecasts
    increased demand from consumers of Central Appalachia coal as
    coal production in that region continues to decline.
•
Our senior management team and key operational employees have
    extensive industry experience
.  The members of our
    senior management team have, on average, 24 years of
    experience in the coal industry and have a track record of
    acquiring, building and operating businesses profitably and
    safely. In addition, our key operational employees have
    extensive mining experience and have been with us for an average
    of 22 years. We believe our operational employees are one
    of the key strengths to our business because their knowledge and
    skills allow us to operate our mines in a safe and efficient
    manner.
•
We have a strong safety and environmental
    record
.  We operate some of the industry's
    safest mines. Over the last four years, our MSHA reportable
    incident rate was on average 14.4% lower than the rate for all
    surface coal mines in the United States. In addition, we are
    committed to maintaining a system that controls and reduces the
    environmental impacts of mining operations. We have won numerous
    awards for our strong safety and environmental record. In
    January 2010, the West Virginia Coal Association awarded us
    their Surface Mine North Award for our past reclamation efforts
    in West Virginia. In addition, in 2008 the Appalachian Regional
    Reforestation Initiative awarded us their Regional Award for
    Excellence in Reforestation for exemplary performance using the
    forestry reclamation approach for reclaiming coal mined lands.
Our
    History
We are a Delaware limited partnership that was formed in August
    2007 by AIM and our founders, Charles C. Ungurean, the President
    and Chief Executive Officer of our general partner and a member
    of the board of directors of our general partner, and Thomas T.
    Ungurean, the Senior Vice President, Equipment, Procurement and
    Maintenance of our general partner. Each of our two founders has
    over 37 years of experience in the coal mining industry. In
    connection with our formation, our founders contributed all of
    their interests in Oxford Mining Company to us.
Our founders formed Oxford Mining Company in 1985 to provide
    contract mining services to a mining division of a major oil
    company. In 1989, our founders transitioned Oxford Mining
    Company from a contract miner into a producer of its own coal
    reserves. In January 2007, Oxford Mining Company entered into a
    joint venture, Harrison Resources, with a subsidiary of CONSOL
    Energy to mine surface coal reserves purchased from CONSOL
    Energy.
In September 2009, we completed the acquisition of Phoenix
    Coal's active surface mining operations. The Phoenix Coal
    acquisition provided us with an entry into the Illinois Basin in
    western Kentucky and included one mining complex comprised of
    four mines as well as the Island river terminal on the Green
    River in western Kentucky. In connection with this acquisition,
    we increased our total proven and probable coal reserves by
    24.6 million tons.
Our
    Sponsors
AIM is a private investment firm specializing in natural
    resources, infrastructure and real property. AIM, along with
    certain of the funds that AIM advises, indirectly owns all of
    the ownership interests in AIM Oxford. Certain directors of our
    general partner are principals of AIM and have ownership
    interests in AIM. After completion of this offering, AIM Oxford
    will continue to hold 66.3% of the ownership interests in our
    general partner and will hold     % of
    our common units and     % of our
    subordinated units (     % of our total
    units).
103
Table of Contents
C&T Coal is owned by our founders, Charles C. Ungurean and
    Thomas T. Ungurean. After completion of this offering, C&T
    Coal will continue to hold 33.7% of the ownership interests in
    our general partner and will hold     %
    of our common units and     % of our
    subordinated units (     % of our total
    units).
In connection with the contribution of Oxford Mining Company to
    us in August 2007, C&T Coal, Charles C. Ungurean and Thomas
    T. Ungurean agreed that they would not compete with us in the
    coal mining business in Illinois, Kentucky, Ohio, Pennsylvania,
    West Virginia and Virginia. This non-compete agreement is in
    effect until August 24, 2014.
Mining
    Operations
We currently have 19 active surface mines that are managed
    as eight mining complexes. We define a mining complex as a group
    of mines that are located in close proximity to each other or
    that routinely sell coal to the same customer. Our
    transportation facilities include two river terminals and two
    rail loading facilities. Our mining facilities include two wash
    plants, six blending facilities and nine crushing facilities.
Our surface mining operations use area, contour, auger and
    highwall mining methods. Our area mining operations use
    truck/shovel and truck/loader equipment fleets along with large
    dozers. Our contour mining operations use truck/loader equipment
    fleets and large dozers. We own and operate seven augers and
    move these machines between mining complexes as needed. We
    currently own and utilize one Superior highwall miner at our
    Tuscarawas County mining complex, and a third party contractor
    operates one Superior highwall miner at our Belmont County
    mining complex. Both highwall miners are mobile and are moved
    among our mining complexes as necessary.
In Northern Appalachia we operate large electric and hydraulic
    shovels matched with a fleet of 240-ton haul trucks and 200-ton
    haul trucks, which are some of the largest in use east of the
    Mississippi River. We also deploy a fleet of over 65 large
    Caterpillar D-11 and similar class dozers. We employ preventive
    maintenance and rebuild programs to ensure that our equipment is
    well-maintained. The rebuild programs are performed by
    third-party contractors. We assess the equipment utilized in our
    mining operations on an ongoing basis and replace it with new,
    more efficient units on an as-needed basis.
Our transportation facilities include our Bellaire river
    terminal that is located on the Ohio River in eastern Ohio, our
    Cadiz rail loadout facility located on the Ohio Central Railroad
    near Cadiz, Ohio, our New Lexington rail facility located on the
    Ohio Central Railroad in Perry County, Ohio and our Island river
    terminal and transloading facility located on the Green River in
    western Kentucky. Our Bellaire river terminal, which is located
    on the Ohio River in Bellaire, Ohio, has an annual throughput
    capacity of over 4 million tons with a sustainable barge
    loading rate of 2,000 tons per hour. The barge harbor for this
    terminal can simultaneously hold up to 25 loaded barges and 30
    empty barges. We control our Bellaire river terminal through a
    long-term lease agreement with a third party, and we have
    11 years remaining on this lease. We own our Island river
    terminal and transloading facility that is located on the Green
    River in western Kentucky. Our Island river terminal has an
    annual throughput capacity of approximately 3 million tons
    with a sustainable barge loading rate of 1,500 tons per hour.
Depending on coal quality and customer requirements, in most
    cases our coal is crushed and shipped directly from our mines to
    our customers. However, blending different types or grades of
    coal may be required from time to time to meet the coal quality
    and specifications of our customers. Coal of various sulfur and
    ash contents can be mixed or "blended" to meet the
    specific combustion and environmental needs of customers.
    Blending is typically done at one of our six blending facilities:
•
our Barb Tipple blending and coal crushing facility that is
    adjacent to one of our customer's power plants near
    Coshocton, Ohio;
•
our Strasburg wash plant near Strasburg, Ohio;
•
our Bellaire river terminal on the Ohio River;
•
our Island river terminal on the Green River in western Kentucky;
104
Table of Contents
•
our Stonecreek coal crushing facility located in Tuscarawas
    County, Ohio; and
•
our Schoate wash plant located in Muhlenberg County, Kentucky.
[Map to come]
Northern
    Appalachia
We operate seven surface mining complexes in Northern
    Appalachia, substantially all of which are located in eastern
    Ohio. For the year ended December 31, 2009, our mining
    complexes in Northern Appalachia produced an aggregate of
    5.4 million tons of steam coal. The following table
    provides summary information regarding our mining complexes in
    Northern Appalachia as of December 31, 2009:
Number
Tons Produced
Transportation Facilities Utilized
Transportation
of Active
for the Year Ended December 31,
Mining Complex
River Terminal
Rail Loadout
Method
(1)
Mines
2007
2008
2009
(in millions)
Cadiz
Bellaire
Cadiz
Barge, Rail
2
1.1
1.4
1.1
Tuscarawas County
—
—
Truck
4
1.1
1.0
0.9
Belmont County
Bellaire
—
Barge
4
0.8
0.9
1.3
Plainfield
—
—
Truck
1
0.3
0.5
0.5
New Lexington
—
New Lexington
Rail
1
0.6
0.7
0.6
Harrison
(2)
Bellaire
Cadiz
Barge, Rail, Truck
1
0.2
0.4
0.7
Noble County
Bellaire
—
Barge, Truck
2
0.2
0.2
0.3
Total
15
4.3
5.1
5.4
(1)
Barge means transported by truck to our Bellaire river terminal
    and then transported to the customer by barge. Rail means
    transported by truck to a rail facility and then transported to
    the customer by rail. Truck means transported to the customer by
    truck.
(2)
The Harrison mining complex is owned by Harrison Resources, our
    joint venture with CONSOL Energy. We own 51% of Harrison
    Resources and CONSOL Energy owns the remaining 49% through one
    of its subsidiaries. Because the results of operations of
    Harrison Resources are included in our consolidated financial
    statements for the year ended December 31, 2009 as required
    by GAAP, coal production attributable to the Harrison mining
    complex is presented on a gross basis assuming we owned 100% of
    Harrison Resources. Please read "— Harrison
    Mining Complex."
Cadiz Mining Complex.
The Cadiz mining complex
    is located in Harrison County, Ohio and includes reserves
    located in Jefferson County, Ohio and Washington County,
    Pennsylvania and consists of the Daron and County Road 29 mines.
    We began our mining operations at this mining complex in 2000.
    Operations at the Cadiz mining complex target the
    Pittsburgh #8, Redstone #8A and Meigs Creek #9
    coal seams. As of December 31, 2009, the Cadiz mining
    complex included 12.4 million tons of proven and probable
    coal reserves. The infrastructure at this mining complex
    includes a coal crusher, a truck scale and the Cadiz rail
    loadout. Coal produced from the Cadiz mining complex is trucked
    either to our Bellaire river terminal on the Ohio River and then
    transported by barge to the customer, or trucked to our Cadiz
    rail loadout facility on the Ohio Central Railroad and then
    transported by rail to the customer. This mining complex uses
    area and auger methods of surface mining. This mining complex
    produced 1.1 million tons of coal for the year ended
    December 31, 2009.
Tuscarawas County Mining Complex.
The
    Tuscarawas County mining complex is located in Tuscarawas,
    Columbiana and Stark Counties, Ohio, and consists of the
    Stonecreek, Stillwater, Chumney and Strasburg mines. We began
    our mining operations at this mining complex in 2003. Operations
    at this mining complex target the Brookville #4, Lower
    Kittanning #5, Middle Kittanning #6, Upper
    Freeport #7 and Mahoning #7A coal seams. As of
    December 31, 2009, the Tuscarawas County mining complex
    included 8.8 million tons of proven and probable coal
    reserves. The infrastructure at this mining complex includes two
    coal crushers with truck scales and the Strasburg wash plant.
    Coal produced from the Tuscarawas County
105
Table of Contents
mining complex is trucked directly to our customers, our Barb
    Tipple blending and coal crushing facility or our Strasburg wash
    plant. Coal trucked to our Barb Tipple blending and coal
    crushing facility or our Strasburg wash plant is then
    transported by truck to the customer after processing is
    completed. This mining complex uses the area, contour, auger and
    highwall miner methods of surface mining. This mining complex
    produced 0.9 million tons of coal for the year ended
    December 31, 2009.
Belmont County Mining Complex.
The Belmont
    County mining complex is located in Belmont County, Ohio, and
    consists of the Lafferty, Boswell, Flushing and Wheeling Valley
    mines. We began our mining operations at this mining complex in
    1999. Operations at the Belmont County mining complex target the
    Pittsburgh #8 and Meigs Creek #9 coal seams. As of
    December 31, 2009, the Belmont County mining complex
    included 6.6 million tons of proven and probable coal
    reserves. Coal produced from the Belmont County mining complex
    is primarily transported by truck to our Bellaire river terminal
    on the Ohio River. Coal produced from this mining complex is
    crushed and blended at the Bellaire river terminal before it is
    loaded onto barges for shipment to our customers on the Ohio
    River. This mining complex uses area, contour, auger and
    highwall miner methods of surface mining. This mining complex
    produced 1.3 million tons of coal for the year ended
    December 31, 2009.
Plainfield Mining Complex.
The Plainfield
    mining complex is located in Muskingum, Guernsey and Coshocton
    Counties, Ohio, and consists of the Plainfield mine. We began
    our mining operations at this mining complex in 1990. Operations
    at the Plainfield mining complex target the Middle
    Kittanning #6 coal seam. As of December 31, 2009, the
    Plainfield mining complex included 6.4 million tons of
    proven and probable coal reserves. The infrastructure at this
    mining complex includes our Barb Tipple blending and coal
    crushing facility. Substantially all of the coal we produce from
    the Plainfield mining complex is sold to AEP. The majority of
    the coal produced from the Plainfield mining complex is trucked
    to our Barb Tipple facility for crushing and blending or
    directly to AEP's Conesville generating station. Coal
    trucked to our Barb Tipple facility is transported by truck to
    AEP after processing is completed. Some of the coal production
    from this mining complex is trucked to our Strasburg wash plant
    and then transported by truck to the customer. This mining
    complex uses contour, auger and highwall miner methods of
    surface mining. This mining complex produced 0.5 million
    tons of coal for the year ended December 31, 2009.
New Lexington Mining Complex.
The New
    Lexington mining complex is located in Perry, Athens and Morgan
    Counties, Ohio, and consists of the New Lexington mine. We began
    our mining operations at this mining complex in 1993. Operations
    at the New Lexington mining complex target the Lower
    Kittanning #5 and Middle Kittanning #6 coal seams. As
    of December 31, 2009, the New Lexington mining complex
    included 4.9 million tons of proven and probable coal
    reserves. The infrastructure at this mining complex includes a
    coal crusher, a truck scale and the New Lexington rail loadout.
    Coal produced from the New Lexington mining complex is delivered
    via-off highway trucks to our New Lexington rail loadout
    facility on the Ohio Central Railroad where it is then
    transported by rail to the customer. This mining complex uses
    the area method of surface mining. This mining complex produced
    0.6 million tons of coal for the year ended
    December 31, 2009.
Harrison Mining Complex.
The Harrison mining
    complex is located in Harrison County, Ohio, and consists of the
    Harrison mine. Mining operations at this mining complex began in
    2007. The Harrison mining complex is owned by Harrison
    Resources. We own 51% of Harrison Resources and CONSOL Energy
    owns the remaining 49% indirectly through one of its
    subsidiaries. We entered into this joint venture in 2007 to mine
    coal reserves purchased from CONSOL Energy. We manage all of the
    operations of, and perform all of the contract mining and
    marketing services for, Harrison Resources. Because the results
    of operations of Harrison Resources are included in our
    consolidated financial statements for the year ended
    December 31, 2009 as required by GAAP, coal production and
    proven and probable coal reserves attributable to the Harrison
    mining complex are presented on a gross basis assuming we owned
    100% of Harrison Resources.
Since its formation in 2007, Harrison Resources has acquired
    3.5 million tons of proven and probable coal reserves from
    CONSOL Energy. We believe that CONSOL Energy controls additional
    reserves in Harrison County, Ohio, that could be acquired by
    Harrison Resources in the future. However, CONSOL
106
Table of Contents
Energy has no obligation to sell those reserves to Harrison
    Resources, and we cannot assure you that Harrison Resources
    could acquire those reserves from CONSOL Energy on acceptable
    terms.
Operations at the Harrison mining complex target the
    Pittsburgh #8, Redstone #8A and Meigs Creek #9
    coal seams. As of December 31, 2009, the Harrison mining
    complex included 2.8 million tons of proven and probable
    coal reserves. The infrastructure at this mining complex
    includes a coal crusher and a truck scale. Coal produced from
    the Harrison mining complex is trucked to our Bellaire river
    terminal, our Cadiz rail loadout facility or directly to
    customers. Coal trucked to our Bellaire river terminal is
    transported to the customer by barge and coal trucked to our
    Cadiz rail loadout facility is transported to the customer by
    rail. This mining complex uses the area method of surface
    mining. This mining complex produced 0.7 million tons of
    coal for the year ended December 31, 2009.
Noble County Mining Complex.
The Noble County
    mining complex is located in Noble and Guernsey Counties, Ohio,
    and consists of the Long-Sears and Hall's Knob mines. We
    began our mining operations at this mining complex in 2006.
    Operations at the Noble County mining complex target the
    Pittsburgh #8 and Meigs Creek #9 coal seams. As of
    December 31, 2009, the Noble County mining complex included
    2.5 million tons of proven and probable coal reserves. Coal
    produced from the Noble County mining complex is trucked to our
    Bellaire river terminal on the Ohio River or to our Barb Tipple
    facility. Coal trucked to our Bellaire river terminal is then
    transported by barge to the customer. Coal trucked to our Barb
    Tipple blending and coal crushing facility is transported by
    truck to the customer after processing is completed. This mining
    complex uses the area, contour and auger methods of surface
    mining. This mining complex produced 0.3 million tons of
    coal for the year ended December 31, 2009.
Illinois
    Basin
We operate one surface mining complex in the Illinois Basin,
    which is located in western Kentucky. We acquired this operation
    from Phoenix Coal on September 30, 2009. For the period
    beginning on October 1, 2009 and ending on
    December 31, 2009, this mining complex produced an
    aggregate of 0.4 million tons of steam coal. The following
    table provides summary information regarding our mining complex
    in the Illinois Basin as of December 31, 2009:
Transportation
Tons Produced for
Facilities Utilized
the Year Ended
River
Rail
Transportation
Number of
December 31,
Mining Complex
Terminal
Loadout
Method
(1)
Active Mines
2009
(2)
Muhlenberg County
Island
—
Barge, Truck
4
0.4
(1)
Barge means transported by truck to our Island river terminal
    and then transported to the customer by barge. Truck means
    transported to customer by truck.
(2)
Acquired in the Phoenix Coal acquisition that occurred on
    September 30, 2009. As a result, production data is limited
    to the fourth quarter of 2009.
Muhlenberg County Mining Complex.
The
    Muhlenberg County mining complex is located in Muhlenberg and
    McClean Counties, which is in western Kentucky, and consists of
    the Schoate/431, Winn, Jessup and KO mines. We began our mining
    operations at this mining complex in October 2009. Operations at
    the Muhlenberg County mining complex target
    the #5, #6, #9, #10, #11, #12
    and #13 coal seams of the Illinois Basin. As of
    December 31, 2009, the Muhlenberg County mining complex
    included 24.2 million tons of proven and probable coal
    reserves. The infrastructure at this mining complex includes the
    Schoate wash plant, the Winn, Jessup, and KO coal crushers and
    our Island river terminal. Coal produced from this mining
    complex is usually crushed at the mine site and then trucked to
    our Island river terminal on the Green River or directly to the
    customer. Coal trucked to our Island river terminal is then
    transported to the customer by barge. Some of the production
    from this mining complex is washed at our Schoate wash plant
    prior to being transported either by truck directly to the
    customer, or by truck to our Island river terminal and then
    transported by barge to the customer. This mining complex uses
    the area method of surface mining. This mining complex produced
    0.4 million tons of steam coal during the fourth quarter of
    2009.
107
Table of Contents
Coal
    Reserves
The estimates of our proven and probable reserves associated
    with our surface mining operations in Ohio are derived from our
    internal estimates, which estimates were audited by John T.
    Boyd Company, an independent mining and geological consulting
    firm.  The estimates of our proven and probable reserves
    associated with our surface mining operations in the Illinois
    Basin and our proven and probable underground coal reserves are
    derived from reserve reports prepared by John T. Boyd
    Company. These estimates are based on geologic data, economic
    data such as cost of production and projected sale prices and
    assumptions concerning permitability and advances in mining
    technology. Our coal reserves are reported as "recoverable
    coal reserves," which is the portion of the coal that could
    be economically and legally extracted or produced at the time of
    the reserve determination, taking into account mining recovery
    and preparation plant yield. These estimates are periodically
    updated to reflect past coal production, new drilling
    information and other geologic or mining data. Acquisitions or
    dispositions of coal properties will also change these
    estimates. Changes in mining methods may increase or decrease
    the recovery basis for a coal seam, as will changes in
    preparation plant processes. We maintain reserve information in
    secure computerized databases, as well as in hard copy. The
    ability to update or modify the estimates of our coal reserves
    is restricted to our engineering group and the modifications are
    documented.
"Reserves"
are defined by SEC Industry Guide 7
    as that part of a mineral deposit which could be economically
    and legally extracted or produced at the time of the reserve
    determination. Industry Guide 7 divides reserves between
    "proven (measured) reserves" and "probable
    (indicated) reserves," which are defined as follows:
•
"Proven (Measured) Reserves."
Reserves for
    which (a) quantity is computed from dimensions revealed in
    outcrops, trenches, workings or drill holes; and grade
and/or
quality are computed from the results of detailed sampling and
    (b) the sites for inspection, sampling and measurement are
    spaced so closely and the geologic character is so well defined
    that size, shape, depth and mineral content of reserves are
    well-established.
•
"Probable (Indicated) Reserves."
Reserves for
    which quantity and grade
and/or
quality are computed from information similar to that used for
    proven (measured) reserves, but the sites for inspection,
    sampling, and measurement are farther apart or are otherwise
    less adequately spaced. The degree of assurance, although lower
    than that for proven (measured) reserves, is high enough to
    assume continuity between points of observation.
As of December 31, 2009, all of our proven and probable
    coal reserves were "assigned" reserves, which are coal
    reserves that can be mined without a significant capital
    expenditure for mine development.
As of December 31, 2009, we owned 17.4% of our coal
    reserves and leased 82.6% of our coal reserves from various
    third-party landowners. The majority of our leases have terms
    denominated in years and we believe that the term of years will
    allow the recoverable coal reserves to be fully extracted in
    accordance with our projected mining plan. Some of our leases
    have an initial term denominated in years but also provide for
    the term of the lease to continue until exhaustion of the
    "mineable and merchantable" coal in the lease area so
    long as we comply with the terms of the lease.
It generally takes us from 12 to 30 months to obtain a
    SMCRA permit. Permits are issued for an initial five year term
    and must be renewed if mining is to continue after the end of
    the term. We submit and obtain new mining permits on a
    continuing basis to replace existing permits as they are
    depleted. Based on our current surface mining plan, we have
    proven and probable coal reserves with active permits that will
    allow us to mine for approximately the next three years. We do
    not expect to have any material delays in obtaining or renewing
    permits on our remaining coal reserves associated with our
    mining operations.
108
Table of Contents
The following table provides information as of December 31,
    2009 on the location of our operations and the amount and
    ownership of our coal reserves:
Total Tons of Proven and Probable Coal
    Reserves
(1)
Mining Complex
Total
Owned
Leased
(in million tons)
Surface Mining Operations:
Northern Appalachia (principally Ohio)
Cadiz
12.4
7.5
4.9
Tuscarawas
8.8
0.1
8.7
Belmont County
6.6
1.9
4.7
Plainfield
6.4
0.7
5.7
New Lexington
4.9
2.8
2.1
Harrison
(2)
2.8
2.8
—
Noble County
2.5
0.1
2.4
Total Northern Appalachia
44.4
15.9
28.5
Illinois Basin (Kentucky)
Muhlenberg County
24.2
—
24.2
Total Illinois Basin
24.2
—
24.2
Total Surface Mining Operations
68.6
15.9
52.7
Underground Coal Reserves:
Tusky
(3)
23.0
—
23.0
Total Underground Coal Reserves
23.0
—
23.0
Total
91.6
15.9
75.7
Percentage of Total
100
%
17.4
%
82.6
%
(1)
Reported as recoverable coal reserves. All proven and probable
    coal reserves are "assigned" coal reserves, which are
    coal reserves that can be mined without a significant capital
    expenditure for mine development.
(2)
The Harrison mining complex is owned by Harrison Resources. We
    own 51% of Harrison Resources and CONSOL Energy owns the
    remaining 49% through one of its subsidiaries. Because the
    results of operations of Harrison Resources are included in our
    consolidated financial statements for the year ended
    December 31, 2009 as required by GAAP, proven and probable
    coal reserves attributable to the Harrison mining complex are
    presented on a gross basis assuming we owned 100% of Harrison
    Resources. Please read "— Mining
    Operations — Northern Appalachia — Harrison
    Mining Complex."
(3)
Please read "— Underground Coal Reserves"
    for more information about our underground coal reserves at the
    Tusky mining complex, which we have leased to a third party in
    exchange for royalty payments. During 2009, we received royalty
    payments on 0.6 million tons of coal produced from the
    Tusky mining complex.
109
Table of Contents
The following table provides information on particular
    characteristics of our coal reserves as of December 31,
    2009:
As received
    Basis
(1)
# of
Proven and Probable Coal Reserves
SO2/mm
Sulfur
    Content
(1)
Mining Complex
% Ash
% Sulfur
Btu/lb.
Btu
Total
<2%
2-4%
>4%
(in million tons)
Surface Mining Operations:
Northern Appalachia (principally Ohio)
Cadiz
11.6
3.3
11,520
5.7
12.4
1.1
6.1
5.2
Tuscarawas County
10.5
3.7
11,570
6.3
8.8
1.6
3.5
3.7
Belmont County
12.6
3.7
11,510
6.4
6.6
—
4.6
2.0
Plainfield
10.7
4.4
11,350
7.7
6.4
—
0.7
5.7
New Lexington
11.1
4.0
11,260
7.1
4.9
—
2.0
2.9
Harrison
(2)
11.9
1.8
12,040
3.0
2.8
2.1
0.7
—
Noble County
13.2
4.7
11,230
8.4
2.5
—
0.3
2.2
Illinois Basin (Kentucky)
Muhlenberg County
11.2
3.6
11,295
6.4
24.2
—
23.0
1.2
Underground Coal Reserves:
Tusky
(3)
5.4
2.1
12,900
3.3
23.0
3.8
19.2
—
(1)
As received represents an analysis of a sample as received at a
    laboratory operated by a third party.
(2)
The Harrison mining complex is owned by Harrison Resources. We
    own 51% of Harrison Resources and CONSOL Energy Inc owns the
    remaining 49% through one of its subsidiaries. Because the
    results of operations of Harrison Resources are included in our
    consolidated financial statements for the year ended
    December 31, 2009 as required by U.S. generally accepted
    accounting principles, proven and probable coal reserves
    attributable to the Harrison mining complex are presented on a
    gross basis assuming we owned 100% of Harrison Resources. Please
    read "— Mining Operations — Northern
    Appalachia — Harrison Mining Complex."
(3)
Please read "— Underground Coal Reserves"
    for more information about our underground coal reserves at the
    Tusky mining complex, which we have leased to a third party in
    exchange for royalty payments. During 2009, we received royalty
    payments on 0.6 million tons of coal produced from the
    Tusky mining complex.
Underground
    Coal Reserves
We originally leased our underground coal reserves from a third
    party in 2003 in exchange for a royalty based on tonnage sold.
    We began our underground mining operation in late 2003. In June
    2005, we sold the Tusky mining complex, and we subleased our
    underground coal reserves associated with that complex to the
    purchaser in exchange for an overriding royalty. Our overriding
    royalty is equal to a percentage of the sales price received by
    our sublessee for the coal produced from our underground coal
    reserves. In addition, our sublessee is obligated to pay the
    royalty we owe to our lessor. We have at least 15 years
    remaining on the lease for our underground coal reserves, and
    our sublessee has at least 15 years remaining on its
    sublease from us.
Reclamation
We are committed to minimizing our environmental impact during
    the mining process. However, there is always some degree of
    impact. To minimize the long-term environmental impact of our
    mining activities, we plan and monitor each phase of our mining
    projects as well as our post-mining reclamation efforts. As of
    December 31, 2009, we had approximately $31.3 million
    in surety bonds outstanding to secure the performance of our
    reclamation obligations, which were supported by approximately
    $6.9 million in letters of
110
Table of Contents
credit. In addition to providing surety bonds, we have also made
    a significant investment to complete the required reclamation
    activities in a timely and professional manner to cause our
    surety bonds to be released. We have historically performed, and
    expect to continue to perform, reclamation activities on a
    continuous basis as our mining activities progress.
Over 95% of our active surface mining permits are associated
    with reserves that were mined by other coal producers prior to
    the implementation of SMCRA. We are able to economically mine
    these reserves due to increased coal pricing and improved mining
    technologies compared to the pre-SMCRA period. Reclamation
    standards prior to SMCRA were considerably lower than
    today's standards. These pre-SMCRA mining areas have
    unreclaimed highwalls and often have water quality or vegetation
    deficiencies. Our mining activities not only recover coal that
    was left behind by previous operators, but also significantly
    reduce the environmental and safety hazards created by their
    mining activities. Although we have reclamation obligations with
    respect to these pre-SMCRA mining areas, these obligations are
    typically no greater than the reclamation obligations for newly
    mined reserves.
Surface or groundwater that comes in contact with materials
    resulting from mining activities can become acidic and contain
    elevated levels of dissolved metals, a condition referred to as
    AMD. We have seven mining permits that are identified on
    Ohio's Inventory of Long-Term AMD sites. Only one of these
    sites, associated with the Strasburg wash plant, requires
    continuous AMD treatment, for which we have estimated the
    present value of the projected annual treatment cost at less
    than $10,000 per year. While we anticipate that AMD treatment
    will not be required once reclamation is completed, it is
    possible that AMD treatment will be required for some time and
    current AMD treatment costs could escalate due to changes in
    flow or water quality. One site on the AMD Inventory List has
    been recommended by Ohio for removal from the AMD Inventory List
    and the remaining sites are being monitored to assess long-term
    AMD treatment issues. Moreover, we anticipate that one of these
    sites being monitored will receive final surety bond release in
    2010 and will be removed from the AMD Inventory List.
Limestone
At our Cadiz mining complex, we remove limestone in order to
    mine the underlying coal. We sell this limestone to a third
    party that crushes and processes the limestone before it is sold
    to local governmental authorities, construction companies and
    individuals. The third party pays us for this limestone based on
    a percentage of the revenue it receives from sales of this
    limestone. Our revenues for the year ended December 31,
    2009 include $1.4 million in limestone sales.
In 2009, we produced 0.5 million tons of limestone. Based
    on estimates from our internal engineers, our Cadiz mining
    complex includes 8.0 million tons of proven and probable
    limestone reserves as of December 31, 2009. All of these
    limestone reserves were assigned reserves, which are limestone
    reserves that can be recovered without a significant capital
    expenditure for mine development.
Other
    Operations
During 2009, we generated $1.3 million of revenue from a
    variety of services we perform in connection with our surface
    mining operations. This revenue included the following:
•
services fees we earn for operating a transloader for a third
    party that offloads coal from railcars on the Ohio Central
    Railroad at one of our customer's power plants;
•
service fees we earn for providing operational services for
    Tunnel Hill Partners, LP, an entity owned by our sponsors that
    owns a landfill; and
•
service fees we earn for hauling and disposing of ash at a third
    party landfill for two municipal utilities.
For more information regarding our relationships and our
    sponsors' relationships with Tunnel Hill Partners, please
    read "Certain Relationships and Related Party
    Transactions."
111
Table of Contents
Customers
General
We market the majority of the coal we produce to base-load power
    plants in our six-state market area under long-term coal sales
    contracts. Our primary customers are major electric utilities,
    municipalities and cooperatives and industrial customers. For
    the year ended December 31, 2009, we derived 70% of our
    revenues from coal sales to electric utilities (including sales
    through brokers), 19% of our revenues from coal sales to
    municipalities and cooperatives, 9% of our revenues from coal
    sales to industrial customers and 2% of our revenues from a
    mixture of sales of non-coal material such as limestone, royalty
    payments on our underground coal reserves and fees for services
    we perform for third parties.
Long-Term
    Coal Sales Contracts
For the year ended December 31, 2009, we generated
    approximately 95.8% of our revenues from coal delivered under
    our long-term coal sales contracts, and we expect to continue
    selling a significant portion of our coal under long-term coal
    sales contracts in the future. We define long-term contracts as
    those with a term of one year or longer and our long-term coal
    sales contracts typically have terms ranging from one to eight
    years. For 2010, 2011, 2012 and 2013, we currently have
    long-term coal sales contracts that represent 97.2%, 93.0%,
    71.4% and 39.7%, respectively, of our 2010 estimated coal sales
    of 8.5 million tons. During 2010, 2011, 2012 and 2013, we
    have committed to deliver 8.2 million tons,
    7.9 million tons, 6.1 million tons and
    3.4 million tons of coal, respectively, under long-term
    coal sales contracts. These amounts include contracts with
    re-openers as described below. In addition, one of our long-term
    coal sales contracts that ends in 2012 can be extended by the
    customer for two additional three-year terms. If this customer
    elects to extend this contract, we will be committed to deliver
    an additional 2.0 million tons in 2013, and our 2013 coal
    sales under long-term coal sales contracts, as a percentage of
    2010 estimated coal sales, would increase to 63.3%.
The terms of our coal sales contracts result from competitive
    bidding and negotiations with customers. As a result, the terms
    of these agreements — including price re-openers, coal
    quality requirements, quantity parameters, permitted sources of
    supply, effects of future regulatory changes, extension options,
    force majeure, termination and assignment provisions —
    vary by customer. However, most of our long-term coal sales
    contracts have full or partial cost pass through provisions or
    inflation adjustment provisions. For 2010, 2011, 2012 and 2013,
    61%, 72%, 80% and 100% of the coal, respectively, that we have
    committed to deliver under our long-term coal sales contracts
    are subject to full or partial cost pass through or inflation
    adjustment provisions. Cost pass through provisions increase or
    decrease our coal sales price for all or a specified percentage
    of changes in the cost of fuel, explosives and, in certain
    cases, labor. Inflation adjustment provisions adjust the initial
    contract price over the term of the contract either by a
    specific percentage or a percentage determined by reference to
    various inflation related indices.
Two of our long-term coal sales contracts have price re-openers
    that provide for market-based adjustments to the initial price
    every three years. These contracts will terminate if we cannot
    agree upon a market-based price with the customer. For 2011,
    2012 and 2013, 0.4 million tons, 0.4 million tons and
    0.6 million tons of coal, respectively, that we have
    committed to deliver under our long-term coal sales contracts
    are subject to price re-opener provisions.
Certain of our long-term coal sales contracts give the customer
    the option to elect to purchase additional tons in the future at
    a fixed price. Our long-term coal sales contracts that contain
    these option tons typically require the customer to provide us
    with six months advance notice of an election for option tons.
    For 2010, 2011 and 2012, we have outstanding option tons of
    0.7 million, 1.0 million and 0.7 million,
    respectively. If our customers do elect to receive these option
    tons, we believe we will have the operating flexibility to meet
    these requirements through increased production.
Quality and volumes for the coal are stipulated in our coal
    sales contracts, and in some instances our customers have the
    option to vary annual or monthly volumes. Most of our coal sales
    contracts contain provisions requiring us to deliver coal within
    certain ranges for specific coal characteristics such as heat
    content, sulfur, ash, hardness and ash fusion temperature.
    Failure to meet these quality specifications can result
112
Table of Contents
in economic penalties, suspension or cancellation of shipments
    or ultimately termination of the agreements. Some of our coal
    sales contracts specify approved locations from which coal must
    be sourced. Some of our contracts set out mechanisms for
    temporary reductions or delays in coal volumes in the event of a
    force majeure, including events such as strikes, adverse mining
    conditions, mine closures, or transportation disruptions that
    affect us as well as unanticipated customer plant outages that
    may effect our customer's ability to receive coal
    deliveries.
Customer
    Concentration
We derived 90% of our total revenues from coal sales to our ten
    largest customers for the year ended December 31, 2009,
    with our top five customers accounting for 77% of our total
    revenues. In addition, for the year ended December 31, 2009
    we derived 34.7%, 14.7% and 14.6% of our revenues from AEP, East
    Kentucky Power Cooperative and Duke Energy, respectively.
Transportation
Our coal is delivered to our customers by barge, truck or rail.
    Over 55% of the coal we shipped in 2009 was transported by our
    to our customers by barge, which is generally cheaper than
    transporting coal by truck or rail. We operate river terminals
    on the Ohio River in eastern Ohio and the Green River in western
    Kentucky, which have annual throughput capacities of
    approximately 4 million tons and 3 million tons,
    respectively. We also use third-party trucking to transport coal
    to our customers. In addition, certain of our mines are located
    near rail lines. On April 1, 2006, we entered into a
    long-term transportation contract for rail services, which has
    been amended and extended through March 31, 2011. Our
    customers typically pay the transportation costs to their
    location when coal is shipped by barge. We typically pay for the
    cost to transport coal to our customers by truck and rail and to
    our river terminals and rail loadout facilities. However, our
    sales contracts typically have these transportation costs built
    into the price. For the year ended December 31, 2009,
    55.0%, 42.0% and 3.0% of our coal sales tonnage was shipped by
    barge, truck and rail, respectively.
We believe that we have good relationships with rail carriers
    and truck companies due, in part, to our modern coal-loading
    facilities and the working relationships and experience of our
    transportation and distribution employees.
Suppliers
For the year ended December 31, 2009, expenses we incurred
    to obtain goods and services in support of our mining operations
    were $97.8 million, excluding capital expenditures.
    Principal supplies and services used in our business include
    diesel fuel, oil, explosives, maintenance and repair parts and
    services, and tires and lubricants. For the year ended
    December 31, 2009, we hedged 54.4% of our diesel fuel usage
    using fixed priced forward contracts that provide for physical
    delivery. These fixed priced forward contracts have terms
    ranging from six months to one year and generally do not have
    collateral requirements.
We use third-party suppliers for a significant portion of our
    equipment rebuilds and repairs and for blasting services. We
    also use a third party contractor for highwall mining services.
    We use bidding processes to promote competition between
    suppliers and we seek to develop relationships with those
    suppliers whose focus is on lowering our costs. We seek
    suppliers that identify and concentrate on implementing
    continuous improvement opportunities within their area of
    expertise.
Competition
The coal industry is highly competitive. There are numerous
    large and small producers in all coal producing regions of the
    United States, and we compete with many of these producers. Our
    main competitors include Alliance Resource Partners, L.P., Alpha
    Natural Resources, Inc., Armstrong Coal Company, Buckingham Coal
    Co., Inc., The Cline Group, CONSOL Energy, Massey Energy
    Company, Murray Energy Corporation, Patriot Coal Corp., Peabody
    Energy, Inc. and Rhino Mining Inc.
113
Table of Contents
The most important factors on which we compete are coal price,
    coal quality and characteristics, transportation costs and
    reliability of supply. Demand for coal and the prices that we
    will be able to obtain for our coal are closely linked to coal
    consumption patterns of the domestic electric generation
    industry and international consumers. These coal consumption
    patterns are influenced by factors beyond our control, including
    demand for electricity, which is significantly dependent upon
    economic activity and summer and winter temperatures in the
    United States, government regulation, technological developments
    and the location, quality, price and availability of competing
    sources of fuel such as natural gas, oil and nuclear sources,
    and alternative energy sources such as hydroelectric power and
    wind.
Regulation
    and Laws
Federal, state and local authorities regulate the U.S. coal
    mining industry with respect to environmental, health and safety
    matters such as employee health and safety, permitting and
    licensing requirements, air and water pollution, plant and
    wildlife protection, and the reclamation and restoration of
    mining properties after mining has been completed. These laws
    and regulations have had, and will continue to have, a
    significant effect on production costs and may impact our
    competitive advantages. Future laws, regulations or orders, as
    well as future interpretations and more rigorous enforcement of
    existing laws, regulations or orders, may substantially increase
    operating costs, result in delays and disrupt operations, the
    extent of which cannot be predicted with any degree of
    certainty. Future laws, regulations or orders may also cause
    coal to become a less attractive source of energy, thereby
    reducing its market share as fuel used to generate electricity.
    Thus, future laws, regulations or enforcement priorities may
    adversely affect our mining operations, cost structure or the
    demand for coal.
We endeavor to conduct our mining operations in compliance with
    all applicable federal, state and local laws and regulations.
    However, due in part to the complexity, extent and nature of the
    various regulatory requirements, violations can and do occur
    from time to time. We cannot assure complete compliance at all
    times with all applicable laws and regulations.
Mining
    Permits and Approvals
Numerous federal, state or local governmental permits or
    approvals are required to conduct coal mining and reclamation
    operations. When we apply for these permits and approvals, we
    are required to prepare and present data to governmental
    authorities pertaining to the effect or impact that any proposed
    production or processing of coal may have upon the natural or
    human environment. The authorization and permitting requirements
    imposed by governmental authorities are costly and increasingly
    take more time to obtain and may delay commencement or
    continuation of mining operations.
In order to obtain mining permits and approvals from federal and
    state regulatory authorities, mine operators or applicants must
    submit a reclamation plan for restoring the mined land to its
    prior productive or other approved use. Typically, we submit the
    necessary permit applications 12 to 30 months before we
    plan to mine a new area. Some required mining permits are
    becoming increasingly difficult to obtain in a timely manner, or
    at all and, in some instances, we have had to abandon coal in
    certain areas of the application in order to obtain permit
    approvals. The application review process takes longer to
    complete and is increasingly being challenged by
    environmentalists and other advocacy groups, although we are not
    aware of any such challenges to any of our pending permit
    applications.
Violations of federal, state and local laws, regulations or any
    permit or approval issued under such authorization can result in
    substantial fines and penalties, including revocation or
    suspension of mining permits. In certain circumstances, criminal
    sanctions may be imposed for failure to comply with these laws
    in addition to fines and civil penalties.
Surface
    Mining Control and Reclamation Act
SMCRA establishes mining, reclamation and environmental
    protection standards for all aspects of surface coal mining,
    including the surface effects of underground coal mining. Mining
    operators must obtain SMCRA permits and permit renewals from the
    Office of Surface Mining, or the OSM, or from the applicable
    state
114
Table of Contents
agency if the state has obtained primacy. A state may achieve
    primacy if it develops a regulatory program that is no less
    stringent than the federal program and is approved by OSM. Our
    mines are located in Ohio, Pennsylvania, West Virginia and
    Kentucky, which have primacy to administer the SMCRA program.
SMCRA permit provisions include a complex set of requirements,
    which include, among other things, coal exploration, mine plan
    development, topsoil or a topsoil removal alternative, storage
    and replacement, selective handling of overburden materials,
    mine pit backfilling and grading, disposal of excess spoil,
    protection of the hydrologic balance, surface runoff and
    drainage control, establishment of suitable post mining land
    uses and re-vegetation. The process of preparing a mining permit
    application begins by collecting baseline data to adequately
    characterize the pre-mining environmental conditions of the
    permit area. This work is typically conducted by third-party
    consultants with specialized expertise and typically includes
    surveys or assessments of the following: cultural and historical
    resources, geology, soils, vegetation, aquatic organisms,
    wildlife, potential for threatened, endangered or other special
    status species, surface and groundwater hydrology, climatology,
    riverine and riparian habitat and wetlands. The geologic data
    and information derived from the other surveys or assessments
    are used to develop the mining and reclamation plans presented
    in the permit application. The mining and reclamation plans
    address the provisions and performance standards of the
    state's equivalent SMCRA regulatory program, and are also
    used to support applications for other authorizations or permits
    required to conduct coal mining activities. Also included in the
    permit application is information used for documenting surface
    and mineral ownership, variance requests, public road use,
    bonding information, mining methods, mining phases, other
    agreements that may relate to coal, other minerals, oil and gas
    rights, water rights, permitted areas, and ownership and control
    information required to determine compliance with OSM's
    Applicant Violator System, including the mining and compliance
    history of officers, directors and principal owners of the
    entity.
Once a permit application is prepared and submitted to the
    regulatory agency, it goes through a completeness and technical
    review. Also, before a SMCRA permit is issued, a mine operator
    must submit a bond or otherwise secure the performance of all
    reclamation obligations. After the application is submitted,
    public notice or advertisement of the proposed permit action is
    required, which is followed by a public comment period. It is
    not uncommon for this process to take from 12 to 30 months
    for a SMCRA mine permit application. This variability in time
    frame for permitting is a function of the discretion vested in
    the various regulatory authorities' handling of comments
    and objections relating to the project received from the
    governmental agencies involved and the general public. The
    public also has the right to comment on and otherwise engage in
    the administrative process including at the public hearing and
    through judicial challenges to an issued permit.
Federal laws and regulations also provide that a mining permit
    or modification can be delayed, refused or revoked if owners of
    specific percentages of ownership interests or controllers
    (i.e., officers and directors or other entities) of the
    applicant have, or are affiliated with another entity that has
    outstanding violations of SMCRA or state or tribal programs
    authorized by SMCRA. This condition is often referred to as
    being "permit blocked" under the federal Applicant
    Violator Systems, or AVS. Thus, non-compliance with SMCRA can
    provide the bases to deny the issuance of new mining permits or
    modifications of existing mining permits, although we know of no
    basis to be and are not permit-blocked.
We have subleased our underground coal reserves at the Tusky
    mining complex to a third party in exchange for an overriding
    royalty. Under our sublease, our sublessee is contractually
    obligated to comply with all federal, state and local laws,
    including the reclamation and restoration of the mined areas by
    grading, shaping and reseeding the soil as required under SMCRA.
    Regulatory authorities may attempt to assign the SMCRA
    liabilities of our sublessee to us if it is not financially
    capable of fulfilling those obligations and it is determined
    that we "own" or "control" the
    sublessee's mining operation. To our knowledge, no such
    claims have been asserted against us to date. If such claims are
    ever asserted against us, we will contest them vigorously on the
    basis that, among other things, receiving an overriding royalty
    under a sublease does not alone meet the legal or regulatory
    test of "ownership" or "control" so as to
    subject us to the SMCRA liabilities of our sublessee.
115
Table of Contents
In 1983, the OSM adopted the "stream buffer zone
    rule," or SBZ Rule, which prohibited mining disturbances
    within 100 feet of streams if there would be a negative
    effect on water quality. In December 2008, the OSM finalized a
    revised SBZ Rule, which purported to clarify certain aspects of
    the 1983 SBZ Rule. Several organizations challenged the 2008
    revision to the SBZ Rule in two related actions filed in the
    United States District Court for the District of Columbia. In
    April 2009, the United States filed motions seeking the
    voluntary vacation of the revised SBZ Rule. In June 2009, the
    Interior Department and the U.S. Army entered into a
    memorandum of understanding on how to protect waterways from
    degradation if the revised SBZ Rule were vacated due to the
    litigation. In August 2009, the District Court denied the
    Government's motion, and concluded that the revised SBZ
    Rule could not be vacated without following the Administrative
    Procedure Act and other related requirements. On
    November 30, 2009, the OSM published a notice of a proposed
    rulemaking to further revise the SBZ Rule and solicited comments
    until December 30, 2009. The OSM suggested several
    alternative regulatory approaches in the rulemaking notice, and
    indicated that they will prepare a supplemental environmental
    impact study on the proposed revisions prior to adoption. Based
    on the memorandum of understanding and the proposals in the
    notice, the requirements of the revised SBZ Rule, when adopted,
    could be more adverse than the prior SBZ Rule, and may adversely
    affect our business and operations. In addition, Congress has
    proposed legislation in the past and may propose legislation in
    the future to restrict the placement of mining material in
    streams. Such legislation could also have an adverse impact on
    our business.
In addition to the bond requirement for an active or proposed
    permit, the Abandoned Mine Land Fund, which was created by
    SMCRA, imposes a fee on all coal produced. The proceeds of the
    fee are used to restore mines closed or abandoned prior to
    SMCRA's adoption in 1977. The current fee is $0.315 per ton
    of coal produced from surface mines. In 2009, we recorded
    $1.7 million of expense related to these reclamation fees.
Surety
    Bonds
State laws require a mine operator to secure the performance of
    its reclamation obligations required under SMCRA through the use
    of surety bonds or other approved forms of performance security
    to cover the costs the state would incur if the mine operator
    were unable to fulfill its obligations. The cost of surety bonds
    have fluctuated in recent years, and the market terms of these
    bonds have generally become more unfavorable to mine operators.
    These changes in the terms of the bonds have been accompanied at
    times by a decrease in the number of companies willing to issue
    surety bonds. Some mine operators have therefore used letters of
    credit to secure the performance of a portion of our reclamation
    obligations.
As of December 31, 2009, we had approximately
    $31.3 million in surety bonds outstanding to secure the
    performance of our reclamation obligations, which were supported
    by approximately $6.9 million in letters of credit.
Mine
    Safety and Health
Stringent health and safety standards have been in effect since
    Congress enacted the Coal Mine Health and Safety Act of 1969.
    The Federal Mine Safety and Health Act of 1977, or the Mine Act,
    significantly expanded the enforcement of safety and health
    standards and imposed safety and health standards on all aspects
    of mining operations. In addition to federal regulatory
    programs, all of the states in which we operate have state
    programs for mine safety and health regulation and enforcement.
    Collectively, federal and state safety and health regulation in
    the coal mining industry is among the most comprehensive systems
    for protection of employee health and safety affecting any
    segment of U.S. industry. The Mine Act requires mandatory
    inspections of surface and underground coal mines and requires
    the issuance of citations or orders for the violation of a
    mandatory health and safety standard. A civil penalty must be
    assessed for each citation or order issued. Serious violations
    of mandatory health and safety standards may result in the
    issuance of an order requiring the immediate withdrawal of
    miners from the mine or shutting down a mine or any section of a
    mine or any piece of mine equipment. The Mine Act also imposes
    criminal liability for corporate operators who knowingly or
    willfully violates a mandatory health and safety standard, or
    order and provides that civil and criminal penalties may be
    assessed against individual agents, officers and directors who
    knowingly or
116
Table of Contents
willfully violate a mandatory health and safety standard or
    order. In addition, criminal liability may be imposed against
    any person for knowingly falsifying records required to be kept
    under the Mine Act and standards. In response to recent
    underground mine accidents, Congress, in 2006, enacted the Mine
    Improvement and New Emergency Response Act, or MINER Act, which
    imposed additional burdens on coal operators, including, among
    other matters, (i) obligations related to (a) the
    development of new emergency response plans that address
    post-accident communications, tracking of miners, breathable
    air, lifelines, training and communication with local emergency
    response personnel, (b) establishing additional
    requirements for mine rescue teams, and (c) promptly
    notifying federal authorities of incidents that pose a
    reasonable risk of death and (ii) increased penalties for
    violations of the applicable federal laws and regulations. The
    penalty regulations promulgated in 2007 as a result of this
    legislation included new heightened penalty categories for
    certain types of violations and have resulted in the imposition
    of penalty assessment amounts that doubled between fiscal years
    2007 and 2008 in the coal industry and are expected to increase.
    In the wake of the 2006 legislation, enforcement scrutiny also
    increased, including more inspection hours at mine sites,
    increased numbers of inspections and increased issuance of the
    number and the severity of enforcement actions. Various states
    also have enacted their own new laws and regulations addressing
    many of these same subjects. Our compliance with these or any
    new mine health and safety regulations could increase our mining
    costs.
Under the Black Lung Benefits Revenue Act of 1977 and the Black
    Lung Benefits Reform Act of 1977, as amended in 1981, each coal
    mine operator must pay federal black lung benefits to claimants
    who are current and former employees and also make payments to a
    trust fund for the payment of benefits and medical expenses to
    claimants who last worked in the coal industry prior to
    January 1, 1970. The trust fund is funded by an excise tax
    on production of up to $1.10 per ton for deep-mined coal and up
    to $0.55 per ton for surface-mined coal, neither amount to
    exceed 4.4% of the gross sales price. The excise tax does not
    apply to coal shipped outside the United States. In 2009, we
    recorded $3.1 million of expense related to this excise
    tax. The Affordable Health Choices Act currently being debated
    in the U.S. Congress proposes potentially significant
    changes to the federal black lung program, including provisions,
    retroactive to 2005, which would (i) provide an automatic
    survivor benefit paid upon the death of a miner with an awarded
    black lung claim, without requiring proof that the death was due
    to pneumoconiosis and (ii) establish a rebuttable
    presumption with regard to pneumoconiosis among miners with 15
    or more years of coal mine employment that are totally disabled
    by a respiratory condition. These or similar proposed changes,
    if enacted, could have a material impact on our costs expended
    in association with the federal Black Lung program. In addition,
    we are liable under various state statutes for black lung claims.
Clean
    Air Act
The federal Clean Air Act and state laws that regulate air
    emissions affect coal mining operations both directly and
    indirectly. Direct impacts on coal mining and processing
    operations include Clean Air Act permitting requirements and
    control requirements for particulate matter, which includes
    fugitive dust from roadways, parking lots, and equipment such as
    conveyors and storage piles. The Clean Air Act indirectly
    affects coal mining operations by extensively regulating the
    emissions of particulate matter, sulfur dioxide, nitrogen
    oxides, carbon monoxide, ozone, mercury and other compounds
    emitted by coal-fired power plants. In addition to greenhouse
    gas emissions discussed below, air emission control programs
    that affect our operations, directly or indirectly, include, but
    are not limited to, the following:
•
Acid Rain.
Title IV of the Clean Air Act
    requires reductions of sulfur dioxide emissions by electric
    utilities. Affected power plants have sought to reduce sulfur
    dioxide emissions by switching to lower sulfur fuels, installing
    pollution control devices, reducing electricity generating
    levels or purchasing or trading sulfur dioxide emissions
    allowances. These efforts will make it more costly to operate
    coal-fired power plants and could make coal a less attractive
    fuel alternative in the planning and building of power plants in
    the future.
•
Particulate Matter.
The Clean Air Act requires
    the EPA to set standards, referred to as National Ambient Air
    Quality Standards, or NAAQS, for certain pollutants. Areas that
    are not in compliance (referred to as "non-attainment
    areas") with these standards must take steps to reduce
    emissions levels. Although our operations are not currently
    located in non-attainment areas, should any of the
117
Table of Contents
areas in which we operate be designated as non-attainment areas
    for particulate matter, our mining operations may be directly
    affected by any NAAQS implementation.
•
Ozone.
The EPA issued revised ozone NAAQS
    imposing more stringent limits that took effect in May 2008.
    Nitrogen oxides, which are a by-product of coal combustion, are
    classified as an ozone precursor. Under the revised ozone NAAQS,
    significant additional emissions control expenditures may be
    required at coal-fired power plants. Attainment dates for the
    new standards range between 2013 and 2030, depending on the
    severity of the non-attainment. In July 2009, the
    U.S. Court of Appeals for the District of Columbia vacated
    part of a rule implementing the ozone NAAQs and remanded certain
    other aspects of the rule to the EPA for further consideration.
    Notwithstanding the decision, we expect that additional
    emissions control requirements may be imposed on new and
    expanded coal-fired power plants and industrial boilers in the
    years ahead. The combination of these actions may impact demand
    for coal nationally, the impact of which we are unable to
    predict to any reasonable degree of certainty.
•
NOx, or Nitrogen Oxides State Implementation Plan, or SIP
    Call
.  The NOx SIP Call program was established by
    the EPA in October 1998 to reduce the transport of nitrogen
    oxide and ozone on prevailing winds from the Midwest and South
    to states in the Northeast that alleged they could not meet
    federal air quality standards because of NOx emissions. The
    program is designed to reduce NOx emissions by one million tons
    per year in 22 eastern states and the District of Columbia. As a
    result of this program, many power plants have been or will be
    required to install additional emission control measures, such
    as selective catalytic reduction, or SCR, devices. Installation
    of additional emission control measures will make it more costly
    to operate coal-fired power plants, which could make coal a less
    competitive fuel.
•
Clean Air Interstate Rule.
The EPA's CAIR
    calls for power plants in 28 eastern states and the District of
    Columbia to reduce emission levels of sulfur dioxide and
    nitrogen oxide pursuant to a cap and trade program similar to
    the system now in effect for acid rain. In July 2008, the
    U.S. Court of Appeals for the District of Columbia Circuit
    vacated the EPA's CAIR in its entirety and directed the EPA
    to commence new rule-making. After a petition for rehearing, the
    court ruled in December 2008 that to completely vacate CAIR
    would sacrifice public health and environmental benefits and
    that CAIR should remain in effect while the EPA modifies the
    rule. It is uncertain how the EPA will proceed to modify CAIR,
    although the EPA has indicated that it intends to propose a
    replacement rule in 2010 and to issue a final rule by early
    2011. Under CAIR and any replacement rule, some coal-fired power
    plants might be required to install additional pollution control
    equipment, such as scrubbers
and/or
SCR
    equipment that could lead plants with these controls to become
    less sensitive to the sulfur-content of coal and more sensitive
    to delivered price, thereby making our high sulfur coal more
    competitive.
•
Mercury.
In February 2008, the U.S. Court
    of Appeals for the District of Columbia Circuit vacated the
    EPA's Clean Air Mercury Rule, or CAMR, which had
    established a cap and trade program to reduce mercury emissions
    from power plants. At present, there are no federal regulations
    that require monitoring and reducing of mercury emissions at
    existing power plants. As a result of the decision to vacate the
    CAMR, in February 2009 the EPA announced that it would regulate
    mercury emissions by issuing Maximum Achievable Control
    Technology standards, or MACT, that will likely impose stricter
    limitations on mercury emissions from power plants than the
    vacated CAMR. The EPA is under a court deadline to issue a final
    rule requiring MACT for power plants by November, 2011. In
    conjunction with these efforts, on December 24, 2009, EPA
    approved an Information Collection Request (ICR) requiring all
    US power plants with coal-or oil-fired electric generating units
    to submit emissions information for use in developing air toxic
    emissions standards. EPA has stated that it intends to propose
    air toxic emissions standards for coal- and oil-fired electric
    generating units by March 10, 2011. In the meantime,
case-by-case
MACT determinations for mercury may be required for new and
    reconstructed coal-fired power plants. Apart from CAMR, several
    states have enacted or proposed regulations requiring reductions
    in mercury emissions from coal-fired power plants, and federal
    legislation to reduce mercury emissions from power plants has
    been proposed. The Obama
118
Table of Contents
Administration has also indicated a desire to begin negotiations
    on an international treaty to reduce mercury pollution. More
    stringent regulation of mercury emissions by the EPA, states,
    Congress, or pursuant to an international treaty may decrease
    the future demand for coal, but we are unable to predict the
    magnitude of any such impact with any reasonable degree of
    certainty.
There are lawsuits pending or threatened legal actions that have
    named coal producers as defendants for personal injury and
    property damage resulting from mercury emissions from coal-fired
    plants (e.g. by entering human pathways of exposure).
•
Regional Haze.
The EPA has initiated a
    regional haze program designed to protect and improve visibility
    at and around national parks, national wilderness areas and
    international parks. This program may result in additional
    emissions restrictions from new coal-fired power plants whose
    operation may impair visibility at and near such federally
    protected areas. This program may also require certain existing
    coal-fired power plants to install additional control measures
    designed to limit haze-causing emissions, such as sulfur
    dioxide, nitrogen oxides, ozone and particulate matter. These
    limitations could also affect the future market for coal, to the
    extent of which we are unable to predict with any reasonable
    degree of certainty.
•
New Source Review or, or NSR.
A number of
    pending regulatory changes and court actions will affect the
    scope of the EPA's NSR program, which requires, among other
    emission sources, new coal-fired power plants and certain
    modifications to existing coal-fired power plants to install the
    same air emissions control equipment as new plants. The changes
    to the NSR program may impact demand for coal nationally, but we
    are unable to predict the magnitude of any such impact with any
    reasonable degree of certainty.
Climate
    Change
Carbon dioxide is a "greenhouse gas," the man-made
    emissions of which are of major concern under any regulatory
    framework intended to control climate change or prevent global
    warming. Carbon dioxide is a by-product of the combustion
    process, a primary source of which are coal-fired power plants.
    In 2005, the Kyoto Protocol to the 1992 United Nations Framework
    Convention on Climate Change, which establishes a binding set of
    emission targets for greenhouse gases, became binding on all
    those countries that had ratified it. To date, the U.S. has
    not ratified the Kyoto Protocol, which expires in 2012. The
    United States is participating in international discussions
    currently underway to develop a treaty to replace the Kyoto
    Protocol after its expiration in 2012. Any replacement treaty or
    other international arrangement requiring additional reductions
    in greenhouse gas emissions will have a potentially significant
    impact on the demand for coal if the United States were to adopt
    such requirements.
Future regulation of greenhouse gases in the United States could
    occur pursuant to future U.S. treaty commitments, new
    domestic legislation that may impose a carbon emissions tax, a
cap-and-trade
program or other programs aimed at carbon reduction, or by
    regulatory programs that may be established by the EPA under its
    existing authority. Congress is actively considering various
    proposals to reduce greenhouse gas emissions, mandate
    electricity suppliers to use renewable energy sources to
    generate a certain percentage of power, promote the use of clean
    energy and require energy efficiency measures. In June 2009, the
    House of Representatives passed a comprehensive climate change
    and energy bill, the American Clean Energy and Security Act, and
    the Senate has considered similar legislation that would, among
    other things, impose a nationwide cap on greenhouse gas
    emissions and require major sources, including coal-fired power
    plants, to obtain "allowances" to meet that cap. The
    Senate is also crafting a compromise bill that may favor
    expansion of domestic energy production and limit the imposition
    of a cap and trade approach. Passage of such comprehensive
    climate change and energy legislation could impact the demand
    for coal. Any reduction in the amount of coal consumed by North
    American electric power generators could reduce the price of
    coal that we mine and sell, thereby reducing our revenues and
    have a material adverse affect on our business and the results
    of our operations.
Even in the absence of new federal legislation, greenhouse gas
    emissions may be regulated in the future by the EPA pursuant to
    the Clean Air Act. In response to the 2007 U.S. Supreme
    Court ruling
119
Table of Contents
Massachusetts v. EPA
that the EPA has authority to
    regulate carbon dioxide emissions under the Clean Air Act, the
    EPA has taken several steps towards implementing regulations
    regarding the emission of greenhouse gases. In December 2009,
    the EPA issued a finding that carbon dioxide and certain other
    greenhouse gases emitted by motor vehicles endanger public
    health and the environment. This finding allows the EPA to begin
    regulating greenhouse gas emissions under existing provisions of
    the Clean Air Act. In anticipation of this finding, in October
    2009, the EPA published a proposed rule that makes it clear that
    the EPA anticipates regulating the emission of greenhouse gases
    from certain stationary sources with an initial focus on
    facilities that release more than 25,000 tons of greenhouse
    gases a year, and which would require best available control
    technology for greenhouse gas emissions whenever such facilities
    are built or significantly modified. If the EPA were to set
    emission limits for carbon dioxide from electric utilities, the
    amount of coal our customers purchase from us could decrease.
    Moreover, in October 2009, the EPA published a final rule
    requiring certain emitters of greenhouse gases, including
    coal-fired power plants, to monitor and report their greenhouse
    gas emissions to the EPA beginning in 2011 for emissions
    occurring in 2010.
Many states and regions have adopted greenhouse gas initiatives
    and certain governmental bodies have or are considering the
    imposition of fees or taxes based on the emission of greenhouse
    gases by certain facilities. In December 2005, seven
    northeastern states (Connecticut, Delaware, Maine, New
    Hampshire, New Jersey, New York, and Vermont) signed the
    Regional Greenhouse Gas Initiative agreement, or RGGI, calling
    for implementation of a cap and trade program by 2009 aimed at
    reducing carbon dioxide emissions from power plants in the
    participating states. The RGGI program calls for signatory
    states to stabilize carbon dioxide emissions to current levels
    from 2009 to 2015, followed by a 2.5% reduction each year from
    2015 through 2018. Since its inception, several additional
    northeastern states and Canadian provinces have joined as
    participants or observers. RGGI has begun holding quarterly
    carbon dioxide allowance auctions for its initial three-year
    compliance period from January 1, 2009 to December 31,
    2011 to allow utilities to buy allowances to cover their carbon
    dioxide emissions.
Midwestern states and Canadian provinces have also adopted
    initiatives to reduce and monitor greenhouse gas emissions. In
    November 2007, Illinois, Indiana, Iowa, Kansas, Michigan,
    Minnesota, Ohio, South Dakota and Wisconsin and Manitoba signed
    the Midwestern Greenhouse Gas Reduction Accord to develop and
    implement steps to reduce greenhouse gas emissions. The draft
    recommendations, released in June 2009, call for a 20% reduction
    below 2005 emissions levels by 2020 and additional reductions to
    80% below 2005 emissions levels by 2080. Climate change
    initiatives are also being considered or enacted in some western
    states.
Also, two U.S. federal appeals courts have allowed lawsuits
    by individuals, state attorneys general and others to pursue
    claims against major utility, coal, oil and chemical companies
    on the basis that those companies have created a public nuisance
    due to their emissions of carbon dioxide.
In addition to direct regulation of greenhouse gases,
    28 states have adopted "renewable portfolio
    standards," which require electric utilities to obtain a
    certain percentage of their electric generation portfolio from
    renewable resources by a certain date. These standards range
    generally from 10% to 30%, over time periods that generally
    extend from the present until between 2020 and 2030. An
    additional five states have renewable portfolio standard goals
    that are not yet legal requirements. Other states may adopt
    similar requirements, and federal legislation is a possibility
    in this area. To the extent these requirements affect our
    current and prospective customers, they may reduce the demand
    for coal-fired power, and may affect long-term demand for our
    coal.
These and other current or future climate change rules, court
    orders or other legally enforceable mechanisms may in the future
    require, additional controls on coal-fired power plants and
    industrial boilers and may even cause some users of coal to
    switch from coal to a lower carbon dioxide emitting fuels or
    shut-down coal-fired power plants. There can be no assurance at
    this time that a carbon dioxide cap and trade program, a carbon
    tax or other regulatory regime, if implemented by the states in
    which our customers operate or at the federal level, or future
    court orders or other legally enforceable mechanisms, will not
    affect the future market for coal in those regions. The
    permitting of new coal-fired power plants has also recently been
    contested by some state regulators and environmental
    organizations based on concerns relating to greenhouse gas
    emissions.
120
Table of Contents
Increased efforts to control greenhouse gas emissions could
    result in reduced demand for coal. If mandatory restrictions on
    carbon dioxide emissions are imposed, the ability to capture and
    store large volumes of carbon dioxide emissions from coal-fired
    power plants may be a key mitigation technology to achieve
    emissions reductions while meeting projected energy demands. A
    number of recent legislative and regulatory initiatives to
    encourage the development and use of carbon capture and storage
    technology have been proposed or enacted. For example, the
    U.S. Department of Energy announced in May 2009 that it
    would provide $2.4 billion of federal stimulus funds under
    the ARRA to expand and accelerate the commercial deployment of
    large-scaled CCS technology. However, there can be no assurances
    that cost-effective CCS capture and storage technology will
    become commercially feasible in the near future.
Clean
    Water Act
The CWA and corresponding state and local laws and regulations
    affect coal mining operations by restricting the discharge of
    pollutants, including the discharge of dredged or fill
    materials, into waters of the United States. The CWA provisions
    and associated state and federal regulations are complex and
    subject to amendments, legal challenges and changes in
    implementation. Legislation that seeks to clarify the scope of
    CWA jurisdiction is under consideration by Congress. Recent
    court decisions, regulatory actions and proposed legislation
    have created uncertainty over CWA jurisdiction and permitting
    requirements that could either increase or decrease the cost and
    time we expend on CWA compliance.
CWA requirements that may directly or indirectly affect our
    operations include the following:
•
Wastewater Discharge.
Section 402 of the
    CWA regulates the discharge of "pollutants" into
    navigable waters of the United States. The National Pollutant
    Discharge Elimination System, or NPDES, requires a permit for
    any such discharges and entails regular monitoring, reporting
    and compliance with performance standards that govern
    discharges. Failures to comply with the CWA or the NPDES permits
    can lead to the imposition of penalties, compliance costs and
    delays in coal production.
The CWA and corresponding state laws also protect waters that
    states have designated for special protections including those
    designated as: impaired (i.e., as not meeting present water
    quality standards) through Total Maximum Daily Load, or TMDL,
    regulations; and "high quality/exceptional use"
    streams through anti-degradation regulations which restrict or
    prohibit discharges which result in degradation. Other
    requirements require the treatment of discharges from coal
    mining properties for non-traditional pollutants, such as
    chlorides, selenium and dissolved solids; and
    "protecting" streams, wetlands, other regulated water
    sources and associated riparian lands from surface mining
and/or
the
    surface impacts of underground mining. Individually and
    collectively, these requirements may cause us to incur
    significant additional costs that could adversely affect our
    operating results, financial condition and cash flows.
•
Dredge and Fill Permits.
Many mining
    activities, including the development of settling ponds and
    other impoundments, may require a Section 404 permit from
    the Corps, prior to conducting such mining activities where they
    involve discharges of "fill" into navigable waters of
    the United States. The Corps is empowered to issue
    "nationwide" permits for specific categories of
    filling activities that are determined to have minimal
    environmental adverse effects in order to save the cost and time
    of issuing individual permits under Section 404 of the
    Clean Water Act. Using this authority, the Corps issued NWP 21,
    which authorizes the disposal of
dredge-and-fill
material from mining activities into the waters of the United
    States. Individual Section 404 permits are required for
    activities determined to have more significant impacts to waters
    of the United States.
Since 2003, environmental groups have pursued litigation
    primarily in West Virginia and Kentucky challenging the validity
    of NWP 21 and various individual Section 404 permits
    authorizing valley fills associated with surface coal mining
    operations (primarily mountain-top removal operations). This
    litigation has resulted in delays in obtaining these permits and
    has increased permitting costs. The most recent major decision
    in this line of litigation is the opinion of the U.S. Court of
    Appeals for the Fourth Circuit in
Ohio Valley Environmental
    Council v. Aracoma Coal Company
, 556 F.3d
121
Table of Contents
177 (2009) (
Aracoma
), issued on February 13, 2009.
    In
Aracoma
the Court rejected all of the substantive
    challenges to the Section 404 permits involved in the case
    primarily by deferring to the expertise of the Corps in review
    of the permit applications. We currently have only one pending
    NWP 21 authorization, and we do not anticipate seeking NWP 21
    authorizations in the future. As a result, we do not believe the
    outcome of this case will be material to us. However, the
    U.S. Supreme Court granted certiorari for this case on
    August 26, 2009, and it remains pending. If reversed, such
    a result could have an adverse effect on the surface mining
    industry.
After this decision was published, however, the EPA undertook
    several initiatives to address the issuance of Section 404
    permits for coal mining activities in the Eastern
    U.S. First, the EPA began to comment on Section 404
    permit applications pending before the Corps raising many of the
    same issues decided in favor of the coal industry in
Aracoma
. Many of the EPA's comment letters were
    submitted long after the end of the EPA's comment period
    based on what the EPA contended was "new" information
    on the impacts of valley fills on stream water quality
    immediately downstream of valley fills. These letters have
    created regulatory uncertainty regarding the issuance of
    Section 404 permits for coal mining operations and have
    substantially expanded the time required for issuance of these
    permits.
In June 2009, the Corps, the EPA and the Department of the
    Interior announced an interagency action plan for an
    "enhanced review" of any project that requires both a
    SMCRA and a CWA permit designed to reduce the harmful
    environmental consequences of mountain-top mining in the
    Appalachian region. As part of this interagency memorandum of
    understanding, the Corps proposed to suspend and modify NWP 21
    in the Appalachian region of Kentucky, Ohio, Pennsylvania,
    Tennessee, Virginia and West Virginia to prohibit its use to
    authorize discharges of fill material into waters of the United
    States for mountain-top mining. Two of our applications for
    permits are currently being reviewed by EPA under this enhanced
    review procedure even though the mining activities in question
    do not utilize mountain-top mining, a method of mining we do not
    employ. Collectively, the permits covered by these applications
    cover 1.1 million tons of our proven and probable coal
    reserves.
The EPA is also taking a more active role in its review of NPDES
    permit applications for coal mining operations in Appalachia,
    and announced in September 2009 that it was delaying the
    issuance of 74 Section 404 permits in central Appalachia.
    This is especially true in West Virginia, where the EPA
    plans to review all applications for NPDES permits even though
    the State of West Virginia is authorized to issue NPDES permits
    in West Virginia. These initiatives have extended the time
    required to obtain permits for coal mining and we anticipate
    further delays in obtaining permits and that the costs
    associated with obtaining and complying with those permits will
    increase substantially. Additionally, while it is unknown
    precisely what other future changes will be implemented as a
    result of the interagency action plan, any future changes could
    further restrict our ability to obtain other new permits or to
    maintain existing permits.
Resource
    Conservation and Recovery Act
The Resource Conservation and Recovery Act, or RCRA, was enacted
    in 1976 to establish requirements for the management of
    hazardous wastes from the point of generation through treatment
    of disposal. RCRA does not apply to most of the wastes generated
    at coal mines, overburden and coal cleaning wastes, because they
    are not considered hazardous wastes as EPA applies that term.
    Only a small portion of the total amount of wastes generated at
    a mine are regulated as hazardous wastes.
Although this act has the potential to apply to wastes from the
    combustion of coal, the EPA determined that coal combustion
    wastes do not warrant regulation as hazardous wastes under RCRA
    in May 2000. Most state solid waste laws also regulate coal
    combustion wastes as non-hazardous wastes. The EPA is currently
    considering whether national non-hazardous waste regulations
    under RCRA are warranted for certain wastes generated from coal
    combustion, such as coal ash, when used as mine-fill.
122
Table of Contents
Comprehensive
    Environmental Response, Compensation and Liability
    Act
The Comprehensive Environmental Response, Compensation and
    Liability Act, CERCLA or Superfund, and similar state laws
    affect coal mining operations by, among other things, imposing
    cleanup requirements for threatened or actual releases of
    hazardous substances. Under CERCLA and similar state laws, joint
    and several liability may be imposed on waste generators, site
    owners, lessees and others regardless of fault or the legality
    of the original disposal activity. Although the EPA excludes
    most wastes generated by coal mining and processing operations
    from the hazardous waste laws, such wastes can, in certain
    circumstances, constitute hazardous substances for the purposes
    of CERCLA. In addition, the disposal, release or spilling of
    some products used by coal companies in operations, such as
    chemicals, could trigger the liability provisions of CERCLA or
    similar state laws. Thus, we may be subject to liability under
    CERCLA and similar state laws for coal mines that we currently
    own, lease or operate or that we or our predecessors have
    previously owned, leased or operated, and sites to which we or
    our predecessors sent waste materials. This includes the Tusky
    mining complex where we have subleased our underground coal
    reserves to a third party in exchange for an overriding royalty.
    We may be liable under CERCLA or similar state laws for the
    cleanup of hazardous substance contamination and natural
    resource damages at sites where we own surface rights.
Endangered
    Species Act
The federal Endangered Species Act, or ESA, and counterpart
    state legislation protect species threatened with possible
    extinction. The U.S. Fish and Wildlife Service, or USFWS,
    works closely with the OSM and state regulatory agencies to
    ensure that species subject to the ESA are protected from
    mining-related impacts. A number of species indigenous to the
    areas in which we operate, specifically the Indiana bat, are
    protected under the ESA, and compliance with ESA requirements
    could have the effect of prohibiting or delaying us from
    obtaining mining permits. These requirements may also include
    restrictions on timber harvesting, road building and other
    mining or agricultural activities in areas containing the
    affected species or their habitats. Should more stringent
    protective measures be applied, this could result in increased
    operating costs, heightened difficulty in obtaining future
    mining permits, or the need to implement additional mitigation
    measures.
Use of
    Explosives
We use third party contractors for blasting services and our
    surface mining operations are subject to numerous regulations
    relating to blasting activities. Pursuant to these regulations,
    we incur costs to design and implement blast schedules and to
    conduct pre-blast surveys and blast monitoring. In addition, the
    storage of explosives is subject to regulatory requirements. We
    presently do not engage in blasting activities. All of our
    blasting activities are conducted by independent contractors
    that use certified blasters.
Other
    Environmental Laws and Matters
We are required to comply with numerous other federal, state and
    local environmental laws and regulations in addition to those
    previously discussed. These additional laws include, for
    example, the Safe Drinking Water Act, the Toxic Substance
    Control Act and the Emergency Planning and Community
Right-to-Know
Act.
We maintain coal refuse areas and slurry impoundments at our
    Tuscarawas County and Muhlenberg County mining complexes. Such
    areas and impoundments are subject to extensive regulation. One
    of those impoundments overlies a mined out area, which can pose
    a heightened risk of structural failure and of damages arising
    out of such failure. When a slurry impoundment experiences a
    structural failure, it could release large volumes of coal
    slurry into the surrounding environment, which in turn can
    result in extensive damage to the environment and natural
    resources, such as bodies of water. A failure may also result in
    civil or criminal fines, penalties, personal injuries and
    property damages, and damage to wildlife or natural resources.
123
Table of Contents
Office
    Facilities
We lease and own office space in Columbus and Coshocton, Ohio,
    respectively, that is used by our executive and administrative
    employees. Our lease expires in 2015.
Employees
To carry out our operations, our general partner employed over
    800 full-time employees as of December 31, 2009. None
    of these employees are subject to collective bargaining
    agreements or are members of any unions. We believe that we have
    good relations with these employees, and we continually seek
    their input with respect to our operations. Since our inception,
    we have had no history of work stoppages or union organizing
    campaigns.
Legal
    Proceedings
Although we are, from time to time, involved in litigation and
    claims arising out of our operations in the normal course of
    business, we do not believe that we are a party to any
    litigation that will have a material adverse impact on our
    financial condition or results of operations. We are not aware
    of any significant legal or governmental proceedings against us,
    or contemplated to be brought against us. We maintain such
    insurance policies with insurers in amounts and with coverage
    and deductibles as our general partner believes are reasonable
    and prudent. However, we cannot assure you that this insurance
    will be adequate to protect us from all material expenses
    related to potential future claims for personal and property
    damage or that these levels of insurance will be available in
    the future at economical prices.
124
Table of Contents
MANAGEMENT
We are managed and operated by the directors and executive
    officers of our general partner, Oxford Resources GP, LLC. Our
    general partner is not elected by our unitholders and will not
    be subject to re-election in the future. C&T Coal owns
    33.7% of the ownership interests in our general partner and AIM
    Oxford owns the remaining 66.3% of the ownership interests in
    our general partner. Oxford Resources GP has a board of
    directors, and our unitholders are not entitled to elect the
    directors or directly or indirectly participate in our
    management or operations. Charles C. Ungurean, the President and
    Chief Executive Officer of our general partner and a member of
    the board of directors of our general partner, and Thomas T.
    Ungurean, the Senior Vice President, Equipment, Procurement and
    Maintenance of our general partner, own all of the equity
    interests in C&T Coal. In addition, certain directors of
    our general partner are principals of AIM and have ownership
    interests in AIM. Our general partner owes certain fiduciary
    duties to our unitholders as well as a fiduciary duty to its
    owners. Our general partner will be liable, as general partner,
    for all of our debts (to the extent not paid from our assets),
    except for indebtedness or other obligations that are made
    specifically nonrecourse to it. Whenever possible, we intend to
    incur indebtedness that is nonrecourse to our general partner.
Our partnership agreement provides for the Conflicts Committee,
    as circumstances warrant, to review conflicts of interest
    between us and our general partner or between us and affiliates
    of our general partner. The Conflicts Committee, which will
    consist solely of one independent director, will determine if
    the resolution of a conflict of interest that has been presented
    to it by our general partner is fair and reasonable to us. The
    members of the Conflicts Committee may not be executive officers
    or employees of our general partner or directors, executive
    officers or employees of its affiliates. In addition, the
    members of the Conflicts Committee must meet the independence
    and experience standards established by the New York Stock
    Exchange and the Exchange Act. Any matters approved by the
    Conflicts Committee will be conclusively deemed to be fair and
    reasonable to us, approved by all of our partners and not a
    breach by our general partner of any duties it may owe us or our
    unitholders. In addition, we will have an audit committee, or
    Audit Committee, that complies with the New York Stock Exchange
    requirements, and we will have a compensation committee, or
    Compensation Committee.
Even though most companies listed on the New York Stock Exchange
    are required to have a majority of independent directors serving
    on the board of directors of the listed company, the New York
    Stock Exchange does not require a listed limited partnership
    like us to have a majority of independent directors on the board
    of directors of its general partner.
Gerald A. Tywoniuk, along with two other independent board
    members to be appointed, will serve as the members of the Audit
    Committee. Mr. Tywoniuk serves as the chair of the Audit
    Committee. In compliance with the rules of the New York Stock
    Exchange, the members of the board of directors named below will
    appoint to the Audit Committee one additional independent member
    within 90 days of the listing and one additional
    independent member within twelve months of the listing.
    Thereafter, our general partner is generally required to have at
    least three independent directors serving on its board at all
    times.
Brian D. Barlow, Matthew P. Carbone and Gerald A. Tywoniuk serve
    as the members of the Compensation Committee. Mr. Barlow
    serves as the chair of the Compensation Committee.
Directors are appointed for a term of one year and hold office
    until their successors have been elected or qualified or until
    the earlier of their death, resignation, removal or
    disqualification. Officers serve at the
125
Table of Contents
discretion of the board. The following table shows information
    for the directors and executive officers of our general partner.
Name
Age
Position
George E. McCown
74
Chairman of the Board
Charles C. Ungurean
60
Director, President and Chief Executive Officer
Jeffrey M. Gutman
44
Senior Vice President, Chief Financial Officer and Treasurer
Gregory J. Honish
53
Senior Vice President, Operations
Thomas T. Ungurean
58
Senior Vice President, Equipment, Procurement and Maintenance
Michael B. Gardner
55
Secretary and General Counsel
Denise M. Maksimoski
35
Senior Director of Accounting
Brian D. Barlow
39
Director
Matthew P. Carbone
43
Director
Gerald A. Tywoniuk
48
Director
George E. McCown
was elected Chairman of the board of
    directors of our general partner in August 2007. Mr. McCown
    has been a Managing Director of AIM since he co-founded AIM in
    July 2006. Additionally, Mr. McCown has been a Managing
    Director of McCown De Leeuw & Co., or MDC, a private
    equity firm based in Foster City, California that specializes in
    buying and building industry-leading middle-market companies in
    partnership with management, since he co-founded MDC in 1983.
    Mr. McCown is Chairman of the board of directors of the
    general partner of Tunnel Hill Partners, an affiliate of AIM and
    C&T Coal. Mr. McCown received an MBA from Harvard
    University and a B.S. in mechanical engineering from Stanford
    University, where he served as a trustee from 1980 to 1985 and
    chaired the Finance Committee and Investment Policy Subcommittee
    of Stanford's board of trustees.
Mr. McCown's over 40 years of experience in
    buying and building companies, as well as his in-depth knowledge
    of the coal industry generally and our partnership in
    particular, provide him with the necessary skills to be a member
    of the board of directors of our general partner.
Charles C. Ungurean
was elected President and Chief
    Executive Officer and a member of the board of directors of our
    general partner in August 2007. In 1985, Mr. Ungurean
    co-founded our predecessor and wholly owned subsidiary, Oxford
    Mining Company. He served as President and Treasurer of our
    predecessor from 1985 to August 2007. He has served as the
    President and Chief Executive Officer of our general partner
    since its formation in August 2007. Mr. Ungurean
    currently serves on the board of directors of the National
    Mining Association. In addition, Mr. Ungurean served as
    Chairman of the Ohio Coal Association from July 2002 to July
    2004. Mr. Ungurean is the brother of Thomas T. Ungurean,
    the Senior Vice President, Equipment, Procurement and
    Maintenance of our general partner.
Mr. Ungurean's 37 years of experience in the coal
    industry, over 25 of which have been spent running our
    operations or the operations of our predecessor and wholly owned
    subsidiary, Oxford Mining Company, provide him with the
    necessary skills to be a member of the board of directors of our
    general partner.
Jeffrey M. Gutman
has served as Senior Vice President,
    Chief Financial Officer and Treasurer of our general partner
    since April 2008. Prior to joining us, from 1991 to March 2008,
    Mr. Gutman served in a number of positions with The
    Williams Companies, Inc., an integrated natural gas company
    based in Tulsa, Oklahoma. His positions at the Williams
    Companies included Director of Capital Services from February
    1998 to April 2000, Director of Structured Finance from April
    2000 to December 2002, Chief Financial Officer of Gulf Liquids,
    a wholly-owned subsidiary of the Williams Companies, from
    December 2002 to December 2005, Director of Planning &
    Market Analysis from April 2005 to February 2008, and Commercial
    Development from December 2005 until joining our general partner
    in April 2008. Prior to joining the Williams Companies,
    Mr. Gutman was with Deloitte & Touche, LLP in
    their Tulsa office. Mr. Gutman is a certified public
    accountant in Oklahoma and holds a B.S. in Business
    Administration in Accounting from Oklahoma State University.
126
Table of Contents
Gregory J. Honish
has served as Senior Vice President,
    Operations of our general partner since March 2009.
    Mr. Honish has served in other capacities with us and our
    predecessor since January 1999, including Vice President, Mining
    and Business Development from September 2007 to March 2009 and
    Senior Mining Engineer from January 1999 to September 2007.
    Mr. Honish has held a balanced spectrum of engineering,
    operations and management positions in the coal mining industry
    during his 30 year professional career at mines in Northern
    Appalachia, Central Appalachia, the Illinois Basin and the PRB.
    He is a Licensed Professional Engineer in Ohio and West Virginia
    and a Certified Surface Mine Foreman in Ohio and Wyoming.
    Mr. Honish holds a B.S. in Mining Engineering from the
    University of Wisconsin.
Thomas T. Ungurean
has served as Senior Vice President,
    Equipment, Procurement and Maintenance of our general partner
    since March 2010, prior to which he was Vice President of
    Equipment from August 2007 to February 2010. In 1985,
    Mr. Ungurean co-founded our predecessor and wholly owned
    subsidiary, Oxford Mining Company. Since then he has served in
    various capacities with our predecessor, including Vice
    President and Secretary from September 2000 to August 2007.
    Mr. Ungurean is the brother of Charles C. Ungurean, the
    President and Chief Executive Officer and a member of the board
    of directors of our general partner.
Michael B. Gardner
has served as Secretary and General
    Counsel of our general partner since September 2007. Prior to
    joining us, from June 2004 until May 2007, Mr. Gardner
    served as Associate General Counsel of Murray Energy
    Corporation, the largest privately-owned coal mining company in
    the United States. While at Murray Energy, Mr. Gardner
    served as an officer of several Murray Energy subsidiaries,
    including Vice President of UMCO Energy, Inc. and Secretary of
    UMCO Energy, Inc., Maple Creek Mining, Inc., Maple Creek
    Processing, Inc., The Ohio Valley Coal Company, The Ohio Valley
    Transloading Company, Ohio Valley Resources, Inc., and Sunburst
    Resources, Inc., and represented these entities in a variety of
    corporate, financial, real property, labor, litigation,
    environmental, health, safety, governmental affairs and public
    relations matters. Mr. Gardner is a licensed attorney in
    Ohio with more than 30 years of experience in the coal
    industry and in environmental regulatory compliance management.
    He is an alternate member of the Board of Directors of the Ohio
    Coal Association. Mr. Gardner received a J.D. from Case
    Western Reserve University, an MBA from Ashland University and a
    B.S. in Environmental Biology from Ohio University.
Denise M. Maksimoski
has served as Senior Director of
    Accounting of our general partner since December 2009, prior to
    which she was Director, Financial Reporting and General
    Accounting from August 2008 to December 2009. Prior to joining
    us, from 1997 to 2008 Ms. Maksimoski was with
    Deloitte & Touche, LLP in Washington, D.C. and
    Columbus, Ohio in various positions including most recently as
    an Audit Senior Manager from August 2005 to August 2008 and as
    an Audit Manager from August 2003 to August 2005. While at
    Deloitte, Ms. Maksimoski gained extensive SEC reporting
    experience through leading large audit teams on public clients
    primarily in the energy and financial services industries.
    Ms. Maksimoski is a certified public accountant in the
    states of Ohio, Maryland and Virginia and in the District of
    Columbia. She received a B.A. degree in Accounting and Actuarial
    Studies from Thiel College.
Brian D. Barlow
was elected as a member of the board of
    directors of our general partner in August 2007. Mr. Barlow
    has been a Principal with AIM since January 2007. Prior to
    joining AIM, he was a Senior Securities Analyst for Scion
    Capital, a private investment partnership located in Cupertino,
    California, from August 2004 to August 2006 and was
    self-employed from August 2006 to January 2007. Mr. Barlow
    has 18 years of investing experience in both the public and
    private equity markets; and while at Scion, he focused on public
    and private investments in the energy and natural resources
    sectors. He received an MBA from Columbia Business School and a
    B.A. from the University of Washington.
Mr. Barlow's 18 years of investing experience, as
    well as his in-depth knowledge of the coal industry generally
    and our partnership in particular, provide him with the
    necessary skills to be a member of the board of directors of our
    general partner.
Matthew P. Carbone
was elected as a member of the board
    of directors of our general partner in August 2007.
    Mr. Carbone has been a Managing Director of AIM since he
    co-founded AIM in July 2006. Prior to co-founding AIM, from
    January 2005 until July 2006, Mr. Carbone was a Managing
    Director of MDC. Mr. Carbone has spent nearly 20 years
    in private equity and investment banking. Prior to MDC, he led
    Wit
127
Table of Contents
Capital Group's West Coast operations and worked in the
    investment banking divisions of Morgan Stanley, First Boston
    Corporation and Smith Barney. Mr. Carbone is a member of
    the board of directors of the general partner of Tunnel Hill
    Partners, an affiliate of AIM and C&T Coal.
    Mr. Carbone is also a member of the board of directors of
    the general partner of American Midstream Partners, LP. He
    received an MBA from Harvard Business School and a B.A. in
    Neuroscience from Amherst College.
Mr. Carbone's nearly 20 years of experience in
    corporate finance, as well as his in-depth knowledge of the coal
    industry generally and our partnership in particular, provide
    him with the necessary skills to be a member of the board of
    directors of our general partner.
Gerald A. Tywoniuk
was elected as a member of the board
    of directors of our general partner in January 2009. He is the
    Chief Financial Officer and acting Chief Executive Officer of
    Pacific Energy Resources Ltd., an oil and gas acquisition,
    exploitation and development company, and has been in that
    position since September 2009. Mr. Tywoniuk previously
    acted as an independent consultant in accounting and finance
    from March 2007 to June 2008. From December 2002 through
    November 2006, Mr. Tywoniuk was Senior Vice President
    and Chief Financial Officer of Pacific Energy Partners, LP. From
    November 2006 to March 2007, Mr. Tywoniuk assisted with the
    integration of Pacific Energy Partners, LP after it was acquired
    by Plains All American Pipeline, L.P. Mr. Tywoniuk holds a
    Bachelor of Commerce degree from The University of Alberta,
    Canada, and is a Canadian chartered accountant.
Mr. Tywoniuk joined Pacific Energy Resources Ltd. in June
    2008 as Senior Vice President, Finance to help the management
    team work through the company's financially distressed
    situation. In August 2008, he was appointed as the
    company's Chief Financial Officer. The board of the company
    elected to file for Chapter 11 protection in March 2009
    and, in September 2009, following the departure of the CEO and
    the President, Mr. Tywoniuk assumed the role of acting CEO.
    In December 2009, the company completed the sale of its assets,
    and is now working through the remaining steps of liquidation.
Mr. Tywoniuk has 28 years of experience in accounting
    and finance, including 12 years as the Chief Financial
    Officer of three public companies and Controller of a fourth
    public company. Mr. Tywoniuk's extensive accounting,
    financial and executive management experience, as well as his
    in-depth knowledge of the mining industry generally and our
    partnership in particular, and his prior experience with
    publicly traded partnerships, provide him with the necessary
    skills to be Chair of the Audit Committee of the board of
    directors of our general partner, where he also qualifies as an
    "audit committee financial expert."
Compensation
    Discussion and Analysis
The following is a discussion of the compensation policies and
    decisions of the board of directors of our general partner, or
    the Board, and the Compensation Committee with respect to the
    following individuals, who are executive officers of our general
    partner and referred to as the "named executive
    officers":
•
Charles C. Ungurean, President and Chief Executive Officer;
•
Jeffrey M. Gutman, Senior Vice President, Chief Financial
    Officer and Treasurer;
•
Thomas T. Ungurean, Senior Vice President, Equipment,
    Procurement and Maintenance;
•
Gregory J. Honish, Senior Vice President, Operations; and
•
Michael B. Gardner, Secretary and General Counsel.
Our compensation program is designed to recruit and retain as
    executive officers individuals with the highest capacity to
    develop, grow and manage our business, and to align their
    compensation with our short-term and long-term goals. To do
    this, our compensation program for executive officers is made up
    of the following components: (i) base salary, designed to
    compensate our executive officers for work performed during the
    fiscal year; (ii) short-term incentive programs, designed
    to reward our executive officers for our yearly performance and
    for their individual performances during the fiscal year; and
    (iii) equity-based awards, meant to align our executive
    officers' interests with our long-term performance.
128
Table of Contents
Role
    of the Board, the Compensation Committee and
    Management
Our general partner, under the direction of the Board, is
    responsible for the management of our operations and employs all
    of the employees that operate our business. Historically, from
    our formation in August 2007 through compensation decisions made
    in early 2010, decisions with respect to the compensation of
    executive officers were made by the Board, based primarily on
    negotiations between our management group and the directors on
    our Board that were not employees of our general partner. In
    connection with this offering, we have revised certain policies
    and practices with respect to executive compensation. In
    particular, the Board has appointed the Compensation Committee
    to help the board administer certain aspects of the compensation
    policies and programs for our executive officers and certain
    other employees and to make recommendations to the Board
    relating to the compensation of the directors and executive
    officers of our general partner. The Compensation Committee and
    the Board are charged with, among other things, the
    responsibility of reviewing executive officer compensation
    policies and practices to ensure (i) adherence to our
    compensation philosophies and (ii) that the total
    compensation paid to our executive officers is fair, reasonable
    and competitive.
The compensation programs for our executive officers consist of
    base salaries, annual incentive bonuses and awards under the
    Oxford Resource Partners, LP Long-Term Incentive Plan, which we
    refer to as our LTIP, in the form of equity-based phantom units,
    as well as other customary employment benefits. We expect that
    total compensation of our executive officers and the components
    and relative emphasis among components of their annual
    compensation will be reviewed on at least an annual basis by the
    Compensation Committee with any proposed changes recommended to
    the Board for final approval.
During 2009, the Board discussed compensation issues at several
    meetings. The Compensation Committee expects to hold
    compensation-related meetings for 2010 and in future years.
    Topics discussed and to be discussed at these meetings included
    and will include, among other things, (i) assessing the
    performance of the Chief Executive Officer, or the CEO, and
    other senior officers with respect to our results for the prior
    year, (ii) reviewing and assessing the personal performance
    of the senior officers for the preceding year and
    (iii) determining the amount of the bonus pool to be
    approved by the Board and paid to our executive officers for a
    given year after taking into account the target bonus levels
    established for those executive officers at the outset of the
    year. In addition, at these meetings, and after taking into
    account the recommendations of our CEO with respect to executive
    officers other than our CEO, base salary levels and target bonus
    levels (representing the bonus that may be awarded expressed as
    a percentage of base salary or as a dollar amount for the year)
    for our executive officers to be recommended to the Board will
    be established by the Compensation Committee. In addition, the
    Compensation Committee will make its recommendations to the
    Board with respect to any awards under the LTIP.
Compensation
    Objectives and Methodology
The principal objective of our executive compensation program is
    to attract and retain individuals of demonstrated competence,
    experience and leadership who share our business aspirations,
    values, ethics and culture. A further objective is to provide
    incentives to and reward our executive officers and other key
    employees for positive contributions to our business and
    operations, and to align their interests with our
    unitholders' interests.
In setting our compensation programs, we consider the following
    objectives:
•
to create unitholder value through sustainable earnings and cash
    available for distribution;
•
to provide a significant percentage of total compensation that
    is "at-risk" or variable;
•
to encourage significant equity holdings to align the interests
    of executive officers and other key employees with those of
    unitholders;
•
to provide competitive, performance-based compensation programs
    that allow us to attract and retain superior talent; and
129
Table of Contents
•
to develop a strong linkage between business performance,
    safety, environmental stewardship, cooperation and executive
    compensation.
Taking account of the foregoing objectives, we structure total
    compensation for our executives to provide a guaranteed amount
    of cash compensation in the form of competitive base salaries,
    while also providing a meaningful amount of annual cash
    compensation that is at risk and dependent on our performance
    and individual performances of the executives, in the form of
    discretionary annual bonuses. We also seek to provide a portion
    of total compensation in the form of equity-based awards under
    our LTIP, in order to align the interests of executives and
    other key employees with those of our unitholders and for
    retention purposes. Historically, we have not made regular
    annual grants of awards under our LTIP. Instead, such awards
    have typically been made in connection with our formation, upon
    commencement of employment for executives who joined us after
    our formation, and in discrete circumstances to reward service
    or performance. Going forward, we expect that equity-based
    awards will be made more regularly and that equity-based awards
    will become more prominent in our annual compensation
    decision-making process.
Compensation decisions for individual executive officers are the
    result of the subjective analysis of a number of factors,
    including the individual executive officer's experience,
    skills or tenure with us and changes to the individual executive
    officer's position. In measuring the contributions of
    executive officers and our performance, a variety of financial
    measures are considered, including non-GAAP financial measures
    used by management to assess our financial performance, such as
    Adjusted EBITDA and cash available for distribution. For a
    definition of Adjusted EBITDA, please read "Selected
    Historical and Pro Forma Consolidated Financial and Operating
    Data." For a discussion of the general concept of
    "cash available for distribution," please read
    "Cash Distribution Policy and Restrictions on
    Distributions." In addition, a variety of factors related
    to the individual performance of the executive officer are taken
    into consideration.
In making individual compensation decisions, the Board
    historically has not relied on pre-determined performance goals
    or targets. Instead, determinations regarding compensation have
    been and are expected to continue to be the result of the
    exercise of judgment based on all reasonably available
    information and, to that extent, are discretionary. Each
    executive officer's current and prior compensation is
    considered in setting future compensation. The amount of each
    executive officer's current compensation is considered as a
    base against which determinations are made as to whether
    increases are appropriate to retain the executive officer in
    light of competition or in order to provide continuing
    performance incentives. The Board has discretion to adjust any
    of the components of compensation to achieve our goal of
    recruiting, promoting and retaining as executive officers,
    individuals with the skills necessary to execute our business
    strategy and develop, grow and manage our business.
Prior to 2010, we did not review executive compensation against
    a specific group of comparable companies. Rather, the Board has
    historically relied upon the judgment and industry experience of
    its non-employee directors in making decisions with respect to
    total compensation and with respect to the allocation of total
    compensation among our three main components of compensation.
    Going forward, we expect that the Compensation Committee will
    make compensation recommendations to the Board based upon trends
    occurring within our industry, including from a peer group of
    companies that our Compensation Committee has recently
    identified, which includes the following coal companies and
    similar-sized publicly traded partnerships: Alliance Resource
    Partners, L.P., National Coal Corp., Westmoreland Coal Co.,
    James River Coal Co., International Coal Group, Inc., Patriot
    Coal Corporation, Vanguard Natural Resources, LLC, Global
    Partners LP, Legacy Reserves LP, Copano Energy LLC, Suburban
    Propane Partners LP and Crosstex Energy Inc.
Elements
    of the Compensation Programs
Overall, the executive officer compensation programs are
    designed to be consistent with the philosophy and objectives set
    forth above. The principal elements of our executive officer
    compensation programs are summarized in the table below,
    followed by a more detailed discussion of each compensation
    element.
130
Table of Contents
Element
Characteristics
Purpose
Base Salaries
Fixed annual cash compensation. Executive officers are eligible
    for periodic increases in base salaries. Increases may be based
    on performance or such other factors as the Board or the
    Compensation Committee may determine.
Keep our annual compensation competitive with the defined market
    for skills and experience necessary to execute our business
    strategy.
Annual Incentive
Bonuses
Performance-related annual cash incentives earned based on our
    objectives and individual performance of the executive officers.
    Beginning in 2010, trends for our peer group will be taken into
    account in setting future annual cash incentive awards for our
    executive officers.
Align performance to our objectives that drive our business and
    reward executive officers for achievement of both our
    performance objectives and individual performance objectives.
    Amounts earned for achievement of target performance levels are
    designed to provide competitive total direct compensation;
    potential for awards above or below target amounts are intended
    to motivate executive officers to achieve or exceed our
    financial and operational goals.
Equity-Based Awards
(phantom-units)
Performance-related, equity-based awards granted at the
    discretion of the Board.  Awards are based on our performance
    and, beginning in 2010, will be based on competitive practices
    at peer companies. Grants typically vest ratably over four years
    and will be settled upon vesting with either a net cash payment
    or an issuance of common units, at the discretion of the Board.
Align interests of executive officers with unitholders and
    motivate and reward executive officers to increase unitholder
    value over the long term. Ratable vesting over a four-year
    period is designed to facilitate retention of executive
    officers.
131
Table of Contents
Element
Characteristics
Purpose
Retirement Plan
Qualified retirement plan benefits are available for our
    executive officers and all other regular full-time employees.
    Through 2009, we maintained a defined contribution money
    purchase pension plan to which we made contributions for the
    benefit of the participants. Effective with 2010, we have
    adopted and are maintaining a tax-deferred or after-tax 401(k)
    plan in which all eligible employees can elect to defer
    compensation for retirement up to IRS imposed limits. The 401(k)
    plan permits us to make annual discretionary contributions to
    the plan, even if the participants do not contribute, as a
    percentage of the eligible compensation of participants in the
    plan.  Annual contributions of 3% or more of such eligible
    compensation will maintain "safe harbor" tax-qualified
    status for the plan, and while it is discretionary, we intend
    generally to make annual contributions at that level or higher.
    For 2010, we have committed to make an employer discretionary
    contribution of 4% of such eligible compensation.
Provide our executive officers and other employees with the
    opportunity to save for their future retirement.
Health and Welfare
Benefits
Health and welfare benefits (medical, dental, vision, disability
    insurance and life insurance) are available for our executive
    officers and all other regular full-time employees.
Provide benefits to meet the health and wellness needs of our
    executive officers and other employees and their families.
Base
    Salaries
Design.
Base salaries for our executive
    officers are determined annually by an assessment of our overall
    financial and operating performance, each executive
    officer's performance evaluation and changes in executive
    officer responsibilities. While many aspects of performance can
    be measured in financial terms, senior management is also
    evaluated in areas of performance that are more subjective.
    These areas include the development and execution of strategic
    plans, the exercise of leadership in the development of
    management and other employees, innovation and improvement in
    our business activities and each executive officer's
    involvement in industry groups and in the communities that we
    serve. We seek to compensate executive officers for their
    performance throughout the year with annual base salaries that
    are fair and competitive within our marketplace. We believe that
    executive officer base salaries should be competitive with
    salaries for executive officers in similar positions and with
    similar responsibilities in our marketplace and adjusted for
    financial and operating performance and each executive
    officer's performance evaluation, length of service with us
    and previous work experience. Individual salaries have
    historically been established by the Board based on the general
    industry knowledge and experience of the directors on our Board
    that were not employees of our general partner, in alignment
    with these considerations and with reference to industry survey
    data, to ensure the attraction, development and retention of
    superior talent. Going forward, we expect that determinations
    will continue to focus on the above considerations and will also
    be made based upon relevant market data, including data from our
    peer group.
132
Table of Contents
Base salaries are reviewed annually to ensure continuing
    consistency with market levels and our level of financial
    performance during the previous year. Future adjustments to base
    salaries and salary ranges will reflect average movement in the
    competitive market as well as individual performance. Annual
    base salary adjustments, if any, for the CEO have been
    determined by the directors on our Board that are not employees
    of our general partner, or the Non-employee Directors. After
    this offering, annual base salary adjustments for the CEO will
    be approved by the Non-employee Directors based upon
    recommendations from the Compensation Committee. Annual base
    salary adjustments, if any, for the other executive officers
    have been determined by the Board taking into account input from
    the CEO. After this offering, annual base salary adjustments for
    the other executive officers will be approved by the Board based
    upon recommendations from the Compensation Committee, which
    recommendations may take into account input from the CEO.
Actions Taken With Respect to Base Salaries in
    2009.
Effective May 1, 2009 (except
    effective March 30, 2009 in the case of Gregory J. Honish),
    the Board provided base salary increases to each of the named
    executive officers as provided in the table below. These base
    salary increases were provided as "merit" increases
    based on the Board's subjective assessment of each named
    executive officer's performance in 2008 and early 2009,
    considering a variety of factors, none of which was individually
    material to such assessment, and to ensure that the base
    salaries for the named executive officers remained competitive
    with other companies in our industry. In addition, for Gregory
    J. Honish, the increase reflected in part his promotion to
    Senior Vice President, Operations.
Base Salary at
Base Salary Increase
2009 Base Salary
Name
Start of 2009
in 2009
Following Increase
Charles C. Ungurean
$
300,000
$
75,000
$
375,000
Jeffrey M. Gutman
250,000
10,000
260,000
Thomas T. Ungurean
200,000
25,000
225,000
Gregory J. Honish
110,000
40,000
150,000
Michael B. Gardner
133,000
12,000
145,000
Annual
    Incentive Bonuses
Design.
As one way of accomplishing
    compensation objectives, executive officers are rewarded for
    their contribution to our financial and operational success
    through the award of discretionary annual cash incentive
    bonuses. Annual incentive awards, if any, for the CEO have been
    determined by the Non-employee Directors. After this offering,
    annual incentive awards, if any, for the CEO will be approved by
    the Non-employee Directors based upon recommendations from the
    Compensation Committee. Annual incentive awards, if any, for the
    other executive officers have been determined by the Board
    taking into account input from the CEO. After this offering,
    annual incentive awards for the other executive officers will be
    approved by the Board based upon recommendations from the
    Compensation Committee, which recommendations may take into
    account input from the CEO.
While target bonuses for our executive officers are initially
    set at percentages or dollar amounts that are 50% to 75% of
    their base salaries, the Board has broad discretion to retain,
    reduce or increase the award amounts when making its final bonus
    determinations. For executive officers other than Charles C.
    Ungurean and Thomas T. Ungurean, certain target bonus amounts
    were individually negotiated with the executive officers and are
    set forth in their employment agreements, which are discussed in
    more detail under "— Employment and Severance
    Agreements" below. Although the employment agreements for
    Charles C. Ungurean and Thomas T. Ungurean provide that these
    executives are not eligible to receive annual incentive bonuses,
    the Board has historically paid annual bonuses to these
    executive officers in order to motivate them to achieve superior
    performance and to provide them with competitive amounts of
    total compensation.
The annual incentive bonus award for each executive officer is
    contingent on the executive officer's continued employment
    with our general partner at the time of the award. Further,
    bonuses (similar to other elements of the compensation provided
    to executive officers) are not based on a prescribed formula or
    pre-determined goals or specified performance targets but rather
    have been determined on a subjective basis and generally have
    been based on a subjective evaluation of individual,
    company-wide and industry performances.
133
Table of Contents
The Board and the Compensation Committee believe that this
    approach to assessing performance results in a more
    comprehensive evaluation for compensation decisions. The Board
    has recognized, and the Compensation Committee will recognize,
    the following factors in making discretionary annual bonus
    recommendations and determinations:
•
a subjective performance evaluation based on company-wide
    financial and individual qualitative performance, as determined
    in the Board's discretion; and
•
the scope, level of expertise and experience required for the
    executive officer's position.
These factors were selected as the most appropriate measures
    upon which to base the annual incentive cash bonus decisions
    because our Board believes that they help to align individual
    compensation with competency and contribution. With respect to
    its evaluation of company-wide financial performance, although
    no pre-determined numerical goals are established, the Board
    generally reviews our results with respect to Adjusted EBITDA
    and cash available for distribution in making annual bonus
    determinations.
Following its performance assessment, and based on our financial
    performance with respect to these criteria and the Board's
    qualitative assessment of individual performance, and in order
    to provide total cash compensation for the year that was
    competitive and consistent with total cash compensation provided
    by other companies in our industry, as determined by the
    directors on the Board who are not employees of our general
    partner and based on their industry knowledge and experience,
    the Board determined to award the incentive bonus amounts set
    forth in the table below to our named executive officers for
    performance in 2009. For the named executive officers with
    target bonus amounts set forth in their employment agreements,
    these awards represented approximately 85%-90% of the applicable
    target bonus amounts.
Name
2009
    Bonus
(1)
Charles C. Ungurean
$
225,000
Jeffrey M. Gutman
112,500
Thomas T. Ungurean
175,000
Gregory J. Honish
63,750
Michael B. Gardner
61,625
(1)
Amounts shown in this column do not include vacation pay amounts
    included in bonus amounts in the Summary Compensation Table for
    2009 below.
Beginning in 2010, the Compensation Committee expects that it
    will base annual incentive compensation award recommendations on
    additional company-wide criteria as well as industry criteria,
    recognizing the following factors as part of its determination
    of annual incentive bonuses (without assigning any particular
    weighting to any factor):
•
financial performance for the prior fiscal year, including
    Adjusted EBITDA and cash available for distribution, in
    comparison to guidance provided to the marketplace during the
    prior fiscal year;
•
distribution performance for the prior fiscal year compared to
    the peer group;
•
unitholder total return for the prior fiscal year compared to
    the peer group; and
•
competitive compensation data of executive officers in the peer
    group.
These factors were selected as the most appropriate measures
    upon which to base the annual cash incentive bonus decisions
    going forward because the Compensation Committee believes that
    they will most directly correlate to increases in long-term
    value for our unitholders.
Equity-Based
    Awards
Design.
The LTIP was adopted in 2007 in
    connection with our formation. In adopting the LTIP, the Board
    recognized that it needed a source of equity to attract new
    members to and retain members of the
134
Table of Contents
management team, as well as to provide an equity incentive to
    other key employees. We believe the LTIP promotes a long-term
    focus on results and aligns executive and unitholder interests.
The LTIP is designed to encourage responsible and profitable
    growth while taking into account non-routine factors that may be
    integral to our success. Long-term incentive compensation in the
    form of equity grants are used to incentivize performance that
    leads to enhanced unitholder value, encourage retention and
    closely align the executive officers' interests with
    unitholders' interests. Equity grants provide a vital link
    between the long-term results achieved for our unitholders and
    the rewards provided to executive officers and other key
    employees. The equity grants we made upon adoption of the LTIP
    were designed to be comparable with long-term incentive plans of
    other coal production companies and coal master limited
    partnerships, based upon the industry knowledge and experience
    of the directors on the Board who are not employees of our
    general partner, and on individual negotiations with the named
    executive officers.
Phantom Units.
The only awards made under the
    LTIP since its adoption have been phantom units. Phantom units
    are a notional unit granted under the LTIP that entitles the
    holder to receive an amount of cash equal to the fair market
    value of one common unit upon vesting of the phantom unit,
    unless the Board elects to pay such vested phantom unit with a
    common unit in lieu of cash. Unvested phantom units are
    forfeited at the time the holder terminates employment. In
    general, phantom units awarded under our LTIP vest as to 25% of
    the award on the initial vesting date established at the time of
    the award and on each of the first three anniversaries of that
    initial vesting date.
Equity-Based Award Policies.
Prior to 2010,
    equity-based awards were granted by the Board and were limited
    to the grants at our formation in 2007 (or for executives who
    joined us after our formation, upon or in connection with their
    commencement of employment) and grants that were made in certain
    limited circumstances to reward individual service and
    performance. In early 2010, the Board delegated a portion of its
    duties and responsibilities under the LTIP to the Compensation
    Committee. Going forward, we expect that equity-based awards
    will be awarded more regularly, as part of the ongoing total
    annual compensation package for executive officers, rather than
    only in such discrete circumstances. After this offering, annual
    equity compensation grants, if any, for the CEO will be approved
    by the Non-employee Directors based upon recommendations from
    the Compensation Committee. Equity compensation grants, if any,
    for the other executive officers have been determined by the
    Board taking into account input from the CEO. After this
    offering, annual equity compensation grants for the other
    executive officers will be approved by the Board based upon
    recommendations from the Compensation Committee, which
    recommendations may take into account input from the CEO.
Equity-Based Awards for 2009.
None of our
    named executive officers received any equity-based awards under
    the LTIP in 2009. However, in January 2010, Jeffrey M. Gutman
    received an award of 14,984 phantom units in recognition of his
    performance in connection with a restructuring of certain of our
    indebtedness and the completion of the Phoenix Coal acquisition
    in September 2009. In making this award, the Board also took
    into account its determination that the initial equity awards
    granted to Mr. Gutman in connection with his commencement
    of employment in 2008 were, in the Board's view based on
    its general industry knowledge and experience, below the level
    of equity participation granted to similarly situated executives
    at many other companies in our industry.
Deferred
    Compensation
Tax-deferred retirement plans are a common way that companies
    assist employees in preparing for retirement. Through 2009, we
    maintained a defined contribution money purchase pension plan to
    which we made contributions for the benefit of the participants,
    including named executive officers. Effective beginning in 2010,
    we provide our eligible executive officers and other employees
    with an opportunity to participate in our tax-deferred or
    after-tax 401(k) savings plan. The plan allows executive
    officers and other employees to defer compensation for
    retirement up to IRS imposed limits (for 2010, $16,500 for
    participants age 49 and under and $22,000 for participants
    age 50 and over). The 401(k) plan permits us to make annual
    discretionary contributions to the plan as a percentage of the
    eligible compensation of participants in the plan. Annual
    contributions of 3% or more of such eligible compensation will
    maintain "safe harbor" tax-qualified status for
135
Table of Contents
the plan, and while it is discretionary we intend generally to
    make annual contributions at that level or higher. For 2010, we
    have committed to make an employer discretionary contribution of
    4% of such eligible compensation. Decisions regarding this
    element of compensation do not impact any other element of
    compensation.
Perquisites
    and Other Benefits
Although perquisites are not a significant factor in our
    compensation programs, we provide certain limited perquisite and
    personal benefits to certain of the named executive officers,
    including the use primarily for business purposes (with personal
    usage being limited to usage for commuting purposes) of
    company-owned automobiles for Charles C. Ungurean and Thomas T.
    Ungurean. We provide these benefits to assist the executive
    officers in performing their services for us and they are not
    factored into the Board's determinations with respect to
    other elements of total compensation. In addition, under our
    company-wide policy in effect through 2009, we maintained for
    all salaried employees including the executive officers a
    vacation program that provided additional annual payments to
    each of our salaried employees including the executive officers
    in the amount of his or her base salary over a period equal to
    the vacation time allotted to him or her. This payment was in
    addition to continuing the payment of base salaries for all
    salaried employees including the executive officers during
    periods when they were on vacation. Effective in 2010, the
    vacation policy was changed so that no such additional payments
    are made but base salaries will continue to be paid to the
    salaried employees including the executive officers while they
    are on vacation. The additional vacation-related payments made
    to the named executive officers for 2009 are included in bonus
    amounts and set forth in a footnote to the Summary Compensation
    Table for 2009 below.
Recoupment
    Policy
We currently do not have a recoupment policy applicable to
    annual incentive bonuses or equity awards. The Compensation
    Committee expects to continue to evaluate the need to adopt such
    a policy, in light of current legislative policies as well as
    economic and market conditions.
Employment
    and Severance Arrangements
The Board and the Compensation Committee consider the
    maintenance of a sound management team to be essential to
    protecting and enhancing our best interests. To that end, we
    recognize that the uncertainty that may exist among management
    with respect to their "at-will" employment with our
    general partner may result in the departure or distraction of
    management personnel to our detriment. Accordingly, our general
    partner has entered into employment agreements with each of our
    named executive officers, which employment agreements contain
    severance arrangements that we believe are appropriate to
    encourage the continued attention and dedication of members of
    our management. These employment agreements are described more
    fully below under "— Potential Payment Upon
    Termination or Change in Control — Employment
    Agreements with Named Executive Officers."
136
Table of Contents
Summary
    Compensation Table for 2009
The following table sets forth certain information with respect
    to the compensation paid to the named executive officers for the
    year ended December 31, 2009.
All Other
Bonus
Compensation
Total
Name and Principal Position
Salary
    ($)
(1)
($)
(2)
($)
(3)
($)
Charles C. Ungurean
President and Chief Executive Officer
$
375,002
$
248,077
$
17,702
$
640,781
Jeffrey M. Gutman
Senior Vice President, Chief Financial Officer and Treasurer
261,385
125,481
15,370
402,236
Thomas T. Ungurean
Senior Vice President, Equipment, Procurement and Maintenance
233,333
190,385
16,079
439,797
Gregory J. Honish
Senior Vice President, Operations
142,116
70,096
12,771
224,983
Michael B. Gardner
Secretary and General Counsel
152,083
75,567
13,560
241,210
(1)
Amounts shown in this column represent base salaries paid to the
    named executive officers in 2009 and include pro-rated amounts
    based on the increases in base salaries that occurred in 2009.
(2)
The bonus amounts for the named executive officers reflect
    bonuses paid in late 2009 and early 2010 that relate to services
    performed in 2009, in the following amounts for each of the
    named executive officers: Charles C. Ungurean: $225,000; Jeffrey
    M. Gutman: $112,500; Thomas T. Ungurean: $175,000; Gregory J.
    Honish: $63,750; and Michael B. Gardner: $61,625. The bonus
    amounts also include vacation payments in 2009 (including in the
    case of Michael B. Gardner an additional payment in early 2010
    with respect to cancelled vacation time in late 2009 during
    which he performed services for us), as follows: Charles C.
    Ungurean: $23,077; Jeffrey M. Gutman: $12,981; Thomas T.
    Ungurean: $15,385; Gregory J. Honish: $6,346; and Michael B.
    Gardner: $13,942.
(3)
Amounts shown in this column include contributions being made to
    our defined contribution money purchase pension plan for each of
    the named executive officers with respect to services performed
    in 2009, payments made in 2009 with respect to life insurance
    benefits provided to each of the named executive officers and a
    holiday-related allowance paid in 2009 to each of the named
    executive officers. For each of Charles C. Ungurean and Thomas
    T. Ungurean, who are provided company-owned automobiles
    primarily for business use (with personal use being limited to
    usage for commuting purposes), the amount shown also includes
    the cost to us of providing an automobile to them for their use
    for the estimated personal usage portion thereof for commuting
    purposes (20% of the total cost in the case of Charles C.
    Ungurean and 5% of the total cost in the case of Thomas T.
    Ungurean) in the amount of $2,248 and $660, respectively.
Grants of
    Plan-Based Awards for 2009
The named executive officers received no grants of plan-based
    awards during the year ended December 31, 2009.
Outstanding
    Equity-Based Awards at December 31, 2009
The following table provides information regarding outstanding
    equity-based awards held by the named executive officers as of
    December 31, 2009. All such equity-based awards consist of
    phantom units granted
137
Table of Contents
under the LTIP. Neither Charles C. Ungurean nor Thomas T.
    Ungurean held any outstanding equity-based awards at
    December 31, 2009. None of the named executive officers
    hold outstanding option awards.
Unit Awards
Market Value of
Number of Phantom
Phantom Units That
Units That have Not
Have Not Vested
Name
Vested
(1)
($)
(2)
Jeffrey M. Gutman
Senior Vice President, Chief Financial Officer and Treasurer
14,848
$
258,801
Gregory J. Honish
Senior Vice President, Operations
5,128
89,381
Michael B. Gardner
Secretary and General Counsel
3,204
55,846
(1)
Mr. Gutman's remaining unvested units, which were
    granted in 2008, will vest 50% on March 31, 2010 and 50% on
    March 31, 2011. Messrs. Honish's and
    Gardner's remaining unvested units, which were granted in
    2007, will vest 50% on December 1, 2010 and 50% on
    December 1, 2011.
(2)
Based on the fair market value of our common units of $17.43 on
    December 31, 2009.
Units
    Vested in 2009
The following table shows the phantom unit awards that vested
    during 2009. Charles C. Ungurean and Thomas T. Ungurean did not
    hold or vest in any phantom unit awards in 2009 and none of the
    named executive officers held or exercised any stock options in
    2009.
Number of
Units Acquired
Value Realized on
Name
on Vesting (#)
Vesting ($)
Jeffrey M. Gutman
Senior Vice President, Chief Financial Officer and
    Treasurer
(1)
7,425
$
83,160
Gregory J. Honish
Senior Vice President,
    Operations
(2)
2,564
44,691
Michael B. Gardner
Secretary and General
    Counsel
(2)
1,603
27,940
(1)
Mr. Gutman's units vested on March 31, 2009, and
    the value realized amount reflects a unit value of $11.20 per
    unit, the fair market value on such vesting date.
(2)
Units vested on December 1, 2009, and the value realized
    amounts reflect a unit value of $17.43 per unit, the fair
    market value on such vesting date.
Pension
    Benefits
The named executive officers do not participate in any pension
    plans and received no pension benefits (other than with respect
    to our defined contribution money purchase pension plan) during
    the year ended December 31, 2009.
Nonqualified
    Deferred Compensation
The named executive officers do not participate in any
    nonqualified deferred compensation plans and received no
    nonqualified deferred compensation during the year ended
    December 31, 2009.
138
Table of Contents
Potential
    Payment Upon Termination or Change in Control
Employment
    Agreements with Named Executive Officers
Messrs. Charles Ungurean, Gutman, Thomas Ungurean, Honish
    and Gardner have each entered into employment agreements with
    our general partner. Each of the employment agreements had an
    initial term of two years, with the exception of that of
    Mr. Gardner which had an initial term of one year. The
    employment agreements are each automatically renewable for
    successive one-year periods unless terminated by providing at
    least 90 days written notice prior to the commencement of
    the next succeeding one-year period. The agreements establish
    customary employment terms including base salaries, bonuses and
    other incentive compensation and other benefits.
The employment agreements provide for, among other things, the
    payment of severance benefits and in some cases the continuation
    of certain benefits following certain terminations of employment
    by our general partner prior to the expiration of the term
    described in each of the employment agreements or the
    termination of employment for "Good Reason" (as
    defined in each of the employment agreements) by the executive
    officer. If the executive's employment is terminated by the
    general partner without "Cause" (as defined in the
    employment agreements) or the executive resigns for Good Reason,
    the executive will have the right to a lump sum cash payment by
    our general partner equal to one times (two times with respect
    to Charles C. Ungurean and Thomas T. Ungurean) the
    executive's annual base salary on the date of such
    termination, which will be subject to reimbursement by us to our
    general partner. In addition, for Messrs. Charles Ungurean
    and Thomas Ungurean, in the event of a termination due to death
    or disability (as such term is defined in the employment
    agreements), or by our general partner without Cause, the
    executive and his dependents will be entitled to continued
    participation in our general partner's employee benefit
    plans and insurance arrangements providing medical and dental
    benefits in which they are enrolled at the time of such
    termination for the remainder of the employment term, provided
    that the continuation is permitted at the time of termination
    under the terms of our general partner's employee benefit
    plans and insurance arrangements. Each of the foregoing
    severance benefits are conditioned on the executive executing a
    release of claims in favor of our general partner and its
    affiliates including us.
"Cause" is defined in each employment agreement as the
    executive having (i) engaged in gross negligence, gross
    incompetence or willful misconduct in the performance of the
    duties required of him hereunder, (ii) refused without
    proper reason to perform the duties and responsibilities
    required of him hereunder, (iii) willfully engaged in
    conduct that is materially injurious to our general partner or
    its affiliates including us (monetarily or otherwise),
    (iv) committed an act of fraud, embezzlement or willful
    breach of fiduciary duty to our general partner or an affiliate
    including us (including the unauthorized disclosure of
    confidential or proprietary material information of our general
    partner or an affiliate including us or, in the case of
    Mr. Gutman's employment agreement only, including
    instead the unauthorized disclosure of information that is, and
    is known or reasonably should have been known to the executive
    to be, confidential or proprietary information of our general
    partner or an affiliate including us) or (v) been convicted
    of (or pleaded no contest to) a crime involving fraud,
    dishonesty or moral turpitude or any felony. "Good
    Reason" is defined in each employment agreement as a
    termination by the executive in connection with or based upon
    (i) a material diminution in the executive's
    responsibilities, duties or authority, (ii) a material
    diminution in the executive's base compensation or
    (iii) a material breach by us of any material provision of
    the employment agreement (and, in the case of
    Mr. Gutman's employment agreement, a breach of
    obligations with respect to his LTIP awards).
Each employment agreement also contains certain confidentiality
    covenants prohibiting each executive officer from, among other
    things, disclosing confidential information relating to our
    general partner or any of its affiliates including us. The
    employment agreements also contain non-competition and
    non-solicitation restrictions continuing for a period of two
    years (one year in the case of the employment agreements for
    Messrs. Honish and Gardner) following termination of
    employment.
Mr. Gutman's employment agreement also provides that,
    upon a change in control with respect to us or our general
    partner, Mr. Gutman will be entitled to accelerated vesting
    of all of his unvested awards under the LTIP. Assuming that a
    change in control with respect to us or our general partner had
    occurred on December 31, 2009, Mr. Gutman would have
    been entitled to accelerated vesting with respect to 14,848
139
Table of Contents
phantom units that he held as of such date, having a fair market
    value on such date of $258,801. In addition,
    Mr. Gutman's employment agreement provides that, at
    the time of an initial public offering involving us in which a
    profits interest plan is adopted by our general partner,
    Mr. Gutman will receive a 0.5% profits participation
    interest in our general partner. The interest would vest over
    the four-year period following the date of grant of the
    interest, and would be subject to accelerated vesting upon a
    change in control.
The following table shows the value of the severance benefits
    and other benefits for the named executive officers under the
    employment agreements, assuming each named executive officer had
    terminated employment on December 31, 2009.
Death or
Termination
Resignation for
Disability
Without Cause
Good Reason
Name
Payment Type
($)
($)
($)
Charles C. Ungurean
Cash severance
$
750,000
$
750,000
Benefit continuation
$
10,769
10,769
Total
10,769
760,769
750,000
Thomas T. Ungurean
Cash severance
450,000
450,000
Benefit continuation
9,212
9,212
Total
9,212
459,212
450,000
Jeffrey M. Gutman
Cash severance
260,000
260,000
Gregory J. Honish
Cash severance
150,000
150,000
Michael B. Gardner
Cash severance
145,000
145,000
Long-Term
    Incentive Plan
The board of directors of our general partner has adopted our
    LTIP for employees, consultants and directors of our general
    partner and affiliates who perform services for us. The LTIP
    includes five components: options, distribution equivalent
    rights, phantom units, restricted units and unit awards. The
    LTIP limits the number of units that may be delivered pursuant
    to awards of common units. Units withheld to satisfy exercise
    prices or tax withholding obligations are available for delivery
    pursuant to other awards. The plan is administered by the board
    of directors of our general partner or a committee thereof
    (effective in 2010, the Compensation Committee), which we refer
    to as the plan administrator.
The plan administrator may terminate or amend the LTIP at any
    time with respect to any units for which a grant has not yet
    been made. The plan administrator also has the right to alter or
    amend the LTIP or any part thereof from time to time, including
    increasing the number of units that may be granted, subject to
    unitholder approval as required by the exchange upon which the
    common units are listed at that time. However, no change in any
    outstanding grant may be made that would materially reduce the
    benefits of the participant without the consent of the
    participant. The plan will expire when units are no longer
    available under the plan for grants, upon its termination by the
    plan administrator or upon the tenth anniversary of the date
    that the LTIP was adopted by our general partner (or such
    earlier anniversary, if any, required by the rules of the
    exchange on which our common units are listed at that time).
Retirement
    Plan
We provide qualified retirement plan benefits to our executive
    officers and all other eligible employees. Through 2009, we
    maintained a defined contribution money purchase pension plan to
    which we made contributions for the benefit of the participants.
    Effective with 2010, we adopted a tax-deferred or after-tax
    401(k) plan in which all eligible employees can elect to defer
    compensation for retirement. We use the 401(k) plan to assist
    our eligible employees in saving for retirement on a
    tax-deferred or after-tax basis. The 401(k) plan permits all
    eligible employees to make voluntary pre-tax contributions to
    the plan, subject to applicable tax limitations. Employee
    contributions are subject to annual dollar limitations (for
    2010, $16,500 for participants age 49 and under and $22,000
    for participants age 50 and over), which are periodically
    adjusted for inflation. The tax deferred 401(k) plan is intended
    to be tax-qualified under section 401(a) of the Internal
    Revenue Code so that contributions to the plan, and income
    earned on plan contributions, are not taxable to employees until
    withdrawn from the plan and so that tax-deferred contributions,
    if any, will be deductible
140
Table of Contents
when made. The plan permits us to make annual discretionary
    contributions to the plan as a percentage of the eligible
    compensation of participants in the plan. Annual contributions
    of 3% or more of such eligible compensation will maintain
    "safe harbor" tax-qualified status for the plan, and
    while it is discretionary we intend generally to make annual
    contributions at that level or higher. For 2010, we have
    committed to make an employer discretionary contribution of 4%
    of such eligible compensation.
Compensation
    of Directors
Our general partner's non-employee directors are
    compensated for their service as directors under our general
    partner's Non-Employee Director Compensation Plan. Our
    non-employee directors are directors that (i) are not an
    officer or employee of our general partner or any of its
    subsidiaries or affiliates, (ii) are not affiliated with or
    related to any party that receives compensation from our general
    partner or any of its subsidiaries and affiliates, and
    (iii) have not entered into an arrangement with our general
    partner or any of its subsidiaries and affiliates to receive
    compensation from any such entity other than in respect of his
    services as a member of the Board. Each non-employee director
    will receive an annual compensation package consisting of the
    following: (i) a $30,000 cash retainer,
    (ii) restricted common units valued at $20,000 in the
    aggregate and (iii) where applicable, a $10,000 cash
    retainer for each committee chair position held. In addition,
    each non-employee director will receive per meeting fees of:
    (i) $1,000 for Board meetings attended in person,
    (ii) where applicable, $500 for Board committee meetings
    attended in person and (iii) $500 for telephonic Board
    meetings and committee meetings greater than one hour in length.
    Furthermore, each non-employee director may elect, with approval
    of the Compensation Committee, to receive the cash components,
    as outlined above, in the form of restricted common units
    representing an equivalent value at the date of issuance. The
    annual compensation package is paid to each non-employee
    director based on his or her service on the Board for the period
    beginning upon the date of his or her appointment to the Board.
    If a non-employee director's service on the Board commences
    on or after the first day of a fiscal year, such non-employee
    director will receive a prorated annual compensation package for
    such fiscal year. Restricted units awarded to non-employee
    directors under the annual compensation package or upon first
    election to the Board are granted under the LTIP and vest on the
    date of grant. Cash distributions are to be paid on these
    restricted units. Each non-employee director is also reimbursed
    for
out-of-pocket
expenses in connection with attending meetings of the Board or
    its committees. Each director will be fully indemnified by us
    for actions associated with being a director of our general
    partner to the extent permitted under Delaware law.
Director
    Compensation Table for 2009
The following table sets forth the compensation paid to our
    non-employee directors for the year ended December 31,
    2009, as described above. None of our non-employee directors
    held any unvested units as of December 31, 2009.
Fees Earned or
Name
Paid in Cash ($)
Unit Awards
    ($)
(1)
Total ($)
Gerald A. Tywoniuk
$
30,000
$
20,010
$
50,010
(1)
The amount in this column represents unit awards made to
    directors under the LTIP in 2009. These awards were granted and
    vested on December 1, 2009 and had a fair value of $17.43
    per unit on such date.
141
Table of Contents
SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information regarding the
    beneficial ownership of units following the consummation of this
    offering and the related transactions by:
•
each person who is known to us to beneficially own more than 5%
    or more of such units to be outstanding;
•
our general partner;
•
each of the named directors and executive officers of our
    general partner; and
•
all of the directors and executive officers of our general
    partner as a group.
All information with respect to beneficial ownership has been
    furnished by the respective directors, officers or 5% or more
    unitholders as the case may be.
Our general partner is owned 33.7% by C&T Coal and 66.3% by
    AIM Oxford (both of which are reflected as 5% or more
    unitholders in the table below). C&T Coal is owned by
    Charles C. Ungurean and Thomas T. Ungurean, each a member of our
    management team, and AIM Oxford is owned by AIM Coal LLC and
    certain investment partnerships affiliated with AIM.
The amounts and percentage of units beneficially owned are
    reported on the basis of regulations of the SEC governing the
    determination of beneficial ownership of securities. Under the
    rules of the SEC, a person is deemed to be a "beneficial
    owner" of a security if that person has or shares
    "voting power," which includes the power to vote or to
    direct the voting of such security, or "investment
    power," which includes the power to dispose of or to direct
    the disposition of such security. Except as indicated by
    footnote, the persons named in the table below have sole voting
    and investment power with respect to all units shown as
    beneficially owned by them, subject to community property laws
    where applicable.
The percentage of units beneficially owned is based on a total
    of     common units
    and          
    subordinated units outstanding immediately following this
    offering.
Percentage of
Percentage of
Subordinated
Subordinated
Percentage of
Common Units
Common Units
Units to be
Units to be
Total Units to be
to be Beneficially
to be Beneficially
Beneficially
Beneficially
Beneficially
Name of Beneficial Owner
Owned
Owned
Owned
Owned
Owned
AIM Oxford Holdings,
    LLC
(1)(2)
%
%
%
C&T Coal,
    Inc.
(3)
%
%
%
George E.
    McCown
(2)
%
%
%
Brian D.
    Barlow
(2)
%
%
%
Matthew P.
    Carbone
(2)
%
%
%
Gerald A.
    Tywoniuk
(3)
%
%
%
Charles C.
    Ungurean
(3)(4)
%
%
%
Thomas T.
    Ungurean
(3)(4)
%
%
%
Jeffrey M.
    Gutman
(3)
%
%
%
Gregory J.
    Honish
(3)
%
%
%
Michael B.
    Gardner
(3)
%
%
%
Denise M.
    Maksimoski
(3)
%
%
%
All directors and executive officers as a group (consisting of
    10 persons)
%
%
%
*
An asterisk indicates that the person or entity owns less than
    one percent.
(1)
AIM Oxford Holdings, LLC is governed by its sole manager, AIM
    Coal Management, LLC, a Delaware limited liability company. AIM
    Coal Management, LLC's members consist of George E. McCown
    and
142
Table of Contents
Matthew P. Carbone, both directors of our general partner, and
    Robert B. Hellman, Jr. Messrs. McCown, Carbone and Hellman,
    in their capacity as members of AIM Coal Management, LLC, share
    voting and investment power with respect to the common and
    subordinated units owned by AIM Oxford Holdings, LLC.
(2)
The address for this person or entity is 950 Tower Lane,
    Suite 800, Foster City, California 94404.
(3)
The address for this person or entity is 544 Chestnut Street,
    P.O. Box 427, Coshocton, Ohio 43812.
(4)
Charles C. Ungurean and Thomas T. Ungurean, as the shareholders
    of C&T Coal, Inc., share voting and investment power with
    respect to the common and subordinated units owned by C&T
    Coal, Inc.
143
Table of Contents
CERTAIN
    RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
After this offering, C&T Coal will
    own          
    common units
    and          subordinated
    units representing a combined     %
    limited partner interest in us
    (or          
    common units
    and          
    subordinated units representing a
    combined     % limited partner interest
    in us, if the underwriters exercise their option to purchase
    additional common units in full), and AIM Oxford will
    own          
    common units
    and          subordinated
    units representing a combined     %
    limited partner interest in us
    (or          
    common units
    and          subordinated
    units representing a combined     %
    limited partner interest in us, if the underwriters exercise
    their option to purchase additional common units in full).
    C&T Coal and AIM Oxford will own and control our general
    partner which owns a 2.0% general partner interest in us and all
    of our incentive distribution rights.
Distributions
    and Payments to Our General Partner and Its Affiliates
The following table summarizes the distributions and payments to
    be made by us to our general partner and its affiliates in
    connection with the formation, ongoing operation and liquidation
    of Oxford Resource Partners, LP. These distributions and
    payments were determined by and among affiliated entities and,
    consequently, are not the result of arm's-length
    negotiations.
Pre-IPO Stage
The consideration received by our general partner and its
    affiliates prior to this offering
•              common
    units;
•              subordinated
    units;
•    all of our incentive distribution
    rights;
•    2.0% general partner interest; and
•    approximately
    $      million in cash and
    accounts receivable.
Post-IPO Stage
Distributions of available cash to our general partner and its
    affiliates
We will generally make cash distributions 98% to the
    unitholders, including affiliates of our general partner, as the
    holders of an aggregate
    of          
    common units and all of the subordinated units and 2.0% to our
    general partner. In addition, if distributions exceed the
    minimum quarterly distribution and target distribution levels,
    our general partner will be entitled to increasing percentages
    of the distributions, up to 48% of the distributions above the
    highest target distribution level.
Assuming we have sufficient available cash to pay the full
    minimum quarterly distribution on all of our outstanding units
    for four quarters, our general partner and its affiliates would
    receive an annual distribution of approximately
    $      million on the 2.0% general
    partner interest and approximately
    $      million on their common
    units and subordinated units.
Payments to our general partner and its affiliates
Our general partner will not receive a management fee or other
    compensation for its management of Oxford Resource Partners, LP.
    Our general partner and its affiliates will be reimbursed for
    expenses incurred on our behalf. Our partnership agreement
    provides that our general partner will determine the amount of
    these expenses.
144
Table of Contents
Withdrawal or removal of our general partner
If our general partner withdraws or is removed, its general
    partner interest and its incentive distribution rights will
    either be sold to the new general partner for cash or converted
    into common units, in each case for an amount equal to the fair
    market value of those interests. Please read "The
    Partnership Agreement — Withdrawal or Removal of Our
    General Partner."
Liquidation Stage
Liquidation
Upon our liquidation, the partners, including our general
    partner, will be entitled to receive liquidating distributions
    according to their particular capital account balances.
Ownership
    Interests of Certain Executive Officers and Directors of Our
    General Partner
Upon the closing of this offering, C&T Coal and AIM Oxford
    will continue to own 100% of our general partner. Charles C.
    Ungurean, the President and Chief Executive Officer of our
    general partner, and Thomas T. Ungurean, the Senior Vice
    President, Equipment, Procurement and Maintenance of our general
    partner, own all of the equity interests in C&T Coal. In
    addition, certain directors of our general partner are
    principals of AIM and have ownership interests in AIM.
In addition to the 2.0% general partner interest in us, our
    general partner owns the incentive distribution rights, which
    entitle the holder to increasing percentages, up to a maximum of
    48%, of the cash we distribute in excess of
    $      per quarter, after the closing
    of our initial public offering. Upon the closing of this
    offering, C&T Coal will
    own          common
    units
    and          
    subordinated units, and AIM Oxford will
    own          
    common units
    and          
    subordinated units.
Advisory
    Services Agreement
Upon our formation in August 2007, Oxford Mining Company entered
    into an advisory services agreement with American Infrastructure
    MLP Management, L.L.C. and American Infrastructure MLP PE
    Management, L.L.C., which are affiliates of AIM, AIM Oxford and
    certain directors of our general partner. Our advisors performed
    financial and advisory services to us under this agreement,
    which will be terminated in connection with this offering. Our
    advisors received annual compensation in the amount of $250,000
    plus a fee determined by a formula, taking into account the
    increase in our gross revenue over the prior year. During 2009
    we paid our advisors in excess of $307,000 for these services,
    as well as $1.0 million in fees for services relating to an
    amendment to our existing credit facility. During 2008 we paid
    our advisors $225,000 for these services, and we did not pay our
    advisors for these services in 2007. We were also obligated to
    reimburse our advisors for expenses incurred by them in the
    performance of their services to us.
Administrative
    and Operational Services Agreement
On August 24, 2007, we entered into an administrative and
    operational services agreement with Oxford Mining Company and
    our general partner. Under the terms of the agreement, our
    general partner provides services to us and is reimbursed for
    all related costs incurred on our behalf. The services that our
    general partner provides include, among other things, general
    administrative and management services, human resources,
    information technology, finance and accounting, corporate
    development, real property, marketing, engineering, operations
    (including mining operations), geologic services, risk
    management and insurance services. During 2009, 2008 and 2007,
    we paid our general partner approximately $45.2 million,
    $14.3 million and $139,000, respectively, for services,
    primarily related to payroll, performed under the agreement. Any
    party may terminate the administrative and operational services
    agreement by providing at least 30 days' written
    notice to the other parties of its intention to terminate the
    agreement.
145
Table of Contents
Contribution
    Agreements
In August 2007 we entered into a contribution and sale agreement
    with our general partner, C&T Coal, AIM Oxford, Charles C.
    Ungurean and Thomas C. Ungurean. Pursuant to the contribution
    and sale agreement, each of C&T Coal, Charles C. Ungurean
    and Thomas T. Ungurean (and any of their related parties) agreed
    not to directly or indirectly compete with us or to disseminate
    confidential information or trade secrets regarding us and our
    subsidiaries.
In March 2008 we entered into a contribution agreement with our
    general partner and AIM Oxford. Pursuant to this contribution
    agreement, we received a contribution of $8,820,000 from AIM
    Oxford as consideration for the issuance to AIM Oxford of
    787,500 Class B common units. We also received a
    contribution of $180,000 from our general partner as
    consideration for the issuance to our general partner of
    approximately 16,071 general partner units.
In September 2008 we entered into a contribution agreement with
    our general partner, C&T Coal and AIM Oxford. Pursuant to
    this contribution agreement, we received a contribution of
    $686,000 from C&T Coal and a contribution of $1,274,000
    from AIM Oxford as consideration for the issuance to C&T
    Coal and AIM Oxford of 61,250 Class B common units and
    113,750 Class B common units, respectively. We also
    received a contribution of $40,000 from our general partner as
    consideration for the issuance to our general partner of
    approximately 3,571 general partner units.
In August 2009 we entered into a contribution agreement with
    C&T Coal and AIM Oxford. Pursuant to this contribution
    agreement, we received a contribution of $1,050,000 from
    C&T Coal and $1,950,000 from AIM Oxford as consideration
    for the issuance to C&T Coal and AIM Oxford of 35 deferred
    participation units and 65 deferred participation units,
    respectively.
In September 2009 we entered into a contribution and conversion
    agreement with our general partner, C&T Coal and AIM
    Oxford. Pursuant to the contribution and conversion agreement,
    we received a contribution of $1,469,993.91 from C&T Coal
    and $6,860,012.25 from AIM Oxford as consideration for the
    issuance to C&T Coal and AIM Oxford of 84,337 Class B
    common units and 393,575 Class B common units,
    respectively. We also received a contribution of $231,224.62
    from our general partner as consideration for the issuance to
    our general partner of approximately 13,266 general partner
    units. In connection with the execution of the contribution and
    conversion agreement, C&T Coal and AIM Oxford elected to
    convert their deferred participation units into approximately
    60,241 Class B common units and approximately 111,876
    Class B common units, respectively.
Investors'
    Rights Agreement
We entered into an investors' rights agreement on
    August 24, 2007 with our general partner, C&T Coal,
    AIM Oxford, Charles C. Ungurean and Thomas C. Ungurean. Pursuant
    to such agreement and subject to certain restrictions, C&T
    Coal was granted certain demand and "piggyback"
    registration rights. Pursuant to the terms of the agreement,
    C&T Coal has the right to require us to file a registration
    statement for the public sale of all of the common and
    subordinated units it owns at any time after the offering. In
    addition and subject to certain restrictions, if we sell any
    common units in a registered underwritten offering, C&T
    Coal will have the right to include its common units in that
    offering; provided, however, that the managing underwriter or
    underwriters of any such offering will have the right to limit
    the number of common units to be included in such sale.
We will pay all expenses relating to any demand or piggyback
    registration, except for fees and disbursements of any counsel
    retained by C&T Coal and any underwriter or brokers'
    commission or discounts.
146
Table of Contents
Tunnel
    Hill Partners, LP
The vast majority of the ownership interest in Tunnel Hill
    Partners, LP is directly or indirectly owned by T&C Holdco,
    LLC and AIM Tunnel Hill Holdings II, LLC. T&C Holdco is
    wholly-owned by Charles C. Ungurean and Thomas T. Ungurean. AIM
    Tunnel Hill Holdings II, LLC is indirectly owned by AIM.
We are a party to an environmental services agreement with
    Tunnell Hill Reclamation LLC, a wholly owned subsidiary of
    Tunnel Hill Partners, LP, pursuant to which we provide certain
    landfill operational services. Receipts for these services for
    2009 and 2008 were approximately $0.6 million and
    $1.1 million, respectively. We had no such receipts for
    2007.
In addition, pursuant to a mining agreement, Tunnell Hill
    Reclamation LLC has granted us access to certain properties for
    the purpose of conducting mining operations. As consideration
    for such access, we have authorized the construction by Tunnel
    Hill Reclamation LLC of future landfills or other waste disposal
    facilities on such properties.
Policies
    and Procedures for Review and Approval of Related Party
    Transactions
We expect that we will adopt policies for the review, approval
    and ratification of transactions with related persons as
    required by Item 404(a) of
Regulation S-K.
Upon our adoption of governance guidelines, a director of our
    general partner would be expected to bring to the attention of
    the CEO or the board any conflict or potential conflict of
    interest that may arise between the director or any affiliate of
    the director, on the one hand, and the partnership or our
    general partner, on the other hand. The resolution of any such
    conflict or potential conflict should, at the discretion of the
    board in light of the circumstances, be determined by a majority
    of the disinterested directors.
If a conflict or potential conflict of interest arises between
    us and our general partner, the resolution of any such conflict
    or potential conflict should be addressed by the board in
    accordance with the provisions of our partnership agreement. At
    the discretion of the board in light of the circumstances, the
    resolution may be determined by the board in its entirety or by
    the Conflicts Committee.
Upon our adoption of a Code of Business Conduct, any executive
    officer of our general partner will be required to avoid
    conflicts of interest unless approved by the board of directors.
In the case of any sale of our equity in which an owner or
    affiliate of an owner of our general partner participates, we
    anticipate that our practice will be to obtain general approval
    of the full board for the transaction. In connection therewith,
    the board may elect to delegate authority to set the specific
    terms to a pricing committee, consisting of the CEO and one
    independent director, with the actions by the pricing committee
    requiring unanimous approval.
147
Table of Contents
CONFLICTS
    OF INTEREST AND FIDUCIARY DUTIES
Conflicts
    of Interest
Conflicts of interest exist and may arise in the future as a
    result of the relationships between our general partner and its
    affiliates (including C&T Coal and AIM Oxford), on the one
    hand, and us and our unaffiliated limited partners, on the other
    hand. The directors and executive officers of our general
    partner have fiduciary duties to manage our general partner in a
    manner beneficial to its owners. At the same time, our general
    partner has a fiduciary duty to manage us in a manner beneficial
    to us and our unitholders.
Whenever a conflict arises between our general partner or its
    affiliates, on the one hand, and us and our limited partners, on
    the other hand, our general partner will resolve that conflict.
    Our partnership agreement contains provisions that modify and
    limit our general partner's fiduciary duties to the
    unitholders. Our partnership agreement also restricts the
    remedies available to unitholders for actions taken by our
    general partner that, without those limitations, might
    constitute breaches of its fiduciary duty.
Our general partner will not be in breach of its obligations
    under the partnership agreement or its fiduciary duties to us or
    our unitholders if the resolution of the conflict is:
•
approved by the Conflicts Committee, although our general
    partner is not obligated to seek such approval;
•
approved by the vote of a majority of the outstanding common
    units, excluding any common units owned by our general partner
    or any of its affiliates;
•
on terms no less favorable to us than those generally being
    provided to or available from unrelated third parties; or
•
fair and reasonable to us, taking into account the totality of
    the relationships between the parties involved, including other
    transactions that may be particularly favorable or advantageous
    to us.
Our general partner may, but is not required to, seek the
    approval of such resolution from the Conflicts Committee. In
    connection with a situation involving a conflict of interest,
    any determination by our general partner involving the
    resolution of the conflict of interest must be made in good
    faith, provided that, if our general partner does not seek
    approval from the Conflicts Committee and its board of directors
    determines that the resolution or course of action taken with
    respect to the conflict of interest satisfies either of the
    standards set forth in the third and fourth bullet points above,
    then it will be presumed that, in making its decision, the board
    of directors acted in good faith, and in any proceeding brought
    by or on behalf of any limited partner or the Partnership, the
    person bringing or prosecuting such proceeding will have the
    burden of overcoming such presumption. Unless the resolution of
    a conflict is specifically provided for in our partnership
    agreement, our general partner or the Conflicts Committee may
    consider any factors it determines in good faith to consider
    when resolving a conflict. When our partnership agreement
    requires someone to act in good faith, it requires that person
    to believe that he is acting in the best interests of the
    partnership.
Conflicts of interest could arise in the situations described
    below, among others.
AIM
    Oxford and AIM, affiliates of our general partner, may compete
    with us.
Our partnership agreement provides that our general partner will
    be restricted from engaging in any business activities other
    than acting as our general partner (or as general partner of
    another company of which we are a partner or member) or those
    activities incidental to its ownership of interests in us. In
    addition, C&T Coal and its affiliates are prohibited from
    competing with us in Illinois, Kentucky, Ohio, Pennsylvania,
    West Virginia and Virginia until August 2014. However, certain
    affiliates of our general partner, including AIM Oxford and AIM
    and its investment funds, are not prohibited from engaging in
    other businesses or activities, including those that might be in
    direct competition with us. Additionally, AIM, through its
    investment funds and managed accounts, makes investments and
    purchases entities in various areas of the energy sector,
    including the coal industry. These investments and acquisitions
    may include entities or assets that we would have been
    interested in acquiring.
148
Table of Contents
Pursuant to the terms of our partnership agreement, the doctrine
    of corporate opportunity, or any analogous doctrine, will not
    apply to our general partner or any of its affiliates, including
    its executive officers, directors, C&T Coal and AIM Oxford.
    Any such person or entity that becomes aware of a potential
    transaction, agreement, arrangement or other matter that may be
    an opportunity for us will not have any duty to communicate or
    offer such opportunity to us. Any such person or entity will not
    be liable to us or to any limited partner for breach of any
    fiduciary duty or other duty by reason of the fact that such
    person or entity pursues or acquires such opportunity for
    itself, directs such opportunity to another person or entity or
    does not communicate such opportunity or information to us.
    Therefore, AIM Oxford may compete with us for investment
    opportunities and may own an interest in entities that compete
    with us. Until August 2014, C&T Coal and its affiliates may
    only compete with us outside the six states referred to above.
Our general partner is allowed to take into account the
    interests of parties other than us, such as C&T Coal and
    AIM Oxford, in resolving conflicts.
Our partnership agreement contains provisions that reduce the
    fiduciary standards to which our general partner would otherwise
    be held by state fiduciary duty law. For example, our
    partnership agreement permits our general partner to make a
    number of decisions in its individual capacity, as opposed to in
    its capacity as our general partner. This entitles our general
    partner to consider only the interests and factors that it
    desires, and it has no duty or obligation to give any
    consideration to any interest of, or factors affecting, us, our
    affiliates or any limited partner. Examples include the exercise
    of our general partner's limited call right, its voting
    rights with respect to the units it owns, its registration
    rights and its determination whether or not to consent to any
    merger or consolidation of the partnership.
Our partnership agreement limits the liability and reduces
    the fiduciary duties owed by our general partner, and also
    restricts the remedies available to our unitholders for actions
    that, without those limitations, might constitute breaches of
    its fiduciary duty.
In addition to the provisions described above, our partnership
    agreement contains provisions that restrict the remedies
    available to our unitholders for actions that might otherwise
    constitute breaches of our general partner's fiduciary
    duty. For example, our partnership agreement:
•
provides that our general partner shall not have any liability
    to us or our unitholders for decisions made in its capacity as
    general partner so long as such decisions are made in good faith
    and with the belief that the decision was in our best interest;
•
provides generally that affiliated transactions and resolutions
    of conflicts of interest not approved by the Conflicts Committee
    and not involving a vote of unitholders must either be
    (1) on terms no less favorable to us than those generally
    being provided to or available from unrelated third parties or
    (2) "fair and reasonable" to us, as determined by
    our general partner in good faith, provided that, in determining
    whether a transaction or resolution is "fair and
    reasonable," our general partner may consider the totality
    of the relationships between the parties involved, including
    other transactions that may be particularly advantageous or
    beneficial to us; and
•
provides that our general partner and its executive officers and
    directors will not be liable for monetary damages to us or our
    limited partners or their assignees resulting from any act or
    omission unless there has been a final and non-appealable
    judgment entered by a court of competent jurisdiction
    determining that our general partner or its executive officers
    or directors acted in bad faith or engaged in fraud or willful
    misconduct or, in the case of a criminal matter, acted with
    knowledge that their conduct was criminal.
Except
    in limited circumstances, our general partner has the power and
    authority to conduct our business without unitholder
    approval
Under our partnership agreement, our general partner has full
    power and authority to do all things, other than those items
    that require unitholder approval or with respect to which our
    general partner has sought
149
Table of Contents
Conflicts Committee approval, on such terms as it determines to
    be necessary or appropriate to conduct our business including,
    but not limited to, the following:
•
the making of any expenditures, the lending or borrowing of
    money, the assumption or guarantee of or other contracting for,
    indebtedness and other liabilities, the issuance of evidences of
    indebtedness, including indebtedness that is convertible into
    our securities, and the incurring of any other obligations;
•
the purchase, sale or other acquisition or disposition of our
    securities, or the issuance of additional options, rights,
    warrants and appreciation rights relating to our securities;
•
the mortgage, pledge, encumbrance, hypothecation or exchange of
    any or all of our assets;
•
the negotiation, execution and performance of any contracts,
    conveyances or other instruments;
•
the distribution of our cash;
•
the selection and dismissal of employees and agents, outside
    attorneys, accountants, consultants and contractors and the
    determination of their compensation and other terms of
    employment or hiring;
•
the maintenance of insurance for our benefit and the benefit of
    our partners;
•
the formation of, or acquisition of an interest in, the
    contribution of property to, and the making of loans to, any
    limited or general partnership, joint venture, corporation,
    limited liability company or other entity;
•
the control of any matters affecting our rights and obligations,
    including the bringing and defending of actions at law or in
    equity, otherwise engaging in the conduct of litigation,
    arbitration or mediation and the incurring of legal expense, the
    settlement of claims and litigation;
•
the indemnification of any person against liabilities and
    contingencies to the extent permitted by law;
•
the making of tax, regulatory and other filings, or the
    rendering of periodic or other reports to governmental or other
    agencies having jurisdiction over our business or
    assets; and
•
the entering into of agreements with any of its affiliates to
    render services to us or to itself in the discharge of its
    duties as our general partner.
Our partnership agreement provides that our general partner must
    act in "good faith" when making decisions on our
    behalf, and our partnership agreement further provides that in
    order for a determination to be made in "good faith,"
    our general partner must believe that the determination is in
    our best interests. Please read "The Partnership
    Agreement — Voting Rights" for information
    regarding matters that require unitholder approval.
Actions
    taken by our general partner may affect the amount of cash
    available for distribution to unitholders or accelerate the
    right to convert subordinated units.
The amount of cash that is available for distribution to
    unitholders is affected by decisions of our general partner
    regarding such matters as:
•
the amount and timing of asset purchases and sales;
•
cash expenditures and the amount of estimated maintenance
    capital expenditures;
•
borrowings;
•
the issuance of additional units; and
•
the creation, reduction or increase of reserves in any quarter.
Our general partner determines the amount and timing of any
    capital expenditures and whether a capital expenditure is
    classified as an estimated maintenance capital expenditure,
    which reduces operating surplus, or an expansion capital
    expenditure, which does not reduce operating surplus. This
    determination can affect the
150
Table of Contents
amount of cash that is distributed to our unitholders and to our
    general partner and the ability of the subordinated units to
    convert into common units.
In addition, our general partner may use an amount, initially
    equal to $      million, which
    would not otherwise constitute available cash from operating
    surplus, in order to permit the payment of cash distributions on
    its units and incentive distribution rights. All of these
    actions may affect the amount of cash distributed to our
    unitholders and our general partner and may facilitate the
    conversion of subordinated units into common units. Please read
    "How We Make Cash Distributions."
In addition, borrowings by us and our affiliates do not
    constitute a breach of any duty owed by our general partner to
    our unitholders, including borrowings that have the purpose or
    effect of:
•
enabling our general partner or its affiliates to receive
    distributions on any subordinated units held by them or the
    incentive distribution rights; or
•
hastening the expiration of the subordination period.
For example, in the event we have not generated sufficient cash
    from our operations to pay the minimum quarterly distribution on
    our common units and our subordinated units, our partnership
    agreement permits us to borrow funds, which would enable us to
    make this distribution on all outstanding units. Please read
    "How We Make Cash Distributions — Subordination
    Period."
Our partnership agreement provides that we and our subsidiaries
    may borrow funds from our general partner and its affiliates.
    Our general partner and its affiliates may not borrow funds from
    us, or our operating company and its operating subsidiaries.
We
    will reimburse our general partner and its affiliates for
    expenses.
We will reimburse our general partner and its affiliates for
    costs incurred in managing and operating us. Our partnership
    agreement provides that our general partner will determine the
    expenses that are allocable to us in good faith, and it will
    charge on a fully allocated cost basis for services provided to
    us. The fully allocated basis charged by our general partner
    does not include a profit component. Please read "Certain
    Relationships and Related Party Transactions."
Contracts
    between us, on the one hand, and our general partner and its
    affiliates, on the other, will not be the result of
    arm's-length negotiations.
Our partnership agreement allows our general partner to
    determine, in good faith, any amounts to pay itself or its
    affiliates for any services rendered to us. Our general partner
    may also enter into additional contractual arrangements with any
    of its affiliates on our behalf. Neither our partnership
    agreement nor any of the other agreements, contracts, and
    arrangements between us and our general partner and its
    affiliates are or will be the result of arm's-length
    negotiations. Similarly, agreements, contracts or arrangements
    between us and our general partner and its affiliates that are
    entered into following the closing of this offering will not be
    required to be negotiated on an arm's-length basis,
    although, in some circumstances, our general partner may
    determine that the Conflicts Committee may make a determination
    on our behalf with respect to such arrangements.
Our general partner will determine, in good faith, the terms of
    any of these transactions entered into after the close of this
    offering.
Our general partner and its affiliates will have no obligation
    to permit us to use any facilities or assets of our general
    partner and its affiliates, except as may be provided in
    contracts entered into specifically for such use. There is no
    obligation of our general partner and its affiliates to enter
    into any contracts of this kind.
Our
    general partner intends to limit its liability regarding our
    obligations.
Our general partner intends to limit its liability under
    contractual arrangements so that counterparties to such
    agreements have recourse only against our assets and not against
    our general partner or its assets or any
151
Table of Contents
affiliate of our general partner or its assets. Our partnership
    agreement provides that any action taken by our general partner
    to limit its liability is not a breach of our general
    partner's fiduciary duties, even if we could have obtained
    terms that are more favorable without the limitation on
    liability.
Common
    units are subject to our general partner's limited call
    right.
Our general partner may exercise its right to call and purchase
    common units, as provided in our partnership agreement, or may
    assign this right to one of its affiliates or to us. Our general
    partner may use its own discretion, free of fiduciary duty
    restrictions, in determining whether to exercise this right. As
    a result, a common unitholder may have to sell his common units
    at an undesirable time or price. Please read "The
    Partnership Agreement — Limited Call Right."
Common
    unitholders will have no right to enforce obligations of our
    general partner and its affiliates under agreements with
    us.
Any agreements between us, on the one hand, and our general
    partner and its affiliates, on the other, will not grant to the
    unitholders, separate and apart from us, the right to enforce
    the obligations of our general partner and its affiliates in our
    favor.
Our
    general partner decides whether to retain separate counsel,
    accountants or others to perform services for us.
The attorneys, independent accountants and others who perform
    services for us have been retained by our general partner.
    Attorneys, independent accountants and others who perform
    services for us are selected by our general partner or the
    Conflicts Committee and may perform services for our general
    partner and its affiliates. We may retain separate counsel for
    ourselves or the holders of common units in the event of a
    conflict of interest between our general partner and its
    affiliates, on the one hand, and us or the holders of common
    units, on the other, depending on the nature of the conflict. We
    do not intend to do so in most cases.
Our
    general partner may elect to cause us to issue common units to
    it in connection with a resetting of the target distribution
    levels related to our general partner's incentive
    distribution rights without the approval of the Conflicts
    Committee or our unitholders. This election may result in lower
    distributions to our common unitholders in certain
    situations.
Our general partner has the right, at any time when there are no
    subordinated units outstanding and it has received incentive
    distributions at the highest level to which it is entitled (48%)
    for each of the prior four consecutive fiscal quarters, to reset
    the initial target distribution levels at higher levels based on
    our cash distribution at the time of the exercise of the reset
    election. Following a reset election by our general partner, the
    minimum quarterly distribution will be reset to an amount equal
    to the average cash distribution per common unit for the two
    fiscal quarters immediately preceding the reset election (such
    amount is referred to as the "reset minimum quarterly
    distribution"), and the target distribution levels will be
    reset to correspondingly higher levels based on percentage
    increases above the reset minimum quarterly distribution.
We anticipate that our general partner would exercise this reset
    right in order to facilitate acquisitions or internal growth
    projects that would not be sufficiently accretive to cash
    distributions per common unit without such conversion; however,
    it is possible that our general partner could exercise this
    reset election at a time when we are experiencing declines in
    our aggregate cash distributions or at a time when our general
    partner expects that we will experience declines in our
    aggregate cash distributions in the foreseeable future. In such
    situations, our general partner may be experiencing, or may
    expect to experience, declines in the cash distributions it
    receives related to its incentive distribution rights and may
    therefore desire to be issued our common units, which are
    entitled to specified priorities with respect to our
    distributions and which therefore may be more advantageous for
    the general partner to own in lieu of the right to receive
    incentive distribution payments based on target distribution
    levels that are less certain to be achieved in the then current
    business environment. As a result, a reset election may cause
    our common unitholders to experience dilution in the amount of
    cash distributions that they would have otherwise received had
    we not issued new common units to
152
Table of Contents
our general partner in connection with resetting the target
    distribution levels related to our general partner's
    incentive distribution rights. Please read "How We Make
    Cash Distributions — Distributions of Available
    Cash — General Partner Interest and Incentive
    Distribution Rights."
Fiduciary
    Duties
Our general partner is accountable to us and our unitholders as
    a fiduciary. Fiduciary duties owed to unitholders by our general
    partner are prescribed by law and the partnership agreement. The
    Delaware Act provides that Delaware limited partnerships may, in
    their partnership agreements, modify or eliminate, except for
    the contractual covenant of good faith and fair dealing, the
    fiduciary duties owed by the general partner to limited partners
    and the partnership.
Our partnership agreement contains various provisions
    restricting the fiduciary duties that might otherwise be owed by
    our general partner. We have adopted these provisions to allow
    our general partner or its affiliates to engage in transactions
    with us that would otherwise be prohibited by state-law
    fiduciary standards and to take into account the interests of
    other parties in addition to our interests when resolving
    conflicts of interest. Without such modifications, such
    transactions could result in violations of our general
    partner's state-law fiduciary duty standards. We believe
    this is appropriate and necessary because the board of directors
    of our general partner has fiduciary duties to manage our
    general partner in a manner beneficial both to its owners, as
    well as to our unitholders. Without these modifications, our
    general partner's ability to make decisions involving
    conflicts of interest would be restricted. The modifications to
    the fiduciary standards enable our general partner to take into
    consideration the interests of all parties involved, so long as
    the resolution is fair and reasonable to us. These modifications
    also enable our general partner to attract and retain
    experienced and capable directors. These modifications
    disadvantage the common unitholders because they restrict the
    rights and remedies that would otherwise be available to
    unitholders for actions that, without those limitations, might
    constitute breaches of fiduciary duty, as described below, and
    permit our general partner to take into account the interests of
    third parties in addition to our interests when resolving
    conflicts of interest. The following is a summary of the
    material restrictions of the fiduciary duties owed by our
    general partner to the limited partners:
State law fiduciary duty standards
Fiduciary duties are generally considered to include an
    obligation to act in good faith and with due care and loyalty.
    The duty of care, in the absence of a provision in a partnership
    agreement providing otherwise, would generally require a general
    partner to act for the partnership in the same manner as a
    prudent person would act on his own behalf.  The duty of
    loyalty, in the absence of a provision in a partnership
    agreement providing otherwise, would generally prohibit a
    general partner of a Delaware limited partnership from taking
    any action or engaging in any transaction where a conflict of
    interest is present.
153
Table of Contents
Partnership agreement modified standards
Our partnership agreement contains provisions that waive or
    consent to conduct by our general partner and its affiliates
    that might otherwise raise issues as to compliance with
    fiduciary duties or applicable law.  For example, our
    partnership agreement provides that when our general partner is
    acting in its capacity as our general partner, as opposed to in
    its individual capacity, it must act in "good faith"
    and will not be subject to any other standard under applicable
    law.  In addition, when our general partner is acting in its
    individual capacity, as opposed to in its capacity as our
    general partner, it may act without any fiduciary obligation to
    us or our limited partners whatsoever.  These standards reduce
    the obligations to which our general partner would otherwise be
    held.
Our partnership agreement generally provides that affiliated
    transactions and resolutions of conflicts of interest not
    involving a vote of unitholders or that are not approved by the
    Conflicts Committee must be:
•   on terms no less favorable to us than
    those generally being provided to or available from unrelated
    third parties; or
•   "fair and reasonable" to us,
    taking into account the totality of the relationships between
    the parties involved (including other transactions that may be
    particularly favorable or advantageous to us).
If our general partner does not seek approval from the Conflicts
    Committee and its board of directors determines that the
    resolution or course of action taken with respect to the
    conflict of interest satisfies either of the standards set forth
    in the bullet points above, then it will be presumed that, in
    making its decision, the board of directors, which may include
    board members affected by the conflict of interest, acted in
    good faith, and in any proceeding brought by or on behalf of any
    limited partner or the partnership, the person bringing or
    prosecuting such proceeding will have the burden of overcoming
    such presumption.  These standards reduce the obligations to
    which our general partner would otherwise be held.
In addition to the other more specific provisions limiting the
    obligations of our general partner, our partnership agreement
    further provides that our general partner and its officers and
    directors will not be liable for monetary damages to us, our
    limited partners or assignees for errors of judgment or for any
    acts or omissions unless there has been a final and
    non-appealable judgment by a court of competent jurisdiction
    determining that our general partner or its officers and
    directors acted in bad faith or engaged in fraud or willful
    misconduct or, in the case of a criminal matter, acted with
    knowledge that the conduct was unlawful.
154
Table of Contents
Rights and remedies of unitholders
The Delaware Act generally provides that a limited partner may
    institute legal action on behalf of the partnership to recover
    damages from a third party where a general partner has refused
    to institute the action or where an effort to cause a general
    partner to do so is not likely to succeed.  These actions
    include actions against a general partner for breach of its
    fiduciary duties or of the partnership agreement.  In addition,
    the statutory or case law of some jurisdictions may permit a
    limited partner to institute legal action on behalf of himself
    and all other similarly situated limited partners to recover
    damages from a general partner for violations of its fiduciary
    duties to the limited partners.
In order to become one of our limited partners, a common
    unitholder is required to agree to be bound by the provisions of
    the partnership agreement, including the provisions discussed
    above. Please read "Description of the Common
    Units — Transfer of Common Units." This is in
    accordance with the policy of the Delaware Act favoring the
    principle of freedom of contract and the enforceability of
    partnership agreements. The failure of a limited partner or
    assignee to sign a partnership agreement does not render the
    partnership agreement unenforceable against that person.
Under our partnership agreement, we must indemnify our general
    partner and its officers, directors and managers, to the fullest
    extent permitted by law, against liabilities, costs and expenses
    incurred by our general partner or these other persons. We must
    provide this indemnification unless there has been a final and
    non-appealable judgment by a court of competent jurisdiction
    determining that these persons acted in bad faith or engaged in
    fraud or willful misconduct or, in the case of a criminal
    matter, acted with knowledge that the conduct was unlawful. We
    also must provide this indemnification for criminal proceedings
    when our general partner or these other persons acted with no
    knowledge that their conduct was unlawful. Thus, our general
    partner could be indemnified for its negligent acts if it met
    the requirements set forth above. To the extent that these
    provisions purport to include indemnification for liabilities
    arising under the Securities Act of 1933, or the Securities Act,
    in the opinion of the SEC, such indemnification is contrary to
    public policy and therefore unenforceable. Please read "The
    Partnership Agreement — Indemnification."
155
Table of Contents
DESCRIPTION
    OF THE COMMON UNITS
The
    Units
The common units represent limited partner interests in us. The
    holders of common units, along with the holders of subordinated
    units, are entitled to participate in partnership distributions
    and are entitled to exercise the rights and privileges available
    to limited partners under our partnership agreement. For a
    description of the relative rights and preferences of holders of
    common units and subordinated units and our general partner in
    and to partnership distributions, please read this section and
    "How We Make Cash Distributions." For a description of
    the rights and privileges of limited partners under our
    partnership agreement, including voting rights, please read
    "The Partnership Agreement."
Transfer
    Agent and Registrar
Duties
will serve as registrar and transfer agent for the common units.
    We pay all fees charged by the transfer agent for transfers of
    common units, except the following that must be paid by our
    unitholders:
•
surety bond premiums to replace lost or stolen certificates, or
    to cover taxes and other governmental charges in connection
    therewith;
•
special charges for services requested by a holder of a common
    unit; and
•
other similar fees or charges.
There is no charge to our unitholders for disbursements of our
    cash distributions. We will indemnify the transfer agent, its
    agents and each of their respective stockholders, directors,
    officers and employees against all claims and losses that may
    arise out of acts performed or omitted for its activities in
    that capacity, except for any liability due to any gross
    negligence or intentional misconduct of such person or entity.
Resignation
    or Removal
The transfer agent may resign, by notice to us, or be removed by
    us. The resignation or removal of the transfer agent will become
    effective upon our appointment of a successor transfer agent and
    registrar and its acceptance of the appointment. If no successor
    has been appointed and has accepted the appointment within
    30 days after notice of the resignation or removal, our
    general partner may act as the transfer agent and registrar
    until a successor is appointed.
Transfer
    of Common Units
The transfer of the common units to persons that purchase
    directly from the underwriters will be accomplished through the
    proper completion, execution and delivery of a transfer
    application by the investor. Any later transfers of the common
    units will not be recorded by the transfer agent or recognized
    by us unless the transferee executes and delivers a properly
    completed transfer application. By executing and delivering a
    transfer application, a transferee of common units:
•
becomes the record holder of the transferred common units and is
    an assignee until admitted into our partnership as a limited
    partner;
•
automatically requests admission as a limited partner in our
    partnership;
•
executes and agrees to be bound by the terms and conditions of
    our partnership agreement;
•
represents that such transferee has the capacity, power and
    authority to enter into the partnership agreement;
•
grants powers of attorney to the executive officers of our
    general partner and any liquidator of us as specified in the
    partnership agreement; and
156
Table of Contents
•
gives the consents, covenants, representations and approvals
    contained in our partnership agreement, such as the approval of
    all transactions and agreements we are entering into in
    connection with this offering.
An assignee will become a limited partner of our partnership for
    the transferred common units automatically upon the recording of
    the transfer on our books and records. Our general partner will
    cause any unrecorded transfers for which a properly completed
    and duly executed transfer application has been received to be
    recorded on our books and records no less frequently than
    quarterly.
A transferee's broker, agent or nominee may complete,
    execute and deliver a transfer application. We are entitled to
    treat the nominee holder of common units as the absolute owner
    thereof. In that case, the beneficial holder's rights are
    limited solely to those that it has against the nominee holder
    as a result of any agreement between the beneficial owner and
    the nominee holder.
Common units are securities and are transferable according to
    the laws governing transfer of securities. In addition to other
    rights acquired upon transfer, the transferor gives the
    transferee the right to request admission as a limited partner
    in our partnership for the transferred common units. A purchaser
    or transferee of common units who does not execute and deliver a
    properly completed transfer application obtains only:
•
the right to transfer such common units to a purchaser or other
    transferee; and
•
the right to transfer the right to seek admission as a limited
    partner in our partnership with respect to the transferred
    common units.
Thus, a purchaser or transferee of common units who does not
    execute and deliver a properly completed transfer application:
•
will not receive cash distributions;
•
will not be allocated any of our income, gain, deduction, losses
    or credits for federal income tax or other tax purposes;
•
may not receive some federal income tax information or reports
    furnished to record holders of common units; and
•
will have no voting rights;
unless the common units are held in a nominee or "street
    name" account and the nominee or broker has executed and
    delivered a transfer application and certification as to itself
    and any beneficial holders.
The transferor of common units has a duty to provide the
    transferee with all information that may be necessary to
    transfer such common units. The transferor does not have a duty
    to ensure the execution of the transfer application by the
    transferee and has no liability or responsibility if the
    transferee neglects or chooses not to execute and deliver a
    properly completed transfer application to the transfer agent.
    Please read "The Partnership Agreement — Status
    as Limited Partner or Assignee."
Until common units have been transferred on our books, we and
    the transfer agent may treat the record holder of such common
    units as the absolute owner for all purposes, except as
    otherwise required by law or stock exchange regulations.
157
Table of Contents
THE
    PARTNERSHIP AGREEMENT
The following is a summary of the material provisions of our
    partnership agreement. The form of our partnership agreement is
    included in this prospectus as
Appendix A.
We will
    provide prospective investors with a copy of this agreement upon
    request at no charge.
We summarize the following provisions of our partnership
    agreement elsewhere in this prospectus:
•
with regard to distributions of available cash, please read
    "How We Make Cash Distributions";
•
with regard to the fiduciary duties of our general partner,
    please read "Conflicts of Interest and Fiduciary
    Duties";
•
with regard to the transfer of common units, please read
    "Description of the Common Units — Transfer of
    Common Units"; and
•
with regard to allocations of taxable income and taxable loss,
    please read "Material Federal Income Tax Consequences."
Organization
    and Duration
We were organized in August 2007 and have a perpetual existence.
Purpose
Our purpose under the partnership agreement is limited to any
    business activities that are approved by our general partner and
    in any event that lawfully may be conducted by a limited
    partnership organized under Delaware law; provided that our
    general partner may not cause us to engage, directly or
    indirectly, in any business activity that our general partner
    determines would cause us to be treated as an association
    taxable as a corporation or otherwise taxable as an entity for
    federal income tax purposes.
Although our general partner has the power to cause us, our
    operating company and its subsidiaries to engage in activities
    other than coal mining and marketing, our general partner may
    decline to do so free of any fiduciary duty or obligation
    whatsoever to us or the limited partners, including any duty to
    act in good faith or in the best interests of us or the limited
    partners. However, any decision by our general partner to cause
    us or our subsidiaries to invest in activities will be subject
    to its fiduciary duties as modified by our partnership
    agreement. In general, our general partner is authorized to
    perform all acts it determines to be necessary or appropriate to
    carry out our purposes and to conduct our business.
Power of
    Attorney
Each limited partner and each person who acquires a unit from a
    unitholder and executes and delivers a transfer application and
    certification, grants to our general partner and, if appointed,
    a liquidator, a power of attorney to, among other things,
    execute and file documents required for our qualification,
    continuance, or dissolution. The power of attorney also grants
    our general partner the authority to amend, and to make consents
    and waivers under, our partnership agreement.
Capital
    Contributions
Unitholders are not obligated to make additional capital
    contributions, except as described below under
    "— Limited Liability."
158
Table of Contents
Voting
    Rights
The following matters require the limited partner vote specified
    below. Various matters require the approval of a "unit
    majority," which means:
•
during the subordination period, the approval of a majority of
    the outstanding common units, excluding those common units held
    by our general partner and its affiliates, and a majority of the
    outstanding subordinated units, each voting as a separate
    class; and
•
after the subordination period, the approval of a majority of
    the outstanding common units.
By virtue of the exclusion of those common units held by our
    general partner and its affiliates from the required vote, and
    by their ownership of all of the subordinated units, during the
    subordination period our general partner and its affiliates do
    not have the ability to ensure passage of, but do have the
    ability to ensure defeat of, any amendment that requires a unit
    majority.
In voting their common and subordinated units, our general
    partner and its affiliates will have no fiduciary duty or
    obligation whatsoever to us or our limited partners, including
    any duty to act in good faith or in the best interests of us and
    our limited partners.
Issuance of additional units
No approval rights.
Amendment of our partnership agreement
Certain amendments may be made by our general partner without
    the approval of our limited partners.  Other amendments
    generally require the approval of a unit majority.  Please read
    "— Amendment of Our Partnership Agreement."
Merger of our partnership or the sale of all or substantially
    all of our assets
Unit majority in certain circumstances.  Please read
    "— Merger, Sale or Other Disposition of
    Assets."
Continuation of our partnership upon dissolution
Unit majority.  Please read "— Termination and
    Dissolution."
Withdrawal of our general partner
No approval rights.  Please read "— Withdrawal or
    Removal of Our General Partner."
Removal of our general partner
Not less than 80% of the outstanding common units and
    subordinated units, voting as a single class, including common
    units and subordinated units held by our general partner and its
    affiliates.  Please read "— Withdrawal or Removal of
    Our General Partner."
Transfer of our general partner interest
After 2020, our general partner may transfer all or any of its
    general partner interest in us without approval.  Prior to such
    date, the approval of a majority of the outstanding common
    units, excluding common units held by our general partner and
    its affiliates, is required for a transfer of the general
    partner interest.  Please read "— Transfer of General
    Partner Interest."
Transfer of incentive distribution rights
No approval rights.  Please read "— Transfer of
    Incentive Distribution Rights."
Transfer of ownership interests in our general partner
No approval required at any time.  Please read "—
    Transfer of Ownership Interests in Our General Partner."
Limited
    Liability
Assuming that a limited partner does not participate in the
    control of our business within the meaning of the Delaware Act
    and that it otherwise acts in conformity with the provisions of
    our partnership agreement, its
159
Table of Contents
liability under the Delaware Act will be limited, subject to
    possible exceptions, to the amount of capital they are obligated
    to contribute to us for their common units plus their share of
    any undistributed profits and assets. If it were determined,
    however, that the right of, or exercise of the right by, the
    limited partners as a group:
•
to remove or replace our general partner;
•
to approve some amendments to our partnership agreement; or
•
to take other action under our partnership agreement;
constituted "participation in the control" of our
    business for the purposes of the Delaware Act, then the limited
    partners could be held personally liable for our obligations
    under the laws of Delaware, to the same extent as our general
    partner. This liability would extend to persons who transact
    business with us who reasonably believe that a limited partner
    is a general partner. Neither our partnership agreement nor the
    Delaware Act specifically provides for legal recourse against
    our general partner if a limited partner were to lose limited
    liability through any fault of our general partner. While this
    does not mean that a limited partner could not seek legal
    recourse, we know of no precedent for such a claim in Delaware
    case law.
Under the Delaware Act, a limited partnership may not make a
    distribution to a partner if, after the distribution, all
    liabilities of the limited partnership, other than liabilities
    to partners on account of their partnership interests and
    liabilities for which the recourse of creditors is limited to
    specific property of the partnership, would exceed the fair
    value of the assets of the limited partnership. For the purpose
    of determining the fair value of the assets of a limited
    partnership, the Delaware Act provides that the fair value of
    property subject to liability for which recourse of creditors is
    limited shall be included in the assets of the limited
    partnership only to the extent that the fair value of that
    property exceeds the nonrecourse liability. The Delaware Act
    provides that a limited partner who receives a distribution and
    knew at the time of the distribution that the distribution was
    in violation of the Delaware Act shall be liable to the limited
    partnership for the amount of the distribution for three years.
    Under the Delaware Act, an assignee who becomes a limited
    partner of a limited partnership is liable for the obligations
    of its assignor to make contributions to the partnership, except
    the assignee is not obligated for liabilities unknown to him at
    the time he became a limited partner and that could not be
    ascertained from the partnership agreement.
Our subsidiaries conduct business in Kentucky and Ohio. Our
    subsidiaries may conduct business in other states in the future.
    Maintenance of our limited liability as a member of our
    operating company may require compliance with legal requirements
    in the jurisdictions in which our operating company conducts
    business, including qualifying our subsidiaries to do business
    there.
Limitations on the liability of limited partners for the
    obligations of a limited partnership have not been clearly
    established in many jurisdictions. If, by virtue of our
    membership interest in our operating company or otherwise, it
    were determined that we were conducting business in any state
    without compliance with the applicable limited partnership or
    limited liability company statute, or that the right or exercise
    of the right by the limited partners as a group to remove or
    replace our general partner, to approve some amendments to our
    partnership agreement, or to take other action under our
    partnership agreement constituted "participation in the
    control" of our business for purposes of the statutes of
    any relevant jurisdiction, then the limited partners could be
    held personally liable for our obligations under the law of that
    jurisdiction to the same extent as the general partner under the
    circumstances. We will operate in a manner that our general
    partner considers reasonable and necessary or appropriate to
    preserve the limited liability of the limited partners.
Issuance
    of Additional Securities
Our partnership agreement authorizes us to issue an unlimited
    number of additional partnership securities for the
    consideration and on the terms and conditions determined by our
    general partner without the approval of our limited partners.
It is possible that we will fund acquisitions through the
    issuance of additional common units, subordinated units or other
    partnership securities. Holders of any additional common units
    we issue will be entitled to share equally with the
    then-existing holders of common units in our distributions of
    available cash.
160
Table of Contents
In addition, the issuance of additional common units or other
    partnership securities may dilute the value of the interests of
    the then-existing holders of common units in our net assets.
In accordance with Delaware law and the provisions of our
    partnership agreement, we may also issue additional partnership
    securities that, as determined by our general partner, may have
    rights to distributions or special voting rights to which the
    common units are not entitled. In addition, our partnership
    agreement does not prohibit the issuance by our subsidiaries of
    equity securities, which may effectively rank senior to the
    common units.
Our general partner's 2.0% general partner interest is
    subject to dilution. If we issue additional partnership
    securities in the future, our general partner must either make
    additional capital contributions to us to maintain its 2.0%
    general partner interest or its interests will be effectively
    diluted. In addition, our general partner will have the right,
    which it may from time to time assign in whole or in part to any
    of its affiliates, to purchase common units, subordinated units
    or other partnership securities to the extent necessary to
    maintain its and its affiliates' limited partner percentage
    interest in us, whenever, and on the same terms that, we issue
    those securities to persons other than our general partner and
    its affiliates. The holders of common units will not have
    preemptive rights to acquire additional common units or other
    partnership securities.
Amendment
    of Our Partnership Agreement
General
Amendments to our partnership agreement may be proposed only by
    our general partner. However, our general partner will have no
    duty or obligation to propose any amendment and may decline to
    do so free of any fiduciary duty or obligation whatsoever to us
    or our limited partners, including any duty to act in good faith
    or in the best interests of us or our limited partners. In order
    to adopt a proposed amendment, other than the amendments
    discussed below, our general partner must seek written approval
    of the holders of the number of units required to approve the
    amendment or call a meeting of the limited partners to consider
    and vote upon the proposed amendment. Except as described below,
    an amendment must be approved by a unit majority.
Prohibited
    Amendments
No amendment may:
(1) enlarge the obligations of any limited partner without
    its consent, unless approved by at least a majority of the type
    or class of limited partner interests so affected; or
(2) enlarge the obligations of, restrict in any way any
    action by or rights of, or reduce in any way the amounts
    distributable, reimbursable or otherwise payable by us to our
    general partner or any of its affiliates without the consent of
    our general partner, which may be given or withheld at its
    option.
The provision of our partnership agreement preventing the
    amendments having the effects described in clauses (1) and
    (2) above can be amended upon the approval of the holders
    of at least 90% of the outstanding units voting together as a
    single class (including units owned by our general partner and
    its affiliates). Upon the consummation of this offering,
    affiliates of our general partner will
    own     % of the outstanding common and
    subordinated units as a single class
    (or     % of the outstanding common and
    subordinated units as a single class, if the underwriters
    exercise their option to purchase additional common units in
    full).
No
    Unitholder Approval
Our general partner may generally make amendments to the
    partnership agreement without the approval of any limited
    partner or assignee to reflect:
(1) a change in our name, the location of our principal
    place of business, our registered agent or our registered office;
(2) the admission, substitution, withdrawal or removal of
    partners in accordance with our partnership agreement;
161
Table of Contents
(3) a change that our general partner determines to be
    necessary or appropriate for us to qualify or to continue our
    qualification as a limited partnership or a partnership in which
    the limited partners have limited liability under the laws of
    any state or to ensure that neither we, our operating company,
    nor its subsidiaries will be treated as an association taxable
    as a corporation or otherwise taxed as an entity for federal
    income tax purposes;
(4) a change in our fiscal year or taxable year and related
    changes;
(5) an amendment that is necessary, in the opinion of our
    counsel, to prevent us or our general partner or its directors,
    officers, agents, or trustees from in any manner being subjected
    to the provisions of the Investment Company Act of 1940, the
    Investment Advisors Act of 1940, or "plan asset"
    regulations adopted under the Employee Retirement Income
    Security Act of 1974 ("ERISA"), whether or not
    substantially similar to plan asset regulations currently
    applied or proposed;
(6) an amendment that our general partner determines to be
    necessary or appropriate for the authorization of additional
    partnership securities or rights to acquire partnership
    securities;
(7) any amendment expressly permitted in our partnership
    agreement to be made by our general partner acting alone;
(8) an amendment effected, necessitated, or contemplated by
    a merger agreement that has been approved under the terms of our
    partnership agreement;
(9) any amendment that our general partner determines to be
    necessary or appropriate for the formation by us of, or our
    investment in, any corporation, partnership, joint venture,
    limited liability company or other entity, as otherwise
    permitted by our partnership agreement;
(10) mergers with, conveyances to or conversions to another
    limited liability entity that is newly formed and has no assets,
    liabilities or operations at the time of the merger, conveyance
    or conversion other than those it receives by way of the merger,
    conveyance or conversion; or
(11) any other amendments substantially similar to any of
    the matters described above.
In addition, our general partner may make amendments to the
    partnership agreement without the approval of any limited
    partner or assignee if our general partner determines that those
    amendments:
(1) do not adversely affect the limited partners (or any
    particular class of limited partners) in any material respect;
(2) are necessary or appropriate to satisfy any
    requirements, conditions, or guidelines contained in any
    opinion, directive, order, ruling, or regulation of any federal
    or state agency or judicial authority or contained in any
    federal or state statute;
(3) are necessary or appropriate to facilitate the trading
    of limited partner interests or to comply with any rule,
    regulation, guideline, or requirement of any securities exchange
    on which the limited partner interests are or will be listed for
    trading;
(4) are necessary or appropriate for any action taken by
    our general partner relating to splits or combinations of units
    under the provisions of our partnership agreement; or
(5) are required to effect the intent expressed in the
    contribution agreement, this prospectus or the intent of the
    provisions of our partnership agreement or are otherwise
    contemplated by our partnership agreement.
Opinion
    of Counsel and Limited Partner Approval
Our general partner will not be required to obtain an opinion of
    counsel that an amendment will not result in a loss of limited
    liability to the limited partners or result in our being treated
    as an entity for federal income tax purposes in connection with
    any of the amendments described above under "— No
    Unitholder Approval." No other amendments to our
    partnership agreement will become effective without the approval
    of
162
Table of Contents
holders of at least 90% of the outstanding units voting as a
    single class unless we first obtain an opinion of counsel to the
    effect that the amendment will not affect the limited liability
    under applicable law of any of our limited partners.
In addition to the above restrictions, any amendment that would
    have a material adverse effect on the rights or preferences of
    any type or class of outstanding units in relation to other
    classes of units will require the approval of at least a
    majority of the type or class of units so affected. Any
    amendment that reduces the voting percentage required to take
    any action must be approved by the affirmative vote of limited
    partners whose aggregate outstanding units constitute not less
    than the voting requirement sought to be reduced.
Merger,
    Sale or Other Disposition of Assets
A merger or consolidation of us requires the prior consent of
    our general partner. However, our general partner will have no
    duty or obligation to consent to any merger or consolidation and
    may decline to do so free of any fiduciary duty or obligation
    whatsoever to us or the limited partners, including any duty to
    act in good faith or in the best interest of us or our limited
    partners.
In addition, our partnership agreement generally prohibits our
    general partner, without the prior approval of the holders of a
    unit majority, from causing us to, among other things, sell,
    exchange, or otherwise dispose of all or substantially all of
    our and our subsidiaries' assets in a single transaction or
    a series of related transactions, including by way of merger,
    consolidation, other combination or sale of ownership interests
    of our subsidiaries. Our general partner may, however, mortgage,
    pledge, hypothecate, or grant a security interest in all or
    substantially all of our and our subsidiaries' assets
    without that approval. Our general partner may also sell all or
    substantially all of our and our subsidiaries' assets under
    a foreclosure or other realization upon those encumbrances
    without that approval.
If the conditions specified in our partnership agreement are
    satisfied, our general partner may convert us or any of our
    subsidiaries into a new limited liability entity or merge us or
    any of our subsidiaries into, or convey some or all of our
    assets to, a newly formed entity if the sole purpose of that
    merger or conveyance is to effect a mere change in our legal
    form into another limited liability entity. The limited partners
    are not entitled to dissenters' rights of appraisal under
    our partnership agreement or applicable Delaware law in the
    event of a conversion, merger or consolidation, a sale of
    substantially all of our assets, or any other transaction or
    event.
Our general partner may consummate any merger or consolidation
    without the approval of our limited partners if we are the
    surviving entity in the transaction, the transaction would not
    result in an amendment to our partnership agreement that the
    general partner could not adopt unilaterally, each of our units
    will be an identical unit of our partnership following the
    transaction, the units to be issued do not exceed 20% of our
    outstanding units immediately prior to the transaction and our
    general partner has received an opinion of counsel regarding
    certain limited liability and tax matters.
Termination
    and Dissolution
We will continue as a limited partnership until terminated under
    our partnership agreement. We will dissolve upon:
(1) the withdrawal or removal of our general partner or any
    other event that results in its ceasing to be our general
    partner other than by reason of a transfer of its general
    partner interest in accordance with our partnership agreement or
    withdrawal or removal following approval and admission of a
    successor general partner;
(2) the election of our general partner to dissolve us, if
    approved by the holders of a unit majority;
(3) the entry of a decree of judicial dissolution of our
    partnership; or
(4) at any time there are no limited partners, unless the
    partnership is continued without dissolution in accordance with
    the Delaware Act.
163
Table of Contents
Upon a dissolution under clause (1), the holders of a unit
    majority may also elect, within specific time limitations, to
    continue our business on the same terms and conditions described
    in our partnership agreement and appoint as a successor general
    partner an entity approved by the holders of a unit majority,
    subject to our receipt of an opinion of counsel to the effect
    that:
•
the action would not result in the loss of limited liability of
    any limited partner; and
•
neither our partnership nor any of our subsidiaries would be
    treated as an association taxable as a corporation or otherwise
    be taxable as an entity for federal income tax purposes upon the
    exercise of that right to continue (to the extent not already so
    treated or taxed).
Liquidation
    and Distribution of Proceeds
Upon our dissolution, unless we are continued as a limited
    partnership, the liquidator authorized to wind up our affairs
    will, acting with all of the powers of our general partner that
    are necessary or appropriate, liquidate our assets and apply the
    proceeds of the liquidation as described in "How We Make
    Cash Distributions — Distributions of Cash Upon
    Liquidation." The liquidator may defer liquidation or
    distribution of our assets for a reasonable period of time or
    distribute assets to partners in kind if it determines that a
    sale would be impractical or would cause undue loss to our
    partners.
Withdrawal
    or Removal of Our General Partner
Our general partner may withdraw as general partner without
    obtaining approval of any unitholder by giving
    90 days' written notice, and that withdrawal will not
    constitute a violation of our partnership agreement. In
    addition, our partnership agreement permits our general partner
    in some instances to sell or otherwise transfer all of its
    general partner interest and incentive distribution rights in us
    without the approval of the limited partners. Please read
    "— Transfer of General Partner Interest" and
    "— Transfer of Incentive Distribution
    Rights."
Upon a voluntary withdrawal of our general partner after giving
    written notice to all partners, a unit majority may select a
    successor to that withdrawing general partner. If a successor is
    not elected, or is elected but an opinion of counsel regarding
    limited liability and tax matters cannot be obtained, we will be
    dissolved, wound up, and liquidated, unless within a specified
    period of time after that withdrawal, the holders of a unit
    majority agree in writing to continue our business and to
    appoint a successor general partner. Please read
    "— Termination and Dissolution."
Our general partner may not be removed unless that removal is
    approved by the vote of the holders of not less than 80% of all
    outstanding units, voting together as a single class, including
    units held by our general partner and its affiliates, and we
    receive an opinion of counsel regarding limited liability and
    tax matters. Any removal of our general partner is also subject
    to the approval of a successor general partner by the vote of
    the holders of a majority of the outstanding common units and
    subordinated units, voting as separate classes. The ownership of
    more than 20% of the outstanding units by our general partner
    and its affiliates would give them the practical ability to
    prevent our general partner's removal. At the closing of
    this offering, affiliates of our general partner will
    own     % of the outstanding units
    (or     % of the outstanding units, if
    the underwriters exercise their option to purchase additional
    common units in full).
Our partnership agreement also provides that if our general
    partner is removed as our general partner without cause and no
    units held by our general partner and its affiliates are voted
    in favor of that removal:
•
the subordination period will end and all outstanding
    subordinated units will immediately convert into common units on
    a
one-for-one
basis;
•
any existing arrearages in payment of the minimum quarterly
    distribution on the common units will be extinguished; and
•
our general partner will have the right to convert its general
    partner interest and its incentive distribution rights into
    common units or to receive cash in exchange for those interests
    based on the fair market value of the interests at the time.
164
Table of Contents
In the event of removal of our general partner under
    circumstances where cause exists or withdrawal of our general
    partner where that withdrawal violates our partnership
    agreement, a successor general partner will have the option to
    purchase the general partner interest and incentive distribution
    rights of the departing general partner for a cash payment equal
    to the fair market value of those interests. Under all other
    circumstances where our general partner withdraws or is removed
    by the limited partners, the departing general partner will have
    the option to require the successor general partner to purchase
    the general partner interest of the departing general partner
    and its incentive distribution rights for their fair market
    value. In each case, this fair market value will be determined
    by agreement between the departing general partner and the
    successor general partner. If no agreement is reached, an
    independent investment banking firm or other independent expert
    selected by the departing general partner and the successor
    general partner will determine the fair market value. Or, if the
    departing general partner and the successor general partner
    cannot agree upon an expert, then an expert chosen by agreement
    of the experts selected by each of them will determine the fair
    market value.
If the option described above is not exercised by either the
    departing general partner or the successor general partner, the
    departing general partner's general partner interest and
    its incentive distribution rights will automatically convert
    into common units equal to the fair market value of those
    interests as determined by an investment banking firm or other
    independent expert selected in the manner described in the
    preceding paragraph.
In addition, we will be required to reimburse the departing
    general partner for all amounts due to it, including, without
    limitation, all employee-related liabilities, including
    severance liabilities, incurred for the termination of any
    employees employed by the departing general partner or its
    affiliates for our benefit.
Transfer
    of General Partner Interest
Prior
    to          2020,
    our general partner may not transfer all or any part of its
    general partner interests in us to another person.
    After          2020,
    our general partner may transfer all or any part of its general
    partner interest in us to another person without the approval of
    the unitholders. As a condition of this transfer, the transferee
    must, among other things, assume the rights and duties of our
    general partner, agree to be bound by the provisions of our
    partnership agreement, and furnish an opinion of counsel
    regarding limited liability and tax matters.
Our general partner and its affiliates may at any time transfer
    units to one or more persons, without unitholder approval,
    except that they may not transfer subordinated units to us.
Transfer
    of Ownership Interests in Our General Partner
At any time, the owners of our general partner may sell or
    transfer all or part of their ownership interests in our general
    partner to an affiliate or a third party without the approval of
    our unitholders.
Transfer
    of Incentive Distribution Rights
Our general partner or any other holder of incentive
    distribution rights may transfer any or all of its incentive
    distribution rights without unitholder approval.
Change of
    Management Provisions
Our partnership agreement contains specific provisions that are
    intended to discourage a person or group from attempting to
    remove our general partner or otherwise change our management.
    If any person or group other than our general partner and its
    affiliates acquires beneficial ownership of 20% or more of any
    class of units, that person or group loses voting rights on all
    of its units. This loss of voting rights does not apply to any
    person or group that acquires the units from our general partner
    or its affiliates and any transferees of that person or group
    approved by our general partner or to any person or group who
    acquires the units with the prior approval of the board of
    directors of our general partner.
165
Table of Contents
If our general partner is removed without cause and no units
    held by our general partner and its affiliates are voted in
    favor of that removal, our partnership agreement provides that,
    among other things, (i) all outstanding subordinated units
    will immediately convert into common units, (ii) any
    existing arrearages in payment of the minimum quarterly
    distribution on the common units will be extinguished and
    (iii) our general partner will have the right to convert
    its general partner interest and incentive distribution rights
    into common units or receive cash in exchange for those
    interests. Please read "— Withdrawal or Removal
    of Our General Partner."
Limited
    Call Right
If at any time our general partner and its affiliates own more
    than 80% of the outstanding limited partner interests of any
    class, our general partner will have the right, which it may
    assign in whole or in part to any of its affiliates or to us, to
    acquire all, but not less than all, of the remaining limited
    partner interests of the class held by unaffiliated persons as
    of a record date to be selected by our general partner, on at
    least 10 but not more than 60 days notice. The purchase
    price in the event of this purchase is the greater of:
•
the highest cash price paid by either of our general partner or
    any of its affiliates for any partnership securities of the
    class purchased within the 90 days preceding the date on
    which our general partner first mails notice of its election to
    purchase those partnership securities; and
•
the current market price as of the date three days before the
    date the notice is mailed.
As a result of our general partner's right to purchase
    outstanding limited partner interests, a holder of limited
    partner interests may have his limited partner interests
    purchased at an undesirable time or price. The tax consequences
    to a unitholder of the exercise of this call right are the same
    as a sale by that unitholder of his common units in the market.
    Please read "Material Federal Income Tax
    Consequences — Disposition of Common Units."
Meetings;
    Voting
Except as described below regarding a person or group owning 20%
    or more of any class of units then outstanding, unitholders or
    assignees who are record holders of units on the record date
    will be entitled to notice of, and to vote at, meetings of our
    limited partners and to act upon matters for which approvals may
    be solicited. Common units that are owned by an assignee who is
    a record holder, but who has not yet been admitted as a limited
    partner, will be voted by our general partner at the written
    direction of the record holder. Absent direction of this kind,
    the common units will not be voted, except that, in the case of
    common units held by our general partner on behalf of
    non-citizen assignees, our general partner will distribute the
    votes on those common units in the same ratios as the votes of
    limited partners on other units are cast.
Our general partner does not anticipate that any meeting of
    unitholders will be called in the foreseeable future. Any action
    that is required or permitted to be taken by the unitholders may
    be taken either at a meeting of the unitholders or without a
    meeting if consents in writing describing the action so taken
    are signed by holders of the number of units necessary to
    authorize or take that action at a meeting. Meetings of the
    unitholders may be called by our general partner or by
    unitholders owning at least 20% of the outstanding units of the
    class for which a meeting is proposed. Unitholders may vote
    either in person or by proxy at meetings. The holders of a
    majority of the outstanding units of the class or classes for
    which a meeting has been called, represented in person or by
    proxy, will constitute a quorum unless any action by the
    unitholders requires approval by holders of a greater percentage
    of the units, in which case the quorum will be the greater
    percentage. The units representing the general partner interest
    are units for distribution and allocation purposes, but do not
    entitle our general partner to any vote other than its rights as
    general partner under our partnership agreement, will not be
    entitled to vote on any action required or permitted to be taken
    by the unitholders and will not count toward or be considered
    outstanding when calculating required votes, determining the
    presence of a quorum, or for similar purposes.
Each record holder of a unit has a vote according to its
    percentage interest in us, although additional limited partner
    interests having special voting rights could be issued. Please
    read "— Issuance of Additional
166
Table of Contents
Securities." However, if at any time any person or group,
    other than our general partner and its affiliates, or a direct
    or subsequently approved transferee of our general partner or
    its affiliates, acquires, in the aggregate, beneficial ownership
    of 20% or more of any class of units then outstanding, that
    person or group will lose voting rights on all of its units and
    the units may not be voted on any matter and will not be
    considered to be outstanding when sending notices of a meeting
    of unitholders, calculating required votes, determining the
    presence of a quorum, or for other similar purposes. Common
    units held in nominee or street name account will be voted by
    the broker or other nominee in accordance with the instruction
    of the beneficial owner unless the arrangement between the
    beneficial owner and its nominee provides otherwise. Except as
    our partnership agreement otherwise provides, subordinated units
    will vote together with common units as a single class.
Any notice, demand, request, report, or proxy material required
    or permitted to be given or made to record holders of common
    units under our partnership agreement will be delivered to the
    record holder by us or by the transfer agent.
Status as
    Limited Partner or Assignee
Except as described above under "— Limited
    Liability," the common units will be fully paid, and
    unitholders will not be required to make additional
    contributions.
An assignee of a common unit, after executing and delivering a
    transfer application, but pending its admission as a limited
    partner, is entitled to an interest equivalent to that of a
    limited partner for the right to share in allocations and
    distributions from us, including liquidating distributions. Our
    general partner will vote and exercise other powers attributable
    to common units owned by an assignee that has not become a
    limited partner at the written direction of the assignee. Please
    read "— Meetings; Voting." Transferees who
    do not execute and deliver a transfer application and
    certification will not be treated as assignees or as record
    holders of common units, and will not receive cash
    distributions, federal income tax allocations, or reports
    furnished to holders of common units unless the common units are
    held in a nominee or "street name" account and the
    nominee or broker has executed and delivered a transfer
    application and certification as to itself and any beneficial
    holders. Please read "Description of the Common
    Units — Transfer of Common Units."
Non-Citizen
    Assignees; Redemption
If we are or become subject to federal, state, or local laws or
    regulations that, in the determination of our general partner,
    create a substantial risk of cancellation or forfeiture of any
    property in which we have an interest in because of the
    nationality, citizenship or other related status of any limited
    partner or assignee, our general partner may require each
    limited partner or assignee to furnish information about his
    nationality, citizenship or related status. If a limited partner
    or assignee fails to furnish information about his nationality,
    citizenship or other related status within 30 days after a
    request for the information or our general partner determines
    after receipt of the information that the limited partner or
    assignee is not an eligible citizen, the limited partner or
    assignee may be treated as a non-citizen assignee. In addition
    to other limitations on the rights of an assignee that is not a
    limited partner, a non-citizen assignee does not have the right
    to direct the voting of his units and may not receive
    distributions in kind upon our liquidation.
Furthermore, we have the right to redeem all of the common and
    subordinated units of any holder that our general partner
    concludes is not an eligible citizen or fails to furnish the
    information requested by our general partner. The redemption
    price in the event of such redemption for each unit held by such
    unitholder will be the lesser of (i) their current market
    price and (ii) the price paid for each such unit by the
    unitholder. The redemption price will be paid in cash or by
    delivery of a promissory note, as determined by our general
    partner. Any such promissory note will bear interest at the rate
    of 5% annually and be payable in three equal annual installments
    of principal and accrued interest, commencing one year after the
    redemption date.
167
Table of Contents
Indemnification
Under our partnership agreement, we will indemnify the following
    persons in most circumstances, to the fullest extent permitted
    by law, from and against all losses, claims, damages, or similar
    events:
(1) our general partner;
(2) any departing general partner;
(3) any person who is or was an affiliate of our general
    partner or any departing general partner;
(4) any person who is or was an officer, director, member,
    partner, fiduciary or trustee of any entity described in (1),
    (2) or (3) above or any of their subsidiaries;
(5) any person who is or was serving as a director,
    officer, member, partner, fiduciary or trustee of another person
    at the request of our general partner or any departing general
    partner or any of their affiliates; and
(6) any person designated by our general partner.
Any indemnification under these provisions will only be out of
    our assets. Unless it otherwise agrees, our general partner will
    not be personally liable for, or have any obligation to
    contribute or loan funds or assets to us to enable us to
    effectuate, indemnification. We may purchase insurance against
    liabilities asserted against and expenses incurred by persons
    for our activities, regardless of whether we would have the
    power to indemnify the person against liabilities under our
    partnership agreement.
Reimbursement
    of Expenses
Our partnership agreement requires us to reimburse our general
    partner for all direct and indirect expenses it incurs or
    payments it makes on our behalf and all other expenses allocable
    to us or otherwise incurred by our general partner in connection
    with operating our business. These expenses include salary,
    bonus, incentive compensation and other amounts paid to persons
    who perform services for us or on our behalf and expenses
    allocated to our general partner by its affiliates. Our general
    partner is entitled to determine in good faith the expenses that
    are allocable to us.
Books and
    Reports
Our general partner is required to keep appropriate books of our
    business at our principal offices. The books will be maintained
    for both tax and financial reporting purposes on an accrual
    basis. For fiscal and tax reporting purposes, we use the
    calendar year.
We will furnish or make available (by posting on our website or
    other reasonable means) to record holders of common units,
    within 120 days after the close of each fiscal year, an
    annual report containing audited financial statements and a
    report on those financial statements by our independent public
    accountants. Except for our fourth quarter, we will also furnish
    or make available summary financial information within
    90 days after the close of each quarter.
We will furnish each record holder of a unit with information
    reasonably required for tax reporting purposes within
    90 days after the close of each calendar year. This
    information is expected to be furnished in summary form so that
    some complex calculations normally required of partners can be
    avoided. Our ability to furnish this summary information to
    unitholders will depend on the cooperation of unitholders in
    supplying us with specific information. Every unitholder will
    receive information to assist him in determining its federal and
    state tax liability and filing its federal and state income tax
    returns, regardless of whether he supplies us with information.
168
Table of Contents
Right to
    Inspect Our Books and Records
Our partnership agreement provides that a limited partner can,
    for a purpose reasonably related to its interest as a limited
    partner, upon reasonable demand and at its own expense, have
    furnished to him:
•
a current list of the name and last known address of each
    partner;
•
a copy of our tax returns;
•
information as to the amount of cash, and a description and
    statement of the agreed value of any other property or services,
    contributed or to be contributed by each partner and the date on
    which each became a partner;
•
copies of our partnership agreement, the certificate of limited
    partnership of the partnership, related amendments, and powers
    of attorney under which they have been executed;
•
information regarding the status of our business and financial
    condition; and
•
any other information regarding our affairs as is just and
    reasonable.
Our general partner may, and intends to, keep confidential from
    the limited partners trade secrets or other information the
    disclosure of which our general partner believes in good faith
    is not in our best interests or that we are required by law or
    by agreements with third parties to keep confidential.
Registration
    Rights
Under our partnership agreement, we have agreed to register for
    resale under the Securities Act and applicable state securities
    laws any common units, subordinated units, or other partnership
    securities proposed to be sold by our general partner or any of
    its affiliates or their assignees if an exemption from the
    registration requirements is not otherwise available. These
    registration rights continue for two years following any
    withdrawal or removal of Oxford Resources GP as our general
    partner. We are obligated to pay all expenses incidental to the
    registration, excluding underwriting discounts and commissions.
    Please read "Units Eligible for Future Sale."
169
Table of Contents
UNITS
    ELIGIBLE FOR FUTURE SALE
After the sale of the common units offered by this prospectus,
    C&T Coal and AIM Oxford will hold an aggregate
    of          
    and          
    common units
    and          
    and          subordinated
    units, respectively
    (or          
    and          
    common units
    and          
    and          subordinated
    units if the underwriters exercise their option to purchase
    additional units in full). All of the subordinated units will
    convert into common units at the end of the subordination
    period. The sale of these common and subordinated units could
    have an adverse impact on the price of the common units or on
    any trading market that may develop.
The common units sold in this offering will generally be freely
    transferable without restriction or further registration under
    the Securities Act, except that any common units held by an
    "affiliate" of ours may not be resold publicly except
    in compliance with the registration requirements of the
    Securities Act or under an exemption under Rule 144 or
    otherwise. Rule 144 permits securities acquired by an
    affiliate of the issuer to be sold into the market in an amount
    that does not exceed, during any three-month period, the greater
    of:
•
1% of the total number of the securities outstanding; or
•
the average weekly reported trading volume of the common units
    for the four weeks prior to the sale.
Sales under Rule 144 are also subject to specific manner of
    sale provisions, holding period requirements, notice
    requirements and the availability of current public information
    about us. A person who is not deemed to have been an affiliate
    of ours at any time during the three months preceding a sale,
    and who has beneficially owned his common units for at least six
    months (provided we are in compliance with the current public
    information requirement) or one year (regardless of whether we
    are in compliance with the current public information
    requirement), would be entitled to sell common units under
    Rule 144 without regard to the rule's public
    information requirements, volume limitations, manner of sale
    provisions and notice requirements.
Our partnership agreement provides that we may issue an
    unlimited number of limited partner interests of any type
    without a vote of the unitholders at any time. Any issuance of
    additional common units or other equity securities would result
    in a corresponding decrease in the proportionate ownership
    interest in us represented by, and could adversely affect the
    cash distributions to and market price of, common units then
    outstanding. Please read "The Partnership
    Agreement — Issuance of Additional Securities."
Under our partnership agreement, our general partner and its
    affiliates have the right to cause us to register under the
    Securities Act and applicable state securities laws the offer
    and sale of any common units that they hold. Subject to the
    terms and conditions of the partnership agreement, these
    registration rights allow our general partner and its affiliates
    or their assignees holding any common units to require
    registration of any of these common units and to include any of
    these common units in a registration by us of other common
    units, including common units offered by us or by any
    unitholder. Our general partner and its affiliates will continue
    to have these registration rights for two years following the
    withdrawal or removal of our general partner. In connection with
    any registration of this kind, we will indemnify each unitholder
    participating in the registration and its officers, directors,
    and controlling persons from and against any liabilities under
    the Securities Act or any applicable state securities laws
    arising from the registration statement or prospectus. We will
    bear all costs and expenses incidental to any registration,
    excluding any underwriting discounts and commissions. Except as
    described below, our general partner and its affiliates may sell
    their common units in private transactions at any time, subject
    to compliance with applicable laws.
C&T Coal, AIM Oxford, our general partner and the
    executive officers and directors of our general partner have
    agreed not to sell any common units they beneficially own for a
    period of 180 days from the date of this prospectus. Please
    read "Underwriting" for a description of these
lock-up
provisions.
170
Table of Contents
MATERIAL
    FEDERAL INCOME TAX CONSEQUENCES
This section is a summary of the material tax considerations
    that may be relevant to prospective unitholders who are
    individual citizens or residents of the U.S. and, unless
    otherwise noted in the following discussion, is the opinion of
    Latham & Watkins LLP, counsel to our general partner
    and us, insofar as it relates to legal conclusions with respect
    to matters of U.S. federal income tax law. This section is
    based upon current provisions of the Internal Revenue Code of
    1986, as amended (the "Internal Revenue Code"),
    existing and proposed Treasury regulations promulgated under the
    Internal Revenue Code (the "Treasury Regulations") and
    current administrative rulings and court decisions, all of which
    are subject to change. Later changes in these authorities may
    cause the tax consequences to vary substantially from the
    consequences described below. Unless the context otherwise
    requires, references in this section to "us" or
    "we" are references to Oxford Resource Partners, LP
    and our operating subsidiaries.
The following discussion does not comment on all federal income
    tax matters affecting us or our unitholders. Moreover, the
    discussion focuses on unitholders who are individual citizens or
    residents of the U.S. and has only limited application to
    corporations, estates, trusts, nonresident aliens or other
    unitholders subject to specialized tax treatment, such as
    tax-exempt institutions, foreign persons, IRAs, real estate
    investment trusts (REITs) or mutual funds. In addition, the
    discussion only comments, to a limited extent, on state, local,
    and foreign tax consequences. Accordingly, we encourage each
    prospective unitholder to consult, and depend on, his own tax
    advisor in analyzing the federal, state, local and foreign tax
    consequences particular to him of the ownership or disposition
    of common units.
No ruling has been or will be requested from the IRS regarding
    any matter affecting us or prospective unitholders. Instead, we
    will rely on opinions of Latham & Watkins LLP. Unlike
    a ruling, an opinion of counsel represents only that
    counsel's best legal judgment and does not bind the IRS or
    the courts. Accordingly, the opinions and statements made herein
    may not be sustained by a court if contested by the IRS. Any
    contest of this sort with the IRS may materially and adversely
    impact the market for the common units and the prices at which
    common units trade. In addition, the costs of any contest with
    the IRS, principally legal, accounting and related fees, will
    result in a reduction in cash available for distribution to our
    unitholders and our general partner and thus will be borne
    indirectly by our unitholders and our general partner.
    Furthermore, the tax treatment of us, or of an investment in us,
    may be significantly modified by future legislative or
    administrative changes or court decisions. Any modifications may
    or may not be retroactively applied.
All statements as to matters of federal income tax law and legal
    conclusions with respect thereto, but not as to factual matters,
    contained in this section, unless otherwise noted, are the
    opinion of Latham & Watkins LLP and are based on the
    accuracy of the representations made by us.
For the reasons described below, Latham & Watkins LLP
    has not rendered an opinion with respect to the following
    specific federal income tax issues: (i) the treatment of a
    unitholder whose common units are loaned to a short seller to
    cover a short sale of common units (please read
    "— Tax Consequences of Unit Ownership —
    Treatment of Short Sales"); (ii) whether our monthly
    convention for allocating taxable income and losses is permitted
    by existing Treasury Regulations (please read
    "— Disposition of Common Units —
    Allocations Between Transferors and Transferees"); and
    (iii) whether our method for depreciating Section 743
    adjustments is sustainable in certain cases (please read
    "— Tax Consequences of Unit Ownership —
    Section 754 Election").
Partnership
    Status
A partnership is not a taxable entity and incurs no federal
    income tax liability. Instead, each partner of a partnership is
    required to take into account his share of items of income,
    gain, loss and deduction of the partnership in computing his
    federal income tax liability, regardless of whether cash
    distributions are made to him by the partnership. Distributions
    by a partnership to a partner are generally not taxable to the
    partnership or the partner unless the amount of cash distributed
    to him is in excess of the partner's adjusted basis in his
    partnership interest.
171
Table of Contents
Section 7704 of the Internal Revenue Code provides that
    publicly traded partnerships will, as a general rule, be taxed
    as corporations. However, an exception, referred to as the
    "Qualifying Income Exception," exists with respect to
    publicly traded partnerships of which 90% or more of the gross
    income for every taxable year consists of "qualifying
    income." Qualifying income includes income and gains
    derived from the mining, production, transportation, storage and
    marketing of coal and certain other natural resources. Other
    types of qualifying income include interest (other than from a
    financial business), dividends, gains from the sale of real
    property and gains from the sale or other disposition of capital
    assets held for the production of income that otherwise
    constitutes qualifying income. We estimate that less
    than     % of our current gross income
    is not qualifying income; however, this estimate could change
    from time to time. Based upon and subject to this estimate, the
    factual representations made by us and our general partner and a
    review of the applicable legal authorities, Latham &
    Watkins LLP is of the opinion that at least 90% of our current
    gross income constitutes qualifying income. The portion of our
    income that is qualifying income may change from time to time.
No ruling has been or will be sought from the IRS and the IRS
    has made no determination as to our status or the status of our
    operating subsidiaries for federal income tax purposes or
    whether our operations generate "qualifying income"
    under Section 7704 of the Internal Revenue Code. Instead,
    we will rely on the opinion of Latham & Watkins LLP on
    such matters. It is the opinion of Latham & Watkins
    LLP that, based upon the Internal Revenue Code, its regulations,
    published revenue rulings and court decisions and the
    representations described below, we will be classified as a
    partnership and our operating subsidiaries (other than Harrison
    Resources) will be disregarded as an entity separate from us for
    federal income tax purposes. Harrison Resources will be treated
    as a partnership for federal income tax purposes.
In rendering its opinion, Latham & Watkins LLP has
    relied on factual representations made by us and our general
    partner. The representations made by us and our general partner
    upon which Latham & Watkins LLP has relied are:
•
Neither we nor the operating subsidiaries has elected or will
    elect to be treated as a corporation; and
•
For each taxable year, more than 90% of our gross income has
    been and will be income of the type that Latham &
    Watkins LLP has opined or will opine is "qualifying
    income" within the meaning of Section 7704(d) of the
    Internal Revenue Code; and
We believe that these representations have been true in the past
    and expect that these representations will continue to be true
    in the future.
If we fail to meet the Qualifying Income Exception, other than a
    failure that is determined by the IRS to be inadvertent and that
    is cured within a reasonable time after discovery (in which case
    the IRS may also require us to make adjustments with respect to
    our unitholders or pay other amounts), we will be treated as if
    we had transferred all of our assets, subject to liabilities, to
    a newly formed corporation, on the first day of the year in
    which we fail to meet the Qualifying Income Exception, in return
    for stock in that corporation, and then distributed that stock
    to the unitholders in liquidation of their interests in us. This
    deemed contribution and liquidation should be tax-free to
    unitholders and us so long as we, at that time, do not have
    liabilities in excess of the tax basis of our assets.
    Thereafter, we would be treated as a corporation for federal
    income tax purposes.
If we were taxed as a corporation in any taxable year, either as
    a result of a failure to meet the Qualifying Income Exception or
    otherwise, our items of income, gain, loss and deduction would
    be reflected only on our tax return rather than being passed
    through to our unitholders, and our net income would be taxed to
    us at corporate rates. In addition, any distribution made to a
    unitholder would be treated as taxable dividend income, to the
    extent of our current and accumulated earnings and profits, or,
    in the absence of earnings and profits, a nontaxable return of
    capital, to the extent of the unitholder's tax basis in his
    common units, or taxable capital gain, after the
    unitholder's tax basis in his common units is reduced to
    zero. Accordingly, taxation as a corporation would result in a
    material reduction in a unitholder's cash flow and
    after-tax return and thus would likely result in a substantial
    reduction of the value of the units.
The discussion below is based on Latham & Watkins
    LLP's opinion that we will be classified as a partnership
    for federal income tax purposes.
172
Table of Contents
Limited
    Partner Status
Unitholders who have become limited partners of Oxford Resource
    Partners, LP will be treated as partners of Oxford Resource
    Partners, LP for federal income tax purposes. Also, unitholders
    whose common units are held in street name or by a nominee and
    who have the right to direct the nominee in the exercise of all
    substantive rights attendant to the ownership of their common
    units will be treated as partners of Oxford Resource Partners,
    LP for federal income tax purposes.
A beneficial owner of common units whose units have been
    transferred to a short seller to complete a short sale would
    appear to lose his status as a partner with respect to those
    units for federal income tax purposes. Please read
    "— Tax Consequences of Unit Ownership —
    Treatment of Short Sales."
Income, gain, deductions or losses would not appear to be
    reportable by a unitholder who is not a partner for federal
    income tax purposes, and any cash distributions received by a
    unitholder who is not a partner for federal income tax purposes
    would therefore appear to be fully taxable as ordinary income.
    These holders are urged to consult their own tax advisors with
    respect to their tax consequences of holding common units in
    Oxford Resource Partners, LP. The references to
    "unitholders" in the discussion that follows are to
    persons who are treated as partners in Oxford Resource Partners,
    LP for federal income tax purposes.
Tax
    Consequences of Unit Ownership
Flow-Through of Taxable Income.
We will not
    pay any federal income tax. Instead, each unitholder will be
    required to report on his income tax return his share of our
    income, gains, losses and deductions without regard to whether
    we make cash distributions to him. Consequently, we may allocate
    income to a unitholder even if he has not received a cash
    distribution. Each unitholder will be required to include in
    income his allocable share of our income, gains, losses and
    deductions for our taxable year ending with or within his
    taxable year. Our taxable year ends on December 31.
Treatment of Distributions.
Distributions by
    us to a unitholder generally will not be taxable to the
    unitholder for federal income tax purposes, except to the extent
    the amount of any such cash distribution exceeds his tax basis
    in his common units immediately before the distribution. Our
    cash distributions in excess of a unitholder's tax basis
    generally will be considered to be gain from the sale or
    exchange of the common units, taxable in accordance with the
    rules described under "— Disposition of Common
    Units" below. Any reduction in a unitholder's share of
    our liabilities for which no partner, including the general
    partner, bears the economic risk of loss, known as
    "nonrecourse liabilities," will be treated as a
    distribution by us of cash to that unitholder. To the extent our
    distributions cause a unitholder's "at-risk"
    amount to be less than zero at the end of any taxable year, he
    must recapture any losses deducted in previous years. Please
    read "— Limitations on Deductibility of
    Losses."
A decrease in a unitholder's percentage interest in us
    because of our issuance of additional common units will decrease
    his share of our nonrecourse liabilities, and thus will result
    in a corresponding deemed distribution of cash. This deemed
    distribution may constitute a non-pro rata distribution. A
    non-pro rata distribution of money or property may result in
    ordinary income to a unitholder, regardless of his tax basis in
    his common units, if the distribution reduces the
    unitholder's share of our "unrealized
    receivables," including depreciation recapture, depletion
    recapture
and/or
substantially appreciated "inventory items," each as
    defined in the Internal Revenue Code, and collectively,
    "Section 751 Assets." To that extent, the
    unitholder will be treated as having been distributed his
    proportionate share of the Section 751 Assets and then
    having exchanged those assets with us in return for the non-pro
    rata portion of the actual distribution made to him. This latter
    deemed exchange will generally result in the unitholder's
    realization of ordinary income, which will equal the excess of
    (i) the non-pro rata portion of that distribution over
    (ii) the unitholder's tax basis (generally zero) for
    the share of Section 751 Assets deemed relinquished in the
    exchange.
Ratio of Taxable Income to Distributions.
We
    estimate that a purchaser of common units in this offering who
    owns those common units from the date of closing of this
    offering through the record date for distributions for the
    period ending December 31, 2013, will be allocated, on a
    cumulative basis, an amount of federal taxable income for that
    period that will be     % or less of
    the cash distributed with respect to that
173
Table of Contents
period. Thereafter, we anticipate that the ratio of allocable
    taxable income to cash distributions to the unitholders will
    increase. These estimates are based upon the assumption that
    gross income from operations will approximate the amount
    required to make the minimum quarterly distribution on all units
    and other assumptions with respect to capital expenditures, cash
    flow, net working capital and anticipated cash distributions.
    These estimates and assumptions are subject to, among other
    things, numerous business, economic, regulatory, legislative,
    competitive and political uncertainties beyond our control.
    Further, the estimates are based on current tax law and tax
    reporting positions that we will adopt and with which the IRS
    could disagree. Accordingly, we cannot assure you that these
    estimates will prove to be correct. The actual percentage of
    distributions that will constitute taxable income could be
    higher or lower than expected, and any differences could be
    material and could materially affect the value of the common
    units. For example, the ratio of allocable taxable income to
    cash distributions to a purchaser of common units in this
    offering will be greater, and perhaps substantially greater,
    than our estimate with respect to the period described above if:
•
gross income from operations exceeds the amount required to make
    minimum quarterly distributions on all units, yet we only
    distribute the minimum quarterly distributions on all
    units; or
•
we make a future offering of common units and use the proceeds
    of the offering in a manner that does not produce substantial
    additional deductions during the period described above, such as
    to repay indebtedness outstanding at the time of this offering
    or to acquire property that is not eligible for depreciation or
    amortization for federal income tax purposes or that is
    depreciable or amortizable at a rate significantly slower than
    the rate applicable to our assets at the time of this offering.
Basis of Common Units.
A unitholder's
    initial tax basis for his common units will be the amount he
    paid for the common units plus his share of our nonrecourse
    liabilities. That basis will be increased by his share of our
    income and by any increases in his share of our nonrecourse
    liabilities. That basis will be decreased, but not below zero,
    by distributions from us, by the unitholder's share of our
    losses, by any decreases in his share of our nonrecourse
    liabilities and by his share of our expenditures that are not
    deductible in computing taxable income and are not required to
    be capitalized. A unitholder will have no share of our debt that
    is recourse to our general partner, but will have a share,
    generally based on his share of profits, of our nonrecourse
    liabilities. Please read "— Disposition of Common
    Units — Recognition of Gain or Loss."
Limitations on Deductibility of Losses.
The
    deduction by a unitholder of his share of our losses will be
    limited to the tax basis in his units and, in the case of an
    individual unitholder, estate, trust, or corporate unitholder
    (if more than 50% of the value of the corporate
    unitholder's stock is owned directly or indirectly by or
    for five or fewer individuals or some tax-exempt organizations)
    to the amount for which the unitholder is considered to be
    "at risk" with respect to our activities, if that is
    less than his tax basis. A common unitholder subject to these
    limitations must recapture losses deducted in previous years to
    the extent that distributions cause his at-risk amount to be
    less than zero at the end of any taxable year. Losses disallowed
    to a unitholder or recaptured as a result of these limitations
    will carry forward and will be allowable as a deduction to the
    extent that his at-risk amount is subsequently increased,
    provided such losses do not exceed such common unitholders'
    tax basis in his common units. Upon the taxable disposition of a
    unit, any gain recognized by a unitholder can be offset by
    losses that were previously suspended by the at-risk limitation
    but may not be offset by losses suspended by the basis
    limitation. Any loss previously suspended by the at-risk
    limitation in excess of that gain would no longer be utilizable.
In general, a unitholder will be at risk to the extent of the
    tax basis of his units, excluding any portion of that basis
    attributable to his share of our nonrecourse liabilities,
    reduced by (i) any portion of that basis representing
    amounts otherwise protected against loss because of a guarantee,
    stop loss agreement or other similar arrangement and
    (ii) any amount of money he borrows to acquire or hold his
    units, if the lender of those borrowed funds owns an interest in
    us, is related to the unitholder or can look only to the units
    for repayment. A unitholder's at-risk amount will increase
    or decrease as the tax basis of the unitholder's units
    increases or decreases, other than tax basis increases or
    decreases attributable to increases or decreases in his share of
    our nonrecourse liabilities.
174
Table of Contents
In addition to the basis and at-risk limitations on the
    deductibility of losses, the passive loss limitations generally
    provide that individuals, estates, trusts and some closely-held
    corporations and personal service corporations can deduct losses
    from passive activities, which are generally trade or business
    activities in which the taxpayer does not materially
    participate, only to the extent of the taxpayer's income
    from those passive activities. The passive loss limitations are
    applied separately with respect to each publicly traded
    partnership. Consequently, any passive losses we generate will
    only be available to offset our passive income generated in the
    future and will not be available to offset income from other
    passive activities or investments, including our investments or
    a unitholder's investments in other publicly traded
    partnerships, or salary or active business income. Passive
    losses that are not deductible because they exceed a
    unitholder's share of income we generate may be deducted in
    full when he disposes of his entire investment in us in a fully
    taxable transaction with an unrelated party. The passive loss
    limitations are applied after other applicable limitations on
    deductions, including the at-risk rules and the basis limitation.
A unitholder's share of our net income may be offset by any
    of our suspended passive losses, but it may not be offset by any
    other current or carryover losses from other passive activities,
    including those attributable to other publicly traded
    partnerships.
Limitations on Interest Deductions.
The
    deductibility of a non-corporate taxpayer's
    "investment interest expense" is generally limited to
    the amount of that taxpayer's "net investment
    income." Investment interest expense includes:
•
interest on indebtedness properly allocable to property held for
    investment;
•
our interest expense attributed to portfolio income; and
•
the portion of interest expense incurred to purchase or carry an
    interest in a passive activity to the extent attributable to
    portfolio income.
The computation of a unitholder's investment interest
    expense will take into account interest on any margin account
    borrowing or other loan incurred to purchase or carry a unit.
    Net investment income includes gross income from property held
    for investment and amounts treated as portfolio income under the
    passive loss rules, less deductible expenses, other than
    interest, directly connected with the production of investment
    income, but generally does not include gains attributable to the
    disposition of property held for investment or qualified
    dividend income. The IRS has indicated that the net passive
    income earned by a publicly traded partnership will be treated
    as investment income to its unitholders. In addition, the
    unitholder's share of our portfolio income will be treated
    as investment income.
Entity-Level Collections.
If we are
    required or elect under applicable law to pay any federal,
    state, local or foreign income tax on behalf of any unitholder
    or our general partner or any former unitholder, we are
    authorized to pay those taxes from our funds. That payment, if
    made, will be treated as a distribution of cash to the
    unitholder on whose behalf the payment was made. If the payment
    is made on behalf of a person whose identity cannot be
    determined, we are authorized to treat the payment as a
    distribution to all current unitholders. We are authorized to
    amend our partnership agreement in the manner necessary to
    maintain uniformity of intrinsic tax characteristics of units
    and to adjust later distributions, so that after giving effect
    to these distributions, the priority and characterization of
    distributions otherwise applicable under our partnership
    agreement is maintained as nearly as is practicable. Payments by
    us as described above could give rise to an overpayment of tax
    on behalf of an individual unitholder in which event the
    unitholder would be required to file a claim in order to obtain
    a credit or refund.
Allocation of Income, Gain, Loss and
    Deduction.
In general, if we have a net profit,
    our items of income, gain, loss and deduction will be allocated
    among our general partner and the unitholders in accordance with
    their percentage interests in us. At any time that distributions
    are made to the common units in excess of distributions to the
    subordinated units, or incentive distributions are made to our
    general partner, gross income will be allocated to the
    recipients to the extent of these distributions. If we have a
    net loss, that loss will be allocated first to our general
    partner and the unitholders in accordance with their percentage
    interests in us to the extent of their positive capital accounts
    and, second, to our general partner.
175
Table of Contents
Specified items of our income, gain, loss and deduction will be
    allocated to account for (i) any difference between the tax
    basis and fair market value of our assets at the time of an
    offering and (ii) any difference between the tax basis and
    fair market value of any property contributed to us by the
    general partner and its affiliates that exists at the time of
    such contribution, together, referred to in this discussion as
    the "Contributed Property." The effect of these
    allocations, referred to as Section 704(c) Allocations, to
    a unitholder purchasing common units from us in this offering
    will be essentially the same as if the tax bases of our assets
    were equal to their fair market values at the time of this
    offering. In the event we issue additional common units or
    engage in certain other transactions in the future,
    "reverse Section 704(c) Allocations," similar to
    the Section 704(c) Allocations described above, will be
    made to the general partner and all of our unitholders
    immediately prior to such issuance or other transactions to
    account for the difference between the "book" basis
    for purposes of maintaining capital accounts and the fair market
    value of all property held by us at the time of such issuance or
    future transaction. In addition, items of recapture income will
    be allocated to the extent possible to the unitholder who was
    allocated the deduction giving rise to the treatment of that
    gain as recapture income in order to minimize the recognition of
    ordinary income by some unitholders. Finally, although we do not
    expect that our operations will result in the creation of
    negative capital accounts, if negative capital accounts
    nevertheless result, items of our income and gain will be
    allocated in an amount and manner sufficient to eliminate the
    negative balance as quickly as possible.
An allocation of items of our income, gain, loss or deduction,
    other than an allocation required by the Internal Revenue Code
    to eliminate the difference between a partner's
    "book" capital account, credited with the fair market
    value of Contributed Property, and "tax" capital
    account, credited with the tax basis of Contributed Property,
    referred to in this discussion as the "Book-Tax
    Disparity," will generally be given effect for federal
    income tax purposes in determining a partner's share of an
    item of income, gain, loss or deduction only if the allocation
    has substantial economic effect. In any other case, a
    partner's share of an item will be determined on the basis
    of his interest in us, which will be determined by taking into
    account all the facts and circumstances, including:
•
his relative contributions to us;
•
the interests of all the partners in profits and losses;
•
the interest of all the partners in cash flow; and
•
the rights of all the partners to distributions of capital upon
    liquidation.
Latham & Watkins LLP is of the opinion that, with the
    exception of the issues described in
    "— Section 754 Election" and
    "— Disposition of Common Units —
    Allocations Between Transferors and Transferees,"
    allocations under our partnership agreement will be given effect
    for federal income tax purposes in determining a partner's
    share of an item of income, gain, loss or deduction.
Treatment of Short Sales.
A unitholder whose
    units are loaned to a "short seller" to cover a short
    sale of units may be considered as having disposed of those
    units. If so, he would no longer be treated for tax purposes as
    a partner with respect to those units during the period of the
    loan and may recognize gain or loss from the disposition. As a
    result, during this period:
•
any of our income, gain, loss or deduction with respect to those
    units would not be reportable by the unitholder;
•
any cash distributions received by the unitholder as to those
    units would be fully taxable; and
•
all of these distributions would appear to be ordinary income.
Latham & Watkins LLP has not rendered an opinion
    regarding the tax treatment of a unitholder whose common units
    are loaned to a short seller to cover a short sale of common
    units; therefore, unitholders desiring to assure their status as
    partners and avoid the risk of gain recognition from a loan to a
    short seller are urged to modify any applicable brokerage
    account agreements to prohibit their brokers from borrowing and
    loaning their units. The IRS has previously announced that it is
    studying issues relating to the tax
176
Table of Contents
treatment of short sales of partnership interests. Please also
    read "— Disposition of Common Units —
    Recognition of Gain or Loss."
Alternative Minimum Tax.
Each unitholder will
    be required to take into account his distributive share of any
    items of our income, gain, loss or deduction for purposes of the
    alternative minimum tax. The current minimum tax rate for
    noncorporate taxpayers is 26% on the first $175,000 of
    alternative minimum taxable income in excess of the exemption
    amount and 28% on any additional alternative minimum taxable
    income. Prospective unitholders are urged to consult with their
    tax advisors as to the impact of an investment in units on their
    liability for the alternative minimum tax.
Tax Rates.
Under current law, the highest
    marginal U.S. federal income tax rate applicable to
    ordinary income of individuals is 35% and the highest marginal
    U.S. federal income tax rate applicable to long-term
    capital gains (generally, capital gains on certain assets held
    for more than twelve months) of individuals is 15%. However,
    absent new legislation extending the current rates, beginning
    January 1, 2011, the highest marginal U.S. federal
    income tax rate applicable to ordinary income and long-term
    capital gains of individuals will increase to 39.6% and 20%,
    respectively. Moreover, these rates are subject to change by new
    legislation at any time.
Section 754 Election.
We will make the
    election permitted by Section 754 of the Internal Revenue
    Code. That election is irrevocable without the consent of the
    IRS. The election will generally permit us to adjust a common
    unit purchaser's tax basis in our assets ("inside
    basis") under Section 743(b) of the Internal Revenue
    Code to reflect his purchase price. This election does not apply
    with respect to a person who purchases common units directly
    from us. The Section 743(b) adjustment belongs to the
    purchaser and not to other unitholders. For purposes of this
    discussion, the inside basis in our assets with respect to a
    unitholder will be considered to have two components:
    (i) his share of our tax basis in our assets ("common
    basis") and (ii) his Section 743(b) adjustment to
    that basis.
We will adopt the remedial allocation method as to all our
    properties. Where the remedial allocation method is adopted, the
    Treasury Regulations under Section 743 of the Internal
    Revenue Code require a portion of the Section 743(b)
    adjustment that is attributable to recovery property that is
    subject to depreciation under Section 168 of the Internal
    Revenue Code and whose book basis is in excess of its tax basis
    to be depreciated over the remaining cost recovery period for
    the property's unamortized Book-Tax Disparity. Under
    Treasury
Regulation Section 1.167(c)-1(a)(6),
a Section 743(b) adjustment attributable to property
    subject to depreciation under Section 167 of the Internal
    Revenue Code, rather than cost recovery deductions under
    Section 168, is generally required to be depreciated using
    either the straight-line method or the 150% declining balance
    method. Under our partnership agreement, our general partner is
    authorized to take a position to preserve the uniformity of
    units even if that position is not consistent with these and any
    other Treasury Regulations. Please read
    "— Uniformity of Units."
Although Latham & Watkins LLP is unable to opine as to
    the validity of this approach, we intend to depreciate the
    portion of a Section 743(b) adjustment attributable to
    unrealized appreciation in the value of Contributed Property, to
    the extent of any unamortized Book-Tax Disparity, using a rate
    of depreciation or amortization derived from the depreciation or
    amortization method and useful life applied to the
    property's unamortized Book-Tax Disparity, or treat that
    portion as
non-amortizable
to the extent attributable to property which is not amortizable.
    This method is consistent with the methods employed by other
    publicly traded partnerships but is arguably inconsistent with
    Treasury Regulation
Section 1.167(c)-1(a)(6),
which is not expected to directly apply to a material portion of
    our assets. To the extent this Section 743(b) adjustment is
    attributable to appreciation in value in excess of the
    unamortized Book-Tax Disparity, we will apply the rules
    described in the Treasury Regulations and legislative history.
    If we determine that this position cannot reasonably be taken,
    we may take a depreciation or amortization position under which
    all purchasers acquiring units in the same month would receive
    depreciation or amortization, whether attributable to common
    basis or a Section 743(b) adjustment, based upon the same
    applicable rate as if they had purchased a direct interest in
    our assets. This kind of aggregate approach may result in lower
    annual depreciation or amortization deductions than would
    otherwise be allowable to some unitholders. Please read
    "— Uniformity of Units." A unitholder's
    tax basis for his common units is reduced by his share of our
    deductions (whether or not such deductions were
177
Table of Contents
claimed on an individual's income tax return) so that any
    position we take that understates deductions will overstate the
    common unitholder's basis in his common units, which may
    cause the unitholder to understate gain or overstate loss on any
    sale of such units. Please read "— Disposition of
    Common Units — Recognition of Gain or Loss." The
    IRS may challenge our position with respect to depreciating or
    amortizing the Section 743(b) adjustment we take to
    preserve the uniformity of the units. If such a challenge were
    sustained, the gain from the sale of units might be increased
    without the benefit of additional deductions.
A Section 754 election is advantageous if the
    transferee's tax basis in his units is higher than the
    units' share of the aggregate tax basis of our assets
    immediately prior to the transfer. In that case, as a result of
    the election, the transferee would have, among other items, a
    greater amount of depreciation and depletion deductions and his
    share of any gain or loss on a sale of our assets would be less.
    Conversely, a Section 754 election is disadvantageous if
    the transferee's tax basis in his units is lower than those
    units' share of the aggregate tax basis of our assets
    immediately prior to the transfer. Thus, the fair market value
    of the units may be affected either favorably or unfavorably by
    the election. A basis adjustment is required regardless of
    whether a Section 754 election is made in the case of a
    transfer of an interest in us if we have a substantial
    built — in loss immediately after the transfer, or if
    we distribute property and have a substantial basis reduction.
    Generally a built — in loss or a basis reduction is
    substantial if it exceeds $250,000.
The calculations involved in the Section 754 election are
    complex and will be made on the basis of assumptions as to the
    value of our assets and other matters. For example, the
    allocation of the Section 743(b) adjustment among our
    assets must be made in accordance with the Internal Revenue
    Code. The IRS could seek to reallocate some or all of any
    Section 743(b) adjustment allocated by us to our tangible
    assets to goodwill instead. Goodwill, as an intangible asset, is
    generally nonamortizable or amortizable over a longer period of
    time or under a less accelerated method than our tangible
    assets. We cannot assure you that the determinations we make
    will not be successfully challenged by the IRS and that the
    deductions resulting from them will not be reduced or disallowed
    altogether. Should the IRS require a different basis adjustment
    to be made, and should, in our opinion, the expense of
    compliance exceed the benefit of the election, we may seek
    permission from the IRS to revoke our Section 754 election.
    If permission is granted, a subsequent purchaser of units may be
    allocated more income than he would have been allocated had the
    election not been revoked.
Tax
    Treatment of Operations
Accounting Method and Taxable Year.
We use the
    year ending December 31 as our taxable year and the accrual
    method of accounting for federal income tax purposes. Each
    unitholder will be required to include in income his share of
    our income, gain, loss and deduction for our taxable year ending
    within or with his taxable year. In addition, a unitholder who
    has a taxable year ending on a date other than December 31 and
    who disposes of all of his units following the close of our
    taxable year but before the close of his taxable year must
    include his share of our income, gain, loss and deduction in
    income for his taxable year, with the result that he will be
    required to include in income for his taxable year his share of
    more than twelve months of our income, gain, loss and deduction.
    Please read "— Disposition of Common
    Units — Allocations Between Transferors and
    Transferees."
Initial Tax Basis, Depreciation and
    Amortization.
The tax basis of our assets will be
    used for purposes of computing depreciation and cost recovery
    deductions and, ultimately, gain or loss on the disposition of
    these assets. The federal income tax burden associated with the
    difference between the fair market value of our assets and their
    tax basis immediately prior to (i) this offering will be
    borne by our general partner and its affiliates, and
    (ii) any other offering will be borne by our general
    partner and all of our unitholders as of that time. Please read
    "— Tax Consequences of Unit Ownership —
    Allocation of Income, Gain, Loss and Deduction."
To the extent allowable, we may elect to use the depreciation
    and cost recovery methods that will result in the largest
    deductions being taken in the early years after assets subject
    to these allowances are placed in service. Please read
    "— Uniformity of Units." Property we
    subsequently acquire or construct may be depreciated using
    accelerated methods permitted by the Internal Revenue Code.
178
Table of Contents
If we dispose of depreciable property by sale, foreclosure or
    otherwise, all or a portion of any gain, determined by reference
    to the amount of depreciation previously deducted and the nature
    of the property, may be subject to the recapture rules and taxed
    as ordinary income rather than capital gain. Similarly, a
    unitholder who has taken cost recovery or depreciation
    deductions with respect to property we own will likely be
    required to recapture some or all of those deductions as
    ordinary income upon a sale of his interest in us. Please read
    "— Tax Consequences of Unit Ownership —
    Allocation of Income, Gain, Loss and Deduction" and
    "— Disposition of Common Units —
    Recognition of Gain or Loss."
The costs we incur in selling our units (called
    "syndication expenses") must be capitalized and cannot
    be deducted currently, ratably or upon our termination. There
    are uncertainties regarding the classification of costs as
    organization expenses, which may be amortized by us, and as
    syndication expenses, which may not be amortized by us. The
    underwriting discounts and commissions we incur will be treated
    as syndication expenses.
Valuation and Tax Basis of Our Properties.
The
    federal income tax consequences of the ownership and disposition
    of units will depend in part on our estimates of the relative
    fair market values, and the initial tax bases, of our assets.
    Although we may from time to time consult with professional
    appraisers regarding valuation matters, we will make many of the
    relative fair market value estimates ourselves. These estimates
    and determinations of basis are subject to challenge and will
    not be binding on the IRS or the courts. If the estimates of
    fair market value or basis are later found to be incorrect, the
    character and amount of items of income, gain, loss or
    deductions previously reported by unitholders might change, and
    unitholders might be required to adjust their tax liability for
    prior years and incur interest and penalties with respect to
    those adjustments.
Coal Income.
Section 631 of the Internal
    Revenue Code provides special rules by which gains or losses on
    the sale of coal may be treated, in whole or in part, as gains
    or losses from the sale of property used in a trade or business
    under Section 1231 of the Internal Revenue Code.
    Specifically, Section 631(c) provides that if the owner of
    coal held for more than one year disposes of that coal under a
    contract by virtue of which the owner retains an economic
    interest in the coal, the gain or loss realized will be treated
    under Section 1231 of the Internal Revenue Code as gain or
    loss from property used in a trade or business.
    Section 1231 gains and losses may be treated as capital
    gains and losses. Please read "— Sales of Coal
    Reserves." In computing such gain or loss, the amount
    realized is reduced by the adjusted depletion basis in the coal,
    determined as described in "— Coal
    Depletion." For purposes of Section 631(c), the coal
    generally is deemed to be disposed of on the day on which the
    coal is mined. Further, Treasury regulations promulgated under
    Section 631 provide that advance royalty payments may also
    be treated as proceeds from sales of coal to which
    Section 631 applies and, therefore, such payment may be
    treated as capital gain under Section 1231. However, if the
    right to mine the related coal expires or terminates under the
    contract that provides for the payment of advance royalty
    payments or such right is abandoned before the coal has been
    mined, we may, pursuant to the Treasury regulations, file an
    amended return that reflects the payments attributable to
    unmined coal as ordinary income and not as received from the
    sale of coal under Section 631.
Our royalties from coal leases generally will be treated as
    proceeds from sales of coal to which Section 631 applies.
    Accordingly, the difference between the royalties paid to us by
    the lessees and the adjusted depletion basis in the extracted
    coal generally will be treated as gain from the sale of property
    used in a trade or business, which may be treated as capital
    gain under Section 1231. Please read
    "— Sales of Coal Reserves." Our royalties
    that do not qualify under Section 631(c) generally will be
    taxable as ordinary income in the year of sale.
Coal Depletion.
In general, we are entitled to
    depletion deductions with respect to coal mined from the
    underlying mineral property. We generally are entitled to the
    greater of cost depletion limited to the basis of the property
    or percentage depletion. The percentage depletion rate for coal
    is 10%.
Depletion deductions we claim generally will reduce the tax
    basis of the underlying mineral property. Depletion deductions
    can, however, exceed the total tax basis of the mineral
    property. The excess of our percentage depletion deductions over
    the adjusted tax basis of the property at the end of the taxable
    year is subject to tax preference treatment in computing the
    alternative minimum tax. Please read "— Tax
179
Table of Contents
Consequences of Unit Ownership — Alternative Minimum
    Tax." Upon the disposition of the mineral property, a
    portion of the gain, if any, equal to the lesser of the
    deductions for depletion which reduce the adjusted tax basis of
    the mineral property plus deductible development and mining
    exploration expenses (discussed below), or the amount of gain
    recognized upon the disposition, will be treated as ordinary
    income to us. In addition, a corporate unitholder's
    allocable share of the amount allowable as a percentage
    depletion deduction for any property will be reduced by 20% of
    the excess, if any, of that partner's allocable share of
    the amount of the percentage depletion deductions for the
    taxable year over the adjusted tax basis of the mineral property
    as of the close of the taxable year.
Mining Exploration and Development
    Expenditures.
We will elect to currently deduct
    mining exploration expenditures that we pay or incur to
    determine the existence, location, extent or quality of coal
    deposits prior to the time the existence of coal in commercially
    marketable quantities has been disclosed.
Amounts we deduct for mine exploration expenditures must be
    recaptured and included in our taxable income at the time a mine
    reaches the production stage, unless we elect to reduce future
    depletion deductions by the amount of the recapture. A mine
    reaches the producing stage when the major part of the coal
    production is obtained from working mines other than those
    opened for the purpose of development or the principal activity
    of the mine is the production of developed coal rather than the
    development of additional coal for mining. This recapture is
    accomplished through the disallowance of both cost and
    percentage depletion deductions on the particular mine reaching
    the producing stage. This disallowance of depletion deductions
    continues until the amount of adjusted exploration expenditures
    with respect to the mine have been fully recaptured. This
    recapture is not applied to the full amount of the previously
    deducted exploration expenditures. Instead, these expenditures
    are reduced by the amount of percentage depletion, if any, that
    was lost as a result of deducting these exploration expenditures.
We generally elect to defer mine development expenses,
    consisting of expenditures incurred in making coal accessible
    for extraction, after the exploration process has disclosed the
    existence of coal in commercially marketable quantities, and
    deduct them on a ratable basis as the coal benefited by the
    expenses is sold.
Mine exploration and development expenditures are subject to
    recapture as ordinary income to the extent of any gain upon a
    sale or other disposition of our property or of your common
    units. See "— Disposition of Common Units."
    Corporate unitholders are subject to an additional rule that
    requires them to capitalize a portion of their otherwise
    deductible mine exploration and development expenditures.
    Corporate unitholders, other than some S corporations, are
    required to reduce their otherwise deductible exploration
    expenditures by 30%. These capitalized mine exploration and
    development expenditures must be amortized over a
60-month
period, beginning in the month paid or incurred, using a
    straight-line method and may not be treated as part of the basis
    of the property for purposes of computing depletion.
When computing the alternative minimum tax, mine exploration and
    development expenditures are capitalized and deducted over a ten
    year period. Unitholders may avoid this alternative minimum tax
    adjustment of their mine exploration and development
    expenditures by electing to capitalize all or part of the
    expenditures and deducting them over ten years for regular
    income tax purposes. You may select the specific amount of these
    expenditures for which you wish to make this election.
Sales of Coal Reserves.
If any coal reserves
    are sold or otherwise disposed of in a taxable transaction, we
    will recognize gain or loss measured by the difference between
    the amount realized (including the amount of any indebtedness
    assumed by the purchaser upon such disposition or to which such
    property is subject) and the adjusted tax basis of the property
    sold. Generally, the character of any gain or loss recognized
    upon that disposition will depend upon whether our coal reserves
    or the mined coal sold are held by us:
•
for sale to customers in the ordinary course of business (i.e.,
    we are a "dealer" with respect to that property),
•
for use in a trade or business within the meaning of
    Section 1231 of the Internal Revenue Code, or
•
as a capital asset within the meaning of Section 1221 of
    the Internal Revenue Code.
180
Table of Contents
In determining dealer status with respect to coal reserves and
    other types of real estate, the courts have identified a number
    of factors for distinguishing between a particular property held
    for sale in the ordinary course of business and one held for
    investment. Any determination must be based on all the facts and
    circumstances surrounding the particular property and sale in
    question.
We intend to hold our coal reserves for use in a trade or
    business and achieving long-term capital appreciation. Although
    our general partner may consider strategic sales of coal
    reserves consistent with achieving long-term capital
    appreciation, our general partner does not anticipate frequent
    sales of coal reserves. Thus, the general partner does not
    believe we will be viewed as a dealer. In light of the factual
    nature of this question, however, there is no assurance that our
    purposes for holding our properties will not change and that our
    future activities will not cause us to be a "dealer"
    in coal reserves.
If we are not a dealer with respect to our coal reserves and we
    have held the disposed property for more than a one-year period
    primarily for use in our trade or business, the character of any
    gain or loss realized from a disposition of the property will be
    determined under Section 1231 of the Internal Revenue Code.
    If we have not held the property for more than one year at the
    time of the sale, gain or loss from the sale will be taxable as
    ordinary income.
A unitholder's distributive share of any Section 1231
    gain or loss generated by us will be aggregated with any other
    gains and losses realized by that unitholder from the
    disposition of property used in the trade or business, as
    defined in Section 1231(b) of the Internal Revenue Code,
    and from the involuntary conversion of such properties and of
    capital assets held in connection with a trade or business or a
    transaction entered into for profit for the requisite holding
    period. If a net gain results, all such gains and losses will be
    long-term capital gains and losses; if a net loss results, all
    such gains and losses will be ordinary income and losses. Net
    Section 1231 gains will be treated as ordinary income to
    the extent of prior net Section 1231 losses of the taxpayer
    or predecessor taxpayer for the five most recent prior taxable
    years to the extent such losses have not previously been offset
    against Section 1231 gains. Losses are deemed recaptured in
    the chronological order in which they arose.
If we are not a dealer with respect to our coal reserves and
    that property is not used in a trade or business, the property
    will be a "capital asset" within the meaning of
    Section 1221 of the Internal Revenue Code. Gain or loss
    recognized from the disposition of that property will be taxable
    as capital gain or loss, and the character of such capital gain
    or loss as long-term or short-term will be based upon our
    holding period of such property at the time of its sale. The
    requisite holding period for long-term capital gain is more than
    one year.
Upon a disposition of coal reserves, a portion of the gain, if
    any, equal to the lesser of (1) the depletion deductions
    that reduced the tax basis of the disposed mineral property plus
    deductible development and mining exploration expenses or
    (2) the amount of gain recognized on the disposition, will
    be treated as ordinary income to us.
Deduction for U.S. Production
    Activities.
Subject to the limitations on the
    deductibility of losses discussed above and the limitation
    discussed below, unitholders will be entitled to a deduction,
    herein referred to as the Section 199 deduction, equal to a
    specified percentage of our qualified production activities
    income that is allocated to such unitholder. The percentage is
    currently 9% for qualified production activities income.
Qualified production activities income is generally equal to
    gross receipts from domestic production activities reduced by
    cost of goods sold allocable to those receipts, other expenses
    directly associated with those receipts, and a share of other
    deductions, expenses and losses that are not directly allocable
    to those receipts or another class of income. The products
    produced must be manufactured, produced, grown or extracted in
    whole or in significant part by the taxpayer in the United
    States.
For a partnership, the Section 199 deduction is determined
    at the partner level. To determine his Section 199
    deduction, each unitholder will aggregate his share of the
    qualified production activities income allocated to him from us
    with the unitholder's qualified production activities
    income from other sources. Each unitholder must take into
    account his distributive share of the expenses allocated to him
    from our qualified production activities regardless of whether
    we otherwise have taxable income. However, our expenses that
181
Table of Contents
otherwise would be taken into account for purposes of computing
    the Section 199 deduction are only taken into account if
    and to the extent the unitholder's share of losses and
    deductions from all of our activities is not disallowed by the
    basis rules, the at-risk rules or the passive activity loss
    rules. Please read "— Tax Consequences of Unit
    Ownership — Limitations on Deductibility of
    Losses."
The amount of a unitholder's Section 199 deduction for
    each year is limited to 50% of the IRS
Form W-2
wages actually or deemed paid by the unitholder during the
    calendar year that are deducted in arriving at qualified
    production activities income. Each unitholder is treated as
    having been allocated IRS
Form W-2
wages from us equal to the unitholder's allocable share of
    our wages that are deducted in arriving at qualified production
    activities income for that taxable year. It is not anticipated
    that we or our subsidiaries will pay material wages that will be
    allocated to our unitholders, and thus a unitholder's
    ability to claim the Section 199 deduction may be limited.
Disposition
    of Common Units
Recognition of Gain or Loss.
Gain or loss will
    be recognized on a sale of units equal to the difference between
    the amount realized and the unitholder's tax basis for the
    units sold. A unitholder's amount realized will be measured
    by the sum of the cash or the fair market value of other
    property received by him plus his share of our nonrecourse
    liabilities. Because the amount realized includes a
    unitholder's share of our nonrecourse liabilities, the gain
    recognized on the sale of units could result in a tax liability
    in excess of any cash received from the sale.
Prior distributions from us that in the aggregate were in excess
    of cumulative net taxable income for a common unit and,
    therefore, decreased a unitholder's tax basis in that
    common unit will, in effect, become taxable income if the common
    unit is sold at a price greater than the unitholder's tax
    basis in that common unit, even if the price received is less
    than his original cost.
Except as noted below, gain or loss recognized by a unitholder,
    other than a "dealer" in units, on the sale or
    exchange of a unit will generally be taxable as capital gain or
    loss. Capital gain recognized by an individual on the sale of
    units held for more than twelve months will generally be taxed
    at a maximum U.S. federal income tax rate of 15% through
    December 31, 2010 and 20% thereafter (absent new
    legislation extending or adjusting the current rate). However, a
    portion of this gain or loss, which will likely be substantial,
    will be separately computed and taxed as ordinary income or loss
    under Section 751 of the Internal Revenue Code to the
    extent attributable to assets giving rise to depreciation
    recapture or other "unrealized receivables" or to
    "inventory items" we own. The term "unrealized
    receivables" includes potential recapture items, including
    depreciation and depletion recapture. Ordinary income
    attributable to unrealized receivables, inventory items and
    depreciation recapture may exceed net taxable gain realized upon
    the sale of a unit and may be recognized even if there is a net
    taxable loss realized on the sale of a unit. Thus, a unitholder
    may recognize both ordinary income and a capital loss upon a
    sale of units. Net capital losses may offset capital gains and
    no more than $3,000 of ordinary income, in the case of
    individuals, and may only be used to offset capital gains in the
    case of corporations.
The IRS has ruled that a partner who acquires interests in a
    partnership in separate transactions must combine those
    interests and maintain a single adjusted tax basis for all those
    interests. Upon a sale or other disposition of less than all of
    those interests, a portion of that tax basis must be allocated
    to the interests sold using an "equitable
    apportionment" method, which generally means that the tax
    basis allocated to the interest sold equals an amount that bears
    the same relation to the partner's tax basis in his entire
    interest in the partnership as the value of the interest sold
    bears to the value of the partner's entire interest in the
    partnership. Treasury Regulations under Section 1223 of the
    Internal Revenue Code allow a selling unitholder who can
    identify common units transferred with an ascertainable holding
    period to elect to use the actual holding period of the common
    units transferred. Thus, according to the ruling discussed
    above, a common unitholder will be unable to select high or low
    basis common units to sell as would be the case with corporate
    stock, but, according to the Treasury Regulations, he may
    designate specific common units sold for purposes of determining
    the holding period of units transferred. A unitholder electing
    to use the actual holding period of common units transferred
    must consistently use that identification method for all
    subsequent sales or
182
Table of Contents
exchanges of common units. A unitholder considering the purchase
    of additional units or a sale of common units purchased in
    separate transactions is urged to consult his tax advisor as to
    the possible consequences of this ruling and application of the
    Treasury Regulations.
Specific provisions of the Internal Revenue Code affect the
    taxation of some financial products and securities, including
    partnership interests, by treating a taxpayer as having sold an
    "appreciated" partnership interest, one in which gain
    would be recognized if it were sold, assigned or terminated at
    its fair market value, if the taxpayer or related persons
    enter(s) into:
•
a short sale;
•
an offsetting notional principal contract; or
•
a futures or forward contract with respect to the partnership
    interest or substantially identical property.
Moreover, if a taxpayer has previously entered into a short
    sale, an offsetting notional principal contract or a futures or
    forward contract with respect to the partnership interest, the
    taxpayer will be treated as having sold that position if the
    taxpayer or a related person then acquires the partnership
    interest or substantially identical property. The Secretary of
    the Treasury is also authorized to issue regulations that treat
    a taxpayer that enters into transactions or positions that have
    substantially the same effect as the preceding transactions as
    having constructively sold the financial position.
Allocations Between Transferors and
    Transferees.
In general, our taxable income and
    losses will be determined annually, will be prorated on a
    monthly basis and will be subsequently apportioned among the
    unitholders in proportion to the number of units owned by each
    of them as of the opening of the applicable exchange on the
    first business day of the month, which we refer to in this
    prospectus as the "Allocation Date." However, gain or
    loss realized on a sale or other disposition of our assets other
    than in the ordinary course of business will be allocated among
    the unitholders on the Allocation Date in the month in which
    that gain or loss is recognized. As a result, a unitholder
    transferring units may be allocated income, gain, loss and
    deduction realized after the date of transfer.
Although simplifying conventions are contemplated by the
    Internal Revenue Code and most publicly traded partnerships use
    similar simplifying conventions, the use of this method may not
    be permitted under existing Treasury Regulations. Recently, the
    Department of the Treasury and the IRS issued proposed Treasury
    Regulations that provide a safe harbor pursuant to which a
    publicly traded partnership may use a similar monthly
    simplifying convention to allocate tax items among transferor
    and transferee unitholders, although such tax items must be
    prorated on a daily basis. Existing publicly traded partnerships
    are entitled to rely on these proposed Treasury Regulations;
    however, they are not binding on the IRS and are subject to
    change until final Treasury Regulations are issued. Accordingly,
    Latham & Watkins LLP is unable to opine on the
    validity of this method of allocating income and deductions
    between transferor and transferee unitholders. If this method is
    not allowed under the Treasury Regulations, or only applies to
    transfers of less than all of the unitholder's interest,
    our taxable income or losses might be reallocated among the
    unitholders. We are authorized to revise our method of
    allocation between transferor and transferee unitholders, as
    well as unitholders whose interests vary during a taxable year,
    to conform to a method permitted under future Treasury
    Regulations.
A unitholder who owns units at any time during a quarter and who
    disposes of them prior to the record date set for a cash
    distribution for that quarter will be allocated items of our
    income, gain, loss and deductions attributable to that quarter
    but will not be entitled to receive that cash distribution.
Notification Requirements.
A unitholder who
    sells any of his units is generally required to notify us in
    writing of that sale within 30 days after the sale (or, if
    earlier, January 15 of the year following the sale). A purchaser
    of units who purchases units from another unitholder is also
    generally required to notify us in writing of that purchase
    within 30 days after the purchase. Upon receiving such
    notifications, we are required to notify the IRS of that
    transaction and to furnish specified information to the
    transferor and transferee. Failure to notify us of a purchase
    may, in some cases, lead to the imposition of penalties.
    However, these
183
Table of Contents
reporting requirements do not apply to a sale by an individual
    who is a citizen of the U.S. and who effects the sale or
    exchange through a broker who will satisfy such requirements.
Constructive Termination.
We will be
    considered to have been terminated for tax purposes if there are
    sales or exchanges which, in the aggregate, constitute 50% or
    more of the total interests in our capital and profits within a
    twelve-month period. For purposes of measuring whether the 50%
    threshold is reached, multiple sales of the same interest are
    counted only once. A constructive termination results in the
    closing of our taxable year for all unitholders. In the case of
    a unitholder reporting on a taxable year other than a fiscal
    year ending December 31, the closing of our taxable year
    may result in more than twelve months of our taxable income or
    loss being includable in his taxable income for the year of
    termination. A constructive termination occurring on a date
    other than December 31 will result in us filing two tax returns
    (and unitholders could receive two Schedules K-1 if the relief
    discussed below is not available) for one fiscal year and the
    cost of the preparation of these returns will be borne by all
    common unitholders. We would be required to make new tax
    elections after a termination, including a new election under
    Section 754 of the Internal Revenue Code, and a termination
    would result in a deferral of our deductions for depreciation. A
    termination could also result in penalties if we were unable to
    determine that the termination had occurred. Moreover, a
    termination might either accelerate the application of, or
    subject us to, any tax legislation enacted before the
    termination. The IRS has recently announced a relief procedure
    whereby if a publicly traded partnership that has technically
    terminated requests publicly traded partnership technical
    termination relief and the IRS grants such relief, among other
    things, the partnership will only have to provide one
Schedule K-1
to unitholders for the year notwithstanding two partnership tax
    years.
Uniformity
    of Units
Because we cannot match transferors and transferees of units, we
    must maintain uniformity of the economic and tax characteristics
    of the units to a purchaser of these units. In the absence of
    uniformity, we may be unable to completely comply with a number
    of federal income tax requirements, both statutory and
    regulatory. A lack of uniformity can result from a literal
    application of Treasury
Regulation Section 1.167(c)-1(a)(6).
Any non-uniformity could have a negative impact on the value of
    the units. Please read "— Tax Consequences of
    Unit Ownership — Section 754 Election."
We intend to depreciate the portion of a Section 743(b)
    adjustment attributable to unrealized appreciation in the value
    of Contributed Property, to the extent of any unamortized
    Book-Tax Disparity, using a rate of depreciation or amortization
    derived from the depreciation or amortization method and useful
    life applied to the property's unamortized Book-Tax
    Disparity, or treat that portion as nonamortizable, to the
    extent attributable to property the common basis of which is not
    amortizable, consistent with the regulations under
    Section 743 of the Internal Revenue Code, even though that
    position may be inconsistent with Treasury
Regulation Section 1.167(c)-1(a)(6),
which is not expected to directly apply to a material portion of
    our assets. Please read "— Tax Consequences of
    Unit Ownership — Section 754 Election." To
    the extent that the Section 743(b) adjustment is
    attributable to appreciation in value in excess of the
    unamortized Book-Tax Disparity, we will apply the rules
    described in the Treasury Regulations and legislative history.
    If we determine that this position cannot reasonably be taken,
    we may adopt a depreciation and amortization position under
    which all purchasers acquiring units in the same month would
    receive depreciation and amortization deductions, whether
    attributable to a common basis or Section 743(b)
    adjustment, based upon the same applicable methods and lives as
    if they had purchased a direct interest in our property. If this
    position is adopted, it may result in lower annual depreciation
    and amortization deductions than would otherwise be allowable to
    some unitholders and risk the loss of depreciation and
    amortization deductions not taken in the year that these
    deductions are otherwise allowable. This position will not be
    adopted if we determine that the loss of depreciation and
    amortization deductions will have a material adverse effect on
    the unitholders. If we choose not to utilize this aggregate
    method, we may use any other reasonable depreciation and
    amortization method to preserve the uniformity of the intrinsic
    tax characteristics of any units that would not have a material
    adverse effect on the unitholders. The IRS may challenge any
    method of depreciating the Section 743(b) adjustment
    described in this paragraph. If this challenge were sustained,
    the uniformity of units
184
Table of Contents
might be affected, and the gain from the sale of units might be
    increased without the benefit of additional deductions. Please
    read "— Disposition of Common Units —
    Recognition of Gain or Loss."
Tax-Exempt
    Organizations and Other Investors
Ownership of units by employee benefit plans, other tax-exempt
    organizations, non-resident aliens, foreign corporations and
    other foreign persons raises issues unique to those investors
    and, as described below to a limited extent, may have
    substantially adverse tax consequences to them. If you are a
    tax-exempt entity or a
non-U.S. person,
you should consult your tax advisor before investing in our
    common units.
Employee benefit plans and most other organizations exempt from
    federal income tax, including individual retirement accounts and
    other retirement plans, are subject to federal income tax on
    unrelated business taxable income. Virtually all of our income
    allocated to a unitholder that is a tax-exempt organization will
    be unrelated business taxable income and will be taxable to it
Non-resident aliens and foreign corporations, trusts or estates
    that own units will be considered to be engaged in business in
    the U.S. because of the ownership of units. As a
    consequence, they will be required to file federal tax returns
    to report their share of our income, gain, loss or deduction and
    pay federal income tax at regular rates on their share of our
    net income or gain. Moreover, under rules applicable to publicly
    traded partnerships, we will withhold at the highest applicable
    effective tax rate from cash distributions made quarterly to
    foreign unitholders. Each foreign unitholder must obtain a
    taxpayer identification number from the IRS and submit that
    number to our transfer agent on a
Form W-8BEN
or applicable substitute form in order to obtain credit for
    these withholding taxes. A change in applicable law may require
    us to change these procedures.
In addition, because a foreign corporation that owns units will
    be treated as engaged in a U.S. trade or business, that
    corporation may be subject to the U.S. branch profits tax
    at a rate of 30%, in addition to regular federal income tax, on
    its share of our income and gain, as adjusted for changes in the
    foreign corporation's "U.S. net equity,"
    which is effectively connected with the conduct of a
    U.S. trade or business. That tax may be reduced or
    eliminated by an income tax treaty between the U.S. and the
    country in which the foreign corporate unitholder is a
    "qualified resident." In addition, this type of
    unitholder is subject to special information reporting
    requirements under Section 6038C of the Internal Revenue
    Code.
A foreign unitholder who sells or otherwise disposes of a common
    unit will be subject to U.S. federal income tax on gain
    realized from the sale or disposition of that unit to the extent
    the gain is effectively connected with a U.S. trade or
    business of the foreign unitholder. Under a ruling published by
    the IRS, interpreting the scope of "effectively connected
    income," a foreign unitholder would be considered to be
    engaged in a trade or business in the U.S. by virtue of the
    U.S. activities of the partnership, and part or all of that
    unitholder's gain would be effectively connected with that
    unitholder's indirect U.S. trade or business.
    Moreover, under the Foreign Investment in Real Property Tax Act,
    a foreign common unitholder generally will be subject to
    U.S. federal income tax upon the sale or disposition of a
    common unit if (i) he owned (directly or constructively
    applying certain attribution rules) more than 5% of our common
    units at any time during the five-year period ending on the date
    of such disposition and (ii) 50% or more of the fair market
    value of all of our assets consisted of U.S. real property
    interests at any time during the shorter of the period during
    which such unitholder held the common units or the
5-year
period ending on the date of disposition. Currently, more than
    50% of our assets consist of U.S. real property interests
    and we do not expect that to change in the foreseeable future.
    Therefore, foreign unitholders may be subject to federal income
    tax on gain from the sale or disposition of their units.
Administrative
    Matters
Information Returns and Audit Procedures.
We
    intend to furnish to each unitholder, within 90 days after
    the close of each calendar year, specific tax information,
    including a
Schedule K-1,
which describes his share of our income, gain, loss and
    deduction for our preceding taxable year. In preparing this
    information, which will not be reviewed by counsel, we will take
    various accounting and reporting positions, some of which have
    been mentioned earlier, to determine each unitholder's
    share of income, gain, loss and deduction. We cannot
185
Table of Contents
assure you that those positions will yield a result that
    conforms to the requirements of the Internal Revenue Code,
    Treasury Regulations or administrative interpretations of the
    IRS. Neither we nor Latham & Watkins LLP can assure
    prospective unitholders that the IRS will not successfully
    contend in court that those positions are impermissible. Any
    challenge by the IRS could negatively affect the value of the
    units.
The IRS may audit our federal income tax information returns.
    Adjustments resulting from an IRS audit may require each
    unitholder to adjust a prior year's tax liability, and
    possibly may result in an audit of his return. Any audit of a
    unitholder's return could result in adjustments not related
    to our returns as well as those related to our returns.
Partnerships generally are treated as separate entities for
    purposes of federal tax audits, judicial review of
    administrative adjustments by the IRS and tax settlement
    proceedings. The tax treatment of partnership items of income,
    gain, loss and deduction are determined in a partnership
    proceeding rather than in separate proceedings with the
    partners. The Internal Revenue Code requires that one partner be
    designated as the "Tax Matters Partner" for these
    purposes. Our partnership agreement names Oxford Resources GP,
    LLC as our Tax Matters Partner.
The Tax Matters Partner has made and will make some elections on
    our behalf and on behalf of unitholders. In addition, the Tax
    Matters Partner can extend the statute of limitations for
    assessment of tax deficiencies against unitholders for items in
    our returns. The Tax Matters Partner may bind a unitholder with
    less than a 1% profits interest in us to a settlement with the
    IRS unless that unitholder elects, by filing a statement with
    the IRS, not to give that authority to the Tax Matters Partner.
    The Tax Matters Partner may seek judicial review, by which all
    the unitholders are bound, of a final partnership administrative
    adjustment and, if the Tax Matters Partner fails to seek
    judicial review, judicial review may be sought by any unitholder
    having at least a 1% interest in profits or by any group of
    unitholders having in the aggregate at least a 5% interest in
    profits. However, only one action for judicial review will go
    forward, and each unitholder with an interest in the outcome may
    participate.
A unitholder must file a statement with the IRS identifying the
    treatment of any item on his federal income tax return that is
    not consistent with the treatment of the item on our return.
    Intentional or negligent disregard of this consistency
    requirement may subject a unitholder to substantial penalties.
Nominee Reporting.
Persons who hold an
    interest in us as a nominee for another person are required to
    furnish to us:
•
the name, address and taxpayer identification number of the
    beneficial owner and the nominee;
•
whether the beneficial owner is:
•
a person that is not a U.S. person;
•
a foreign government, an international organization or any
    wholly owned agency or instrumentality of either of the
    foregoing; or
•
a tax-exempt entity;
•
the amount and description of units held, acquired or
    transferred for the beneficial owner; and
•
specific information including the dates of acquisitions and
    transfers, means of acquisitions and transfers, and acquisition
    cost for purchases, as well as the amount of net proceeds from
    sales.
Brokers and financial institutions are required to furnish
    additional information, including whether they are
    U.S. persons and specific information on units they
    acquire, hold or transfer for their own account. A penalty of
    $50 per failure, up to a maximum of $100,000 per calendar year,
    is imposed by the Internal Revenue Code for failure to report
    that information to us. The nominee is required to supply the
    beneficial owner of the units with the information furnished to
    us.
Accuracy-Related Penalties.
An additional tax
    equal to 20% of the amount of any portion of an underpayment of
    tax that is attributable to one or more specified causes,
    including negligence or disregard of rules or regulations,
    substantial understatements of income tax and substantial
    valuation misstatements, is
186
Table of Contents
imposed by the Internal Revenue Code. No penalty will be
    imposed, however, for any portion of an underpayment if it is
    shown that there was a reasonable cause for that portion and
    that the taxpayer acted in good faith regarding that portion.
For individuals, a substantial understatement of income tax in
    any taxable year exists if the amount of the understatement
    exceeds the greater of 10% of the tax required to be shown on
    the return for the taxable year or $5,000 ($10,000 for most
    corporations). The amount of any understatement subject to
    penalty generally is reduced if any portion is attributable to a
    position adopted on the return:
•
for which there is, or was, "substantial
    authority"; or
•
as to which there is a reasonable basis and the pertinent facts
    of that position are disclosed on the return.
If any item of income, gain, loss or deduction included in the
    distributive shares of unitholders might result in that kind of
    an "understatement" of income for which no
    "substantial authority" exists, we must disclose the
    pertinent facts on our return. In addition, we will make a
    reasonable effort to furnish sufficient information for
    unitholders to make adequate disclosure on their returns and to
    take other actions as may be appropriate to permit unitholders
    to avoid liability for this penalty. More stringent rules apply
    to "tax shelters," which we do not believe includes
    us, or any of our investments, plans or arrangements.
A substantial valuation misstatement exists if (a) the
    value of any property, or the adjusted basis of any property,
    claimed on a tax return is 150% or more of the amount determined
    to be the correct amount of the valuation or adjusted basis,
    (b) the price for any property or services (or for the use
    of property) claimed on any such return with respect to any
    transaction between persons described in Internal Revenue Code
    Section 482 is 200% or more (or 50% or less) of the amount
    determined under Section 482 to be the correct amount of
    such price, or (c) the net Internal Revenue Code
    Section 482 transfer price adjustment for the taxable year
    exceeds the lesser of $5 million or 10% of the
    taxpayer's gross receipts.
No penalty is imposed unless the portion of the underpayment
    attributable to a substantial valuation misstatement exceeds
    $5,000 ($10,000 for most corporations). If the valuation claimed
    on a return is 200% or more than the correct valuation, the
    penalty imposed increases to 40%. We do not anticipate making
    any valuation misstatements.
Reportable Transactions.
If we were to engage
    in a "reportable transaction," we (and possibly you
    and others) would be required to make a detailed disclosure of
    the transaction to the IRS. A transaction may be a reportable
    transaction based upon any of several factors, including the
    fact that it is a type of tax avoidance transaction publicly
    identified by the IRS as a "listed transaction" or
    that it produces certain kinds of losses for partnerships,
    individuals, S corporations, and trusts in excess of
    $2 million in any single year, or $4 million in any
    combination of 6 successive tax years. Our participation in a
    reportable transaction could increase the likelihood that our
    federal income tax information return (and possibly your tax
    return) would be audited by the IRS. Please read
    "— Information Returns and Audit Procedures."
Moreover, if we were to participate in a reportable transaction
    with a significant purpose to avoid or evade tax, or in any
    listed transaction, you may be subject to the following
    provisions of the American Jobs Creation Act of 2004:
•
accuracy-related penalties with a broader scope, significantly
    narrower exceptions, and potentially greater amounts than
    described above at "— Accuracy-Related
    Penalties";
•
for those persons otherwise entitled to deduct interest on
    federal tax deficiencies, nondeductibility of interest on any
    resulting tax liability; and
•
in the case of a listed transaction, an extended statute of
    limitations.
We do not expect to engage in any "reportable
    transactions."
187
Table of Contents
Recent
    Legislative Developments
Current law may change so as to cause us to be treated as a
    corporation for federal income tax purposes or otherwise subject
    us to entity-level taxation. For example, members of Congress
    have recently considered and are considering substantive changes
    to the existing federal income tax laws that could affect
    certain publicly traded partnerships. As previously and
    currently proposed, we do not believe any such legislation would
    affect our tax treatment as a partnership. However, the proposed
    legislation could be modified in a way that could affect us. We
    are unable to predict whether any of these changes, or other
    proposals, will ultimately be enacted. Any such changes could
    negatively impact the value of an investment in our units.
On February 1, 2010, the White House released President
    Obama's budget proposal for the fiscal year 2011 (the
    "Budget Proposal"). Among the changes contained in the
    Budget Proposal is the elimination of certain key
    U.S. federal income tax preferences currently available to
    coal exploration and development. The Budget Proposal would
    (i) eliminate current deductions and the
60-month
amortization for exploration and development costs relating to
    coal and other hard mineral fossil fuels, (ii) repeal the
    percentage depletion allowance with respect to coal properties,
    (iii) repeal capital gains treatment of coal and lignite
    royalties, and (iv) exclude from the definition of domestic
    production gross receipts all gross receipts derived from the
    sale, exchange, or other disposition of coal, other hard mineral
    fossil fuels, or primary products thereof.
Legislation has been introduced in the Senate and includes many
    of the proposals outlined in the Budget Proposal. It is unclear
    whether any such changes will actually be enacted or, if
    enacted, how soon any such changes could become effective. The
    passage of any legislation as a result of the Budget Proposal or
    any other similar change in U.S. federal income tax law
    could affect certain tax deductions that are currently available
    with respect to coal exploration and development and could
    negatively impact the value of an investment in our units.
State,
    Local, Foreign and Other Tax Considerations
In addition to federal income taxes, you likely will be subject
    to other taxes, such as state, local and foreign income taxes,
    unincorporated business taxes, and estate, inheritance or
    intangible taxes that may be imposed by the various
    jurisdictions in which we do business or own property or in
    which you are a resident. Although an analysis of those various
    taxes is not presented here, each prospective unitholder should
    consider their potential impact on his investment in us. We will
    initially own property or do business in Illinois, Indiana,
    Kentucky, Ohio, Pennsylvania and West Virginia. Each of these
    states imposes a personal income tax on individuals. Most of
    these states also impose an income tax on corporations and other
    entities. We may also own property or do business in other
    jurisdictions in the future. Although you may not be required to
    file a return and pay taxes in some jurisdictions because your
    income from that jurisdiction falls below the filing and payment
    requirement, you will be required to file income tax returns and
    to pay income taxes in many of these jurisdictions in which we
    do business or own property and may be subject to penalties for
    failure to comply with those requirements. In some
    jurisdictions, tax losses may not produce a tax benefit in the
    year incurred and may not be available to offset income in
    subsequent taxable years. Some of the jurisdictions may require
    us, or we may elect, to withhold a percentage of income from
    amounts to be distributed to a unitholder who is not a resident
    of the jurisdiction. Withholding, the amount of which may be
    greater or less than a particular unitholder's income tax
    liability to the jurisdiction, generally does not relieve a
    nonresident unitholder from the obligation to file an income tax
    return. Amounts withheld will be treated as if distributed to
    unitholders for purposes of determining the amounts distributed
    by us. Please read "— Tax Consequences of Unit
    Ownership — Entity-Level Collections." Based
    on current law and our estimate of our future operations, our
    general partner anticipates that any amounts required to be
    withheld will not be material.
It is the responsibility of each unitholder to investigate
    the legal and tax consequences, under the laws of pertinent
    jurisdictions, of his investment in us. Accordingly, each
    prospective unitholder is urged to consult, and depend upon, his
    tax counsel or other advisor with regard to those matters.
    Further, it is the responsibility of each unitholder to file all
    state, local and foreign, as well as U.S. federal tax
    returns, that may be required of him. Latham & Watkins
    LLP has not rendered an opinion on the state, local or foreign
    tax consequences of an investment in us.
188
Table of Contents
INVESTMENT
    IN OXFORD RESOURCE PARTNERS, LP BY EMPLOYEE BENEFIT
    PLANS
An investment in us by an employee benefit plan is subject to
    additional considerations because the investments of these plans
    are subject to the fiduciary responsibility and prohibited
    transaction provisions of ERISA and the restrictions imposed by
    Section 4975 of the Internal Revenue Code and provisions
    under any federal, state, local,
non-U.S. or
other laws or regulations that are similar to such provisions of
    the Internal Revenue Code or ERISA (collectively, "Similar
    Laws"). For these purposes the term "employee benefit
    plan" includes, but is not limited to, qualified pension,
    profit-sharing and stock bonus plans, Keogh plans, simplified
    employee pension plans and tax deferred annuities or IRAs or
    annuities established or maintained by an employer or employee
    organization, and entities whose underlying assets are
    considered to include "plan assets" of such plans,
    accounts and arrangements. Among other things, consideration
    should be given to:
•
whether the investment is prudent under
    Section 404(a)(1)(B) of ERISA and any other applicable
    Similar Laws;
•
whether in making the investment, the plan will satisfy the
    diversification requirements of Section 404(a)(1)(C) of
    ERISA and any other applicable Similar Laws;
•
whether the investment will result in recognition of unrelated
    business taxable income by the plan and, if so, the potential
    after-tax investment return. Please read "Material Federal
    Income Tax Consequences — Tax-Exempt Organizations and
    Other Investors;" and
•
whether making such an investment will comply with the
    delegation of control and prohibited transaction provisions of
    ERISA, the Internal Revenue Code and any other applicable
    Similar Laws.
The person with investment discretion with respect to the assets
    of an employee benefit plan, often called a fiduciary, should
    determine whether an investment in us is authorized by the
    appropriate governing instrument and is a proper investment for
    the plan.
Section 406 of ERISA and Section 4975 of the Internal
    Revenue Code prohibit employee benefit plans, and IRAs that are
    not considered part of an employee benefit plan, from engaging
    in specified transactions involving "plan assets" with
    parties that, with respect to the plan, are "parties in
    interest" under ERISA or "disqualified persons"
    under the Internal Revenue Code unless an exemption is
    available. A party in interest or disqualified person who
    engages in a non-exempt prohibited transaction may be subject to
    excise taxes and other penalties and liabilities under ERISA and
    the Internal Revenue Code. In addition, the fiduciary of the
    ERISA plan that engaged in such a non-exempt prohibited
    transaction may be subject to penalties and liabilities under
    ERISA and the Internal Revenue Code.
In addition to considering whether the purchase of common units
    is a prohibited transaction, a fiduciary should consider whether
    the plan will, by investing in us, be deemed to own an undivided
    interest in our assets, with the result that our general partner
    would also be a fiduciary of such plan and our operations would
    be subject to the regulatory restrictions of ERISA, including
    its prohibited transaction rules, as well as the prohibited
    transaction rules of the Internal Revenue Code, ERISA and any
    other applicable Similar Laws.
The Department of Labor regulations and Section 3(42) of
    ERISA provide guidance with respect to whether, in certain
    circumstances, the assets of an entity in which employee benefit
    plans acquire equity interests would be deemed "plan
    assets." Under these rules, an entity's assets would
    not be considered to be "plan assets" if, among other
    things:
(a) the equity interests acquired by the employee benefit
    plan are publicly offered securities — i.e., the
    equity interests are widely held by 100 or more investors
    independent of the issuer and each other, are freely
    transferable and are registered under certain provisions of the
    federal securities laws;
(b) the entity is an "operating
    company," — i.e., it is primarily engaged in the
    production or sale of a product or service, other than the
    investment of capital, either directly or through a
    majority-owned subsidiary or subsidiaries; or
189
Table of Contents
(c) there is no significant investment by benefit plan
    investors, which is defined to mean that less than 25% of the
    value of each class of equity interest, disregarding any such
    interests held by our general partner, its affiliates and some
    other persons, is held generally by the employee benefit plans
    referred to above that are subject to ERISA and IRAs and other
    similar vehicles that are subject to Section 4975 of the
    Internal Revenue Code.
Our assets should not be considered "plan assets"
    under these regulations because it is expected that the
    investment will satisfy the requirements in (a) and
    (b) above.
In light of the serious penalties imposed on persons who engage
    in prohibited transactions or other violations, plan fiduciaries
    contemplating a purchase of common units should consult with
    their own counsel regarding the consequences under ERISA, the
    Internal Revenue Code and other Similar Laws.
190
Table of Contents
UNDERWRITING
Barclays Capital Inc. and Citigroup Global Markets Inc. are
    acting as representatives of the underwriters and as joint
    book-running managers of this offering. Under the terms of an
    underwriting agreement, which will be filed as an exhibit to the
    registration statement relating to this prospectus, each of the
    underwriters named below has severally agreed to purchase from
    us the respective number of common units shown opposite its name
    below:
Number of
Underwriters
Common Units
Barclays Capital Inc.
Citigroup Global Markets Inc.
Total
The underwriting agreement provides that the underwriters'
    obligation to purchase the common units depends on the
    satisfaction of the conditions contained in the underwriting
    agreement including:
•
the obligation to purchase all of the common units offered
    hereby (other than those common units covered by their option to
    purchase additional common units as described below), if any of
    the common units are purchased;
•
the representations and warranties made by us to the
    underwriters are true;
•
there is no material change in our business or the financial
    markets; and
•
we deliver customary closing documents to the underwriters.
Commissions
    and Expenses
The following table summarizes the underwriting discounts and
    commissions we will pay to the underwriters. These amounts are
    shown assuming both no exercise and full exercise of the
    underwriters' option to purchase additional common units.
    The underwriting fee is the difference between the initial price
    to the public and the amount the underwriters pay to us for the
    common units.
No Exercise
Full Exercise
Per Common Unit
$
$
Total
$
$
The representatives of the underwriters have advised us that the
    underwriters propose to offer the common units directly to the
    public at the public offering price on the cover of this
    prospectus and to selected dealers, which may include the
    underwriters, at such offering price less a selling concession
    not in excess of $      per common
    unit. After the offering, the representatives may change the
    offering price and other selling terms.
The expenses of the offering that are payable by us are
    estimated to be $      (excluding
    underwriting discounts and commissions).
Option to
    Purchase Additional Common Units
We have granted the underwriters an option exercisable for
    30 days after the date of the underwriting agreement, to
    purchase, from time to time, in whole or in part, up to an
    aggregate
    of          additional
    common units at the public offering price less underwriting
    discounts and commissions. This option may be exercised if the
    underwriters sell more
    than          common
    units in connection with this offering. To the extent that this
    option is exercised, each underwriter will be obligated, subject
    to certain conditions, to purchase its pro rata portion of these
    additional common units based on the underwriter's
    underwriting commitment in the offering as indicated in the
    table at the beginning of this Underwriting section.
191
Table of Contents
Lock-Up
Agreements
We, our subsidiaries, our general partner and its affiliates,
    including C&T Coal and AIM Oxford and the directors and
    executive officers of our general partner, have agreed that
    without the prior written consent of Barclays Capital Inc., we
    and they will not directly or indirectly, (1) offer for
    sale, sell, pledge, or otherwise dispose of (or enter into any
    transaction or device that is designed to, or could be expected
    to, result in the disposition by any person at any time in the
    future of) any our common units (including, without limitation,
    common units that may be deemed to be beneficially owned by us
    or them in accordance with the rules and regulations of the
    Securities and Exchange Commission and common units that may be
    issued upon exercise of any options or warrants) or securities
    convertible into or exercisable or exchangeable for common
    units, (2) enter into any swap or other derivatives
    transaction that transfers to another, in whole or in part, any
    of the economic consequences of ownership of the common units,
    (3) make any demand for or exercise any right or file or
    cause to be filed a registration statement, including any
    amendments thereto, with respect to the registration of any
    common units or securities convertible, exercisable or
    exchangeable into common units or any of our other securities,
    or (4) publicly disclose the intention to do any of the
    foregoing for a period of 180 days after the date of this
    prospectus.
The
180-day
restricted period described in the preceding paragraph will be
    extended if:
•
during the last 17 days of the
180-day
restricted period we issue an earnings release or material news
    or a material event relating to us occurs; or
•
prior to the expiration of the
180-day
restricted period, we announce that we will release earnings
    results during the
16-day
period beginning on the last day of the
180-day
period, in which case the restrictions described in the
    preceding paragraph will continue to apply until the expiration
    of the
18-day
period beginning on the issuance of the earnings release or the
    announcement of the material news or occurrence of material
    event unless such extension is waived in writing by Barclays
    Capital Inc.
Barclays Capital Inc., in its sole discretion, may release the
    common units and other securities subject to the
lock-up
agreements described above in whole or in part at any time with
    or without notice. When determining whether or not to release
    common units and other securities from
lock-up
agreements, Barclays Capital Inc. will consider, among other
    factors, the holder's reasons for requesting the release,
    the number of common units and other securities for which the
    release is being requested and market conditions at the time.
As described below under "— Directed Unit
    Program," any participants in the Directed Unit Program
    will be subject to a
180-day
lock
    up with respect to any common units sold to them pursuant to
    that program. This lock up will have similar restrictions and an
    identical extension provision as the
lock-up
agreement described above. Any common units sold in the Directed
    Unit Program to our general partner's directors or officers
    will be subject to the
lock-up
agreement described above.
Offering
    Price Determination
Prior to this offering, there has been no public market for our
    common units. The initial public offering price will be
    negotiated between the representatives and us. In determining
    the initial public offering price of our common units, the
    representatives will consider:
•
the history and prospects for the industry in which we compete;
•
our financial information;
•
the ability of our management and our business potential and
    earning prospects;
•
the prevailing securities markets at the time of this
    offering; and
•
the recent market prices of, and the demand for, publicly traded
    common units of generally comparable companies.
192
Table of Contents
Indemnification
We have agreed to indemnify the underwriters against certain
    liabilities, including liabilities under the Securities Act and
    liabilities incurred in connection with the Directed Unit
    Program referred to below, and to contribute to payments that
    the underwriters may be required to make for these liabilities.
Directed
    Unit Program
At our request, the underwriters have established a Directed
    Unit Program under which they have reserved for sale at the
    initial public offering price up
    to          
    common units offered hereby for officers, directors, employees
    and certain other persons associated with us. The number of
    common units available for sale to the general public will be
    reduced by the number of directed common units purchased by
    participants in the program. Any directed common units not so
    purchased will be offered by the underwriters to the general
    public on the same basis as the other common units offered
    hereby. Any participants in this program will be prohibited from
    selling, pledging or assigning any common units sold to them
    pursuant to this program for a period of 180 days after the
    date of this prospectus. This
180-day
lock
    up period will be extended with respect to our issuance of an
    earnings release or if a material news or a material event
    relating to us occurs, in the same manner as described above
    under
"— Lock-Up
Agreements."
Stabilization,
    Short Positions and Penalty Bids
The representatives may engage in stabilizing transactions,
    short sales and purchases to cover positions created by short
    sales, and penalty bids or purchases for the purpose of pegging,
    fixing or maintaining the price of the common units, in
    accordance with Regulation M under the Exchange Act:
•
Stabilizing transactions permit bids to purchase the underlying
    security so long as the stabilizing bids do not exceed a
    specified maximum.
•
A short position involves a sale by the underwriters of common
    units in excess of the number of common units the underwriters
    are obligated to purchase in the offering, which creates the
    syndicate short position. This short position may be either a
    covered short position or a naked short position. In a covered
    short position, the number of common units involved in the sales
    made by the underwriters in excess of the number of common units
    they are obligated to purchase is not greater than the number of
    common units that they may purchase by exercising their option
    to purchase additional common units. In a naked short position,
    the number of common units involved is greater than the number
    of common units in their option to purchase additional common
    units. The underwriters may close out any short position by
    either exercising their option to purchase additional common
    units
and/or
purchasing common units in the open market. In determining the
    source of common units to close out the short position, the
    underwriters will consider, among other things, the price of
    common units available for purchase in the open market as
    compared to the price at which they may purchase common units
    through their option to purchase additional common units. A
    naked short position is more likely to be created if the
    underwriters are concerned that there could be downward pressure
    on the price of the common units in the open market after
    pricing that could adversely affect investors who purchase in
    the offering.
•
Syndicate covering transactions involve purchases of the common
    units in the open market after the distribution has been
    completed in order to cover syndicate short positions.
•
Penalty bids permit the representatives to reclaim a selling
    concession from a syndicate member when the common units
    originally sold by the syndicate member are purchased in a
    stabilizing or syndicate covering transaction to cover syndicate
    short positions.
These stabilizing transactions, syndicate covering transactions
    and penalty bids may have the effect of raising or maintaining
    the market price of our common units or preventing or retarding
    a decline in the market price of the common units. As a result,
    the price of the common units may be higher than the price that
    might otherwise exist in the open market. These transactions may
    be effected on The New York Stock Exchange or otherwise and, if
    commenced, may be discontinued at any time.
193
Table of Contents
Neither we nor any of the underwriters make any representation
    or prediction as to the direction or magnitude of any effect
    that the transactions described above may have on the price of
    the common units. In addition, neither we nor any of the
    underwriters make any representation that the representatives
    will engage in these stabilizing transactions or that any
    transaction, once commenced, will not be discontinued without
    notice.
Electronic
    Distribution
A prospectus in electronic format may be made available on the
    Internet sites or through other online services maintained by
    one or more of the underwriters
and/or
selling group members participating in this offering, or by
    their affiliates. In those cases, prospective investors may view
    offering terms online and, depending upon the particular
    underwriter or selling group member, prospective investors may
    be allowed to place orders online. The underwriters may agree
    with us to allocate a specific number of common units for sale
    to online brokerage account holders. Any such allocation for
    online distributions will be made by the representatives on the
    same basis as other allocations.
Other than the prospectus in electronic format, the information
    on any underwriter's or selling group member's web
    site and any information contained in any other web site
    maintained by an underwriter or selling group member is not part
    of the prospectus or the registration statement of which this
    prospectus forms a part, has not been approved
and/or
endorsed by us or any underwriter or selling group member in its
    capacity as underwriter or selling group member and should not
    be relied upon by investors.
New York
    Stock Exchange
We intend to apply to list our common units on the New York
    Stock Exchange under the symbol "OXF." The
    underwriters have undertaken to sell the minimum number of
    common units to the minimum number of beneficial owners
    necessary to meet the New York Stock Exchange distribution
    requirements for trading.
Discretionary
    Sales
The underwriters have informed us that they do not intend to
    confirm sales to discretionary accounts that exceed 5% of the
    total number of common units offered by them.
Stamp
    Taxes
If you purchase common units offered by this prospectus, you may
    be required to pay stamp taxes and other charges under the laws
    and practices of the country of purchase, in addition to the
    offering price listed on the cover page of this prospectus.
Relationships/FINRA
    Conduct Rules
An affiliate of Citigroup Global Markets Inc. has performed
    commercial banking services for us for which it has received
    customary fees and expenses. The underwriters and their
    affiliates may in the future perform investment banking,
    commercial banking and advisory services for us from time to
    time for which they may in the future receive customary fees and
    expenses. An affiliate of Citigroup Global Markets Inc. is a
    lender under our new credit facility and our existing credit
    facility and will receive a portion of the net proceeds from
    this offering pursuant to our repayment of the outstanding
    balance under our existing credit facility.
Because the Financial Industry Regulatory Authority, Inc., or
    FINRA, views the common units offered hereby as interests in a
    direct participation program, there is no conflict of interest
    between us and the underwriters under Rule 2720 of the
    National Association of Securities Dealers, Inc., or NASD,
    Conduct Rules and the offering is being made in compliance with
    Rule 2310 of the FINRA Rules. Investor suitability with
    respect to the common units should be judged similarly to the
    suitability with respect to other securities that are listed for
    trading on a national securities exchange.
194
Table of Contents
Selling
    Restrictions
Public
    Offer Selling Restrictions Under the Prospectus
    Directive
In relation to each member state of the European Economic Area
    that has implemented the Prospectus Directive (each, a relevant
    member state), with effect from and including the date on which
    the Prospectus Directive is implemented in that relevant member
    state (the relevant implementation date), an offer of securities
    described in this prospectus may not be made to the public in
    that relevant member state other than:
•
to any legal entity that is authorized or regulated to operate
    in the financial markets or, if not so authorized or regulated,
    whose corporate purpose is solely to invest in securities;
•
to any legal entity that has two or more of (1) an average
    of at least 250 employees during the last financial year;
    (2) a total balance sheet of more than €43,000,000 and
    (3) an annual net turnover of more than €50,000,000,
    as shown in its last annual or consolidated accounts;
•
to fewer than 100 natural or legal persons (other than qualified
    investors as defined in the Prospectus Directive) subject to
    obtaining the prior consent of the representatives; or
•
in any other circumstances that do not require the publication
    of a prospectus pursuant to Article 3 of the Prospectus
    Directive,
provided that no such offer of securities shall require us or
    any underwriter to publish a prospectus pursuant to
    Article 3 of the Prospectus Directive.
For purposes of this provision, the expression an "offer of
    securities to the public" in any relevant member state
    means the communication in any form and by any means of
    sufficient information on the terms of the offer and the
    securities to be offered so as to enable an investor to decide
    to purchase or subscribe for the securities, as the expression
    may be varied in that member state by any measure implementing
    the Prospectus Directive in that member state, and the
    expression "Prospectus Directive" means Directive
    2003/71/EC and includes any relevant implementing measure in
    each relevant member state.
We have not authorized and do not authorize the making of any
    offer of securities through any financial intermediary on their
    behalf, other than offers made by the underwriters with a view
    to the final placement of the securities as contemplated in this
    prospectus. Accordingly, no purchaser of the securities, other
    than the underwriters, is authorized to make any further offer
    of the securities on behalf of us or the underwriters.
Selling
    Restrictions Addressing Additional United Kingdom Securities
    Laws
This prospectus is only being distributed to, and is only
    directed at, persons in the United Kingdom that are qualified
    investors within the meaning of Article 2(1)(e) of the
    Prospectus Directive ("Qualified Investors") that are
    also (i) investment professionals falling within
    Article 19(5) of the Financial Services and Markets Act
    2000 (Financial Promotion) Order 2005 (the "Order") or
    (ii) high net worth entities, and other persons to whom it
    may lawfully be communicated, falling within
    Article 49(2)(a) to (d) of the Order (all such persons
    together being referred to as "relevant persons").
    This prospectus and its contents are confidential and should not
    be distributed, published or reproduced (in whole or in part) or
    disclosed by recipients to any other persons in the United
    Kingdom. Any person in the United Kingdom that is not a relevant
    person should not act or rely on this document or any of its
    contents.
Notice
    to Prospective Investors in Switzerland
This document, as well as any other material relating to the
    common units that are the subject of the offering contemplated
    by this prospectus, do not constitute an issue prospectus
    pursuant to Article 652a
and/or
1156
    of the Swiss Code of Obligations. The common units will not be
    listed on the SIX Swiss Exchange and, therefore, the documents
    relating to the common units, including, but not limited to,
    this document, do not claim to comply with the disclosure
    standards of the listing rules of SIX Swiss Exchange and
    corresponding prospectus schemes annexed to the listing rules of
    the SIX Swiss Exchange. The common units are being offered in
    Switzerland by way of a private placement, i.e., to a small
    number of selected investors only,
195
Table of Contents
without any public offer and only to investors who do not
    purchase the common units with the intention to distribute them
    to the public. The investors will be individually approached by
    the issuer from time to time. This document, as well as any
    other material relating to the common units, is personal and
    confidential and do not constitute an offer to any other person.
    This document may only be used by those investors to whom it has
    been handed out in connection with the offering described herein
    and may neither directly nor indirectly be distributed or made
    available to other persons without express consent of the
    issuer. It may not be used in connection with any other offer
    and shall in particular not be copied
and/or
distributed to the public in (or from) Switzerland.
196
Table of Contents
VALIDITY
    OF THE COMMON UNITS
The validity of the common units offered hereby will be passed
    upon for us by Latham & Watkins LLP, Houston, Texas.
    Certain legal matters in connection with the common units
    offered hereby will be passed upon for the underwriters by
    Andrews Kurth LLP, Houston, Texas.
EXPERTS
The consolidated financial statements of Oxford Resource
    Partners, LP and subsidiaries for the years ended
    December 31, 2009 and 2008, the period from August 24,
    2007 to December 31, 2007 and of Oxford Mining Company and
    subsidiaries (the predecessor) for the period from
    January 1, 2007 to August 23, 2007 have been included
    in this prospectus in reliance upon the report of Grant Thornton
    LLP an independent registered public accounting firm, appearing
    elsewhere herein and upon the authority of said firm as experts
    in accounting and auditing in giving said reports.
The combined financial statements for the carved-out surface
    mining operations of Phoenix Coal Inc. for the nine months ended
    September 30, 2009 and the years ended December 31,
    2008 and 2007 included in this prospectus have been audited by
    Ernst & Young LLP an independent registered public
    accounting firm, as set forth in their report thereon appearing
    elsewhere herein, and are included in reliance upon such report
    given on the authority of said firm as experts in accounting and
    auditing.
The information included in this prospectus relating to the
    estimates of our proven and probable reserves associated with
    our surface mining operations in Ohio is derived from our
    internal estimates, which estimates were audited by John T. Boyd
    Company, an independent mining and geological consulting firm.
    The information included in this prospectus relating to the
    estimates of our proven and probable reserves associated with
    our surface mining operations in the Illinois Basin and our
    proven and probable underground coal reserves is derived from
    reserve reports prepared by John T. Boyd Company. This
    information is included in this prospectus upon the authority of
    said firm as an expert.
WHERE YOU
    CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement on
Form S-1
regarding the common units. This prospectus does not contain all
    of the information found in the registration statement. For
    further information regarding us and the common units offered in
    this prospectus, you may desire to review the full registration
    statement, including the exhibits. The registration statement,
    including the exhibits, may be inspected and copied at the
    public reference facilities maintained by the SEC at
    100 F Street, N.E., Room 1580,
    Washington, D.C. 20549. Copies of this material can also be
    obtained upon written request from the Public Reference Section
    of the SEC at 100 F Street, N.E., Room 1580,
    Washington, D.C. 20549 at prescribed rates or from the
    SEC's web site on the Internet at
http://www.sec.gov.
Please call the SEC at
1-800-SEC-0330
for further information on public reference rooms.
As a result of the offering, we will file with or furnish to the
    SEC periodic reports and other information. These reports and
    other information may be inspected and copied at the public
    reference facilities maintained by the SEC or obtained from the
    SEC's website as provided above. Our website on the
    Internet will be located at
http://www.oxfordresources.com,
and we expect to make our periodic reports and other information
    filed with or furnished to the SEC available, free of charge,
    through our website, as soon as reasonably practicable after
    those reports and other information are electronically filed
    with or furnished to the SEC. Information on our website or any
    other website is not incorporated by reference into this
    prospectus and does not constitute a part of this prospectus.
We intend to furnish or make available to our unitholders annual
    reports containing our audited financial statements prepared in
    accordance with GAAP. Our annual report will contain a detailed
    statement of any transactions with our general partner or its
    affiliates, and of fees, commissions, compensation and other
    benefits paid, or accrued to our general partner or its
    affiliates for the fiscal year completed, showing the amount
    paid or accrued to each recipient and the services performed. We
    also intend to furnish or make
197
Table of Contents
available to our unitholders quarterly reports containing our
    unaudited interim financial information, including the
    information required by
Form 10-Q,
for the first three fiscal quarters of each fiscal year.
FORWARD-LOOKING
    STATEMENTS
Some of the information in this prospectus may contain
    forward-looking statements. These statements can be identified
    by the use of forward-looking terminology including
    "will," "may," "believe,"
    "expect," "anticipate,"
    "estimate," "continue," or other similar
    words. These statements discuss future expectations, contain
    projections of financial condition or of results of operations,
    or state other "forward-looking" information. These
    forward-looking statements involve risks and uncertainties. When
    considering these forward-looking statements, you should keep in
    mind the risk factors and other cautionary statements in this
    prospectus. The risk factors and other factors noted throughout
    this prospectus could cause our actual results to differ
    materially from those contained in any forward-looking statement.
198
Table of Contents
INDEX TO
    FINANCIAL STATEMENTS
Oxford Resource Partners, LP and
    Subsidiaries
Introduction
F-2
Unaudited Pro Forma Consolidated Balance Sheet as
    of December 31, 2009
F-4
Unaudited Pro Forma Consolidated Statement of
    Operations for the year ended December 31, 2009
F-5
Notes to Unaudited Pro Forma Consolidated
    Financial Statements
F-6
Report of Independent Registered Public Accounting Firm
F-8
Consolidated Balance Sheets as of December 31, 2009 and 2008
F-9
Consolidated Statements of Operations for the years ended
    December 31, 2009 and 2008 and the period from
    August 24, 2007 to December 31, 2007 and Predecessor
    Statement of Operations for the period from January 1, 2007
    to August 23, 2007
F-10
Consolidated Statements of Partners' Capital for the years
    ended December 31, 2009 and 2008 and the period from
    August 24, 2007 to December 31, 2007 and Predecessor
    Statement of Shareholders' Equity for the period from
    January 1, 2007 to August 23, 2007
F-11
Consolidated Statements of Cash Flows for the years ended
    December 31, 2009 and 2008 and the period from
    August 24, 2007 to December 31, 2007 and Predecessor
    Statement of Cash Flows for the period from January 1, 2007
    to August 23, 2007
F-12
Notes to Consolidated Financial Statements
F-13
Carved-Out Surface Mining Operations of Phoenix Coal Inc.
Report of Independent Auditors
F-37
Combined Balance Sheets as of September 30, 2009 and
    December 31, 2008
F-38
Combined Statements of Operations and Comprehensive Loss for the
    periods ended September 30, 2009 and December 31, 2008
    and 2007
F-39
Combined Statements of Group Equity for the periods ended
    September 30, 2009 and December 31, 2008 and 2007
F-40
Combined Statements of Cash Flows for the periods ended
    September 30, 2009 and December 31, 2008 and 2007
F-41
Notes to Combined Financial Statements
F-42
F-1
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
Introduction
Set forth below are the unaudited pro forma consolidated balance
    sheet of Oxford Resource Partners, LP as of December 31,
    2009 and the unaudited pro forma consolidated statement of
    operations of Oxford Resource Partners, LP for the year ended
    December 31, 2009. References to "we,"
    "us" and "our" mean Oxford Resource
    Partners, LP and its consolidated subsidiaries, unless the
    context requires otherwise.
Our unaudited pro forma consolidated balance sheet, which
    presents the pro forma effects of the transactions described
    below under "— Pro Forma Consolidated Balance
    Sheet" (the "Offering Transactions") as if such
    transactions occurred on December 31, 2009, has been
    derived from, and should be read in conjunction with, our
    audited historical financial statements included elsewhere in
    this prospectus. Our unaudited pro forma consolidated statement
    of operations, which presents the pro forma effects of the
    Offering Transactions and the Phoenix Coal acquisition described
    below under "— Pro Forma Consolidated Statement
    of Operations" as if such transactions occurred on
    January 1, 2009, has been derived from, and should be read
    in conjunction with, our audited historical financial statements
    included elsewhere in this prospectus and the audited combined
    statements of operations and comprehensive loss for the
    carved-out surface mining operations of Phoenix Coal Inc.
    included elsewhere in this prospectus. We have not made pro
    forma adjustments to our audited historical consolidated balance
    sheet as of December 31, 2009 for the Phoenix Coal
    acquisition because that acquisition occurred on
    September 30, 2009, and, therefore, the effects of that
    acquisition are already reflected in our audited historical
    consolidated balance sheet as of December 31, 2009.
Our unaudited pro forma consolidated financial statements are
    based on certain assumptions and do not purport to be indicative
    of the results that actually would have been achieved if the
    Offering Transactions and the Phoenix Coal acquisition, as
    applicable, had been completed on the dates set forth above.
    Moreover, they do not project our financial position or results
    of operations as of any future date or for any future period.
Pro Forma
    Consolidated Balance Sheet
Our unaudited pro forma consolidated balance sheet is derived
    from our audited historical consolidated balance sheet as of
    December 31, 2009. The "Adjustments for Offering
    Transactions" column in our unaudited pro forma
    consolidated balance sheet contains the adjustments that we
    believe are appropriate to give effect to the Offering
    Transactions that will occur in connection with our initial
    public offering (the "Offering") assuming a
    December 31, 2009 offering date. Please read
    "— Note 1. Pro Forma Consolidated Balance
    Sheet Adjustments." The Offering Transactions include:
•
our distribution of approximately
    $      million of cash and
    accounts receivable to Oxford Resources GP, LLC (our
    "General Partner"), C&T Coal, Inc.
    ("C&T Coal"), AIM Oxford Holdings, LLC ("AIM
    Oxford"), and the participants in our Long-Term Incentive
    Plan (our "LTIP") pro rata;
•
our entry into a new credit facility;
•
the conversion of our General Partner's 2.0% general
    partner interest in us, represented
    by          
    general partner units,
    into          
    general partner units representing a 2.0% general partner
    interest in us;
•
the conversion of all of our Class B common units held by
    C&T Coal, representing a     %
    limited partner interest in us, into:
    (i)           common
    units, representing a     % limited
    partner interest in us and
    (ii)           subordinated
    units, representing a     % limited
    partner interest in us;
•
the conversion of all of our Class B common units held by
    AIM Oxford, representing a     %
    limited partner interest in us, into:
    (i)           common
    units, representing a     % limited
    partner interest in us and
    (ii)          subordinated
    units, representing a     % limited
    partner interest in us;
F-2
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP
UNAUDITED
    PRO FORMA CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
•
the receipt by the participants in our LTIP of a distribution
    of          common
    units for each common unit they currently own, resulting in
    their ownership
    of          common
    units, representing an aggregate     %
    limited partner interest in us;
•
the issuance by us to the public
    of          
    common units, representing a     %
    limited partner interest in us;
•
the use of the net proceeds from the Offering to:
•
repay in full the outstanding balance under our existing credit
    facility;
•
distribute approximately
    $      million to C&T Coal in
    respect of its limited partner interest in us;
•
distribute approximately
    $      million to certain
    participants in the LTIP in respect of their limited partner
    interests in us; and
•
pay offering expenses of approximately
    $      million; and
•
the use of the net proceeds from borrowings under our new credit
    facility of approximately $      to
    distribute approximately
    $      million to AIM Oxford in
    respect of its limited partner interest in us and to pay fees
    and expenses associated with our new credit facility of
    approximately $      million.
Pro Forma
    Consolidated Statement of Operations
On September 30, 2009, we acquired 100% of the active
    surface mining coal operations of Phoenix Coal. Our unaudited
    pro forma consolidated statement of operations is derived from
    our audited historical consolidated statement of operations for
    the year ended December 31, 2009 and the audited combined
    statements of operations and comprehensive loss for the
carved-out
surface mining operations of Phoenix Coal Inc. for the
    nine-month period ended September 30, 2009.
The "Pro Forma Adjustments" column in our unaudited
    pro forma consolidated statement of operations contains the
    adjustments that we believe are appropriate to present the
    Phoenix Coal acquisition on a pro forma basis assuming a
    January 1, 2009 acquisition date. Please read
    "— Note 2. Pro Forma Consolidated Statement
    of Operations Adjustments." These adjustments include,
    among other things, the following:
•
increases in revenue as a result of the amortization of
    below-market coal sales contracts during the period from
    January 1, 2009 to September 30, 2009 (the "Stub
    Period");
•
adjustments in depreciation, depletion and amortization expense,
    or DD&A expense, over the Stub Period due to a new fair
    value basis of assets as a result of change in control
    accounting and our leasing of equipment from a third party that
    was previously owned by Phoenix Coal; and
•
various adjustments to apply our accounting policies to the
    Phoenix Coal financial statements during the Stub Period.
The "Adjustments for Offering Transactions" column in
    our unaudited pro forma consolidated statement of operations
    contains the adjustments that we believe are appropriate to give
    effect to the Offering Transactions that will occur in
    connection with the Offering assuming a January 1, 2009
    offering date. Please read "— Note 2. Pro
    Forma Consolidated Statement of Operations Adjustments." We
    have not made adjustments to give effect to the incremental
    selling, general and administrative expenses of approximately
    $3.0 million that we expect to incur as a result of being a
    publicly traded partnership.
F-3
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP
Unaudited Pro Forma Consolidated Balance Sheet
December 31, 2009
Adjustments for
Offering
Oxford Resource
Transactions
Pro Forma
Partners, LP
(Note 1)
As Adjusted
(in thousands)
ASSETS
Cash and cash equivalents
$
3,366
$
93,729
(a)
$
30,769
(3,000
)
(a)
(90,729
)
(a)
(3,366
)
(b)
150,000
(b)
(13,500
)
(b)
(105,731
)
(b)
Trade accounts receivable
24,403
(22,403
)
(b)
2,000
Inventory
8,801
—
8,801
Advance royalties
1,674
—
1,674
Prepaid expenses and other current assets
1,424
857
(a)
2,281
Total current assets
39,668
5,857
45,525
Property, plant and equipment, net
149,461
—
149,461
Advance royalties
7,438
—
7,438
Other long-term assets
6,796
2,143
(a)
7,302
(1,637
)
(c)
Total assets
$
203,363
$
6,363
$
209,726
LIABILITIES
Current portion of long-term debt
4,113
(846
)
(a)
3,267
Accounts payable
21,655
—
21,655
Asset retirement obligation — current portion
7,377
—
7,377
Deferred revenue — current portion
2,090
—
2,090
Accrued taxes other than income taxes
1,464
—
1,464
Accrued payroll and related expenses
2,045
—
2,045
Other current liabilities
5,714
—
5,714
Total current liabilities
44,458
(846
)
43,612
Long-term debt
91,598
(89,883
)
(a)
95,444
93,729
(a)
Asset retirement obligations
5,966
—
5,966
Other long-term liabilities
4,229
—
4,229
Total liabilities
$
146,251
$
3,000
$
149,251
Commitments and Contingencies
PARTNERS' CAPITAL
Limited Partners
Common unitholders
    (          units
    outstanding as of December 31, 2009)
53,960
(26,840
)
(b)
125,761
(102,030
)
(b)
136,500
(b)
(1,604
)
(c)
65,775
(b)
Subordinated unitholders
    (           units
    outstanding as of December 31, 2009)
—
(65,775
)
(b)
(65,775
)
General partner
    (          units
    outstanding as of December 31, 2009)
1,085
(2,630
)
(b)
(1,578
)
(33
)
(c)
Total Oxford Resource Partners, LP partners' capital
55,045
3,363
58,408
Noncontrolling interest
2,067
—
2,067
Total partners' capital
57,112
3,363
60,475
Total liabilities and partners' capital
$
203,363
$
6,363
$
209,726
See accompanying notes to unaudited pro forma consolidated
    financial statements.
F-4
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP
Unaudited Pro Forma Consolidated Statement of
    Operations
Year Ended December 31, 2009
Adjustments for
Pro Forma
Offering
Oxford Resource
Phoenix
Adjustments
Transactions
Pro Forma as
Partners, LP
Coal
(Note 2)
Pro Forma
(Note 2)
Adjusted
(in thousands)
Revenues
Coal sales
$
254,171
$
58,494
$
4,556
(d)
$
312,490
$
—
$
312,490
(4,731
)
(e)
Transportation revenue
32,490
—
4,731
(e)
37,221
—
37,221
Royalty and non-coal revenue
7,183
—
—
7,183
—
7,183
Total revenues
293,844
58,494
4,556
356,894
—
356,894
Costs and expenses
Cost of coal sales (excluding DD&A, shown separately)
170,698
54,531
1,464
(f)
213,446
—
213,446
(1,216
)
(g)
(15,031
)
(e)
3,000
(h)
Cost of purchased coal
19,487
—
10,305
(e)
29,792
—
29,792
Cost of transportation
32,490
—
4,731
(e)
37,221
—
37,221
Depreciation, depletion and amortization
25,902
5,800
(278
)
(i)
31,424
—
31,424
Selling, general and administrative expenses
13,242
6,948
5,852
(e)
26,042
(307
)
(l)
25,735
Phoenix Coal selling expense
—
5,852
(5,852
)
(e)
—
—
—
Sales contract termination cost
—
3,000
(3,000
)
(h)
—
—
—
Total costs and expenses
261,819
76,131
(25
)
337,925
(307
)
337,618
Income (loss) from operations
32,025
(17,637
)
4,581
18,969
307
19,276
Interest income
35
4
—
39
—
39
Interest expense
(6,484
)
(2,601
)
(156
)
(j)
(9,241
)
2,900
(m)
(6,341
)
Other income (expense)
—
(5
)
5
(e)
—
—
—
Gain from purchase of business
3,823
—
—
3,823
—
3,823
Taxes
—
(16
)
16
(k)
—
—
—
Net income (loss)
29,399
(20,255
)
4,446
13,590
3,207
16,797
Less: net income attributable to noncontrolling interest
(5,895
)
—
—
(5,895
)
—
(5,895
)
Net income (loss) attributable to Oxford Resource Partners,
    LP unitholders
$
23,504
$
(20,255
)
$
4,446
$
7,695
$
3,207
$
10,902
See accompanying notes to unaudited pro forma consolidated
    financial statements.
F-5
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP
Notes
    to Unaudited Pro Forma Consolidated Financial
    Statements
NOTE 1.
PRO FORMA
    CONSOLIDATED BALANCE SHEET ADJUSTMENTS
(a) Reflects adjustments relating to the repayment of our
    existing credit facility and the entry into our new credit
    facility based on an assumed December 31, 2009 transaction
    date for the Offering Transactions. These adjustments are based
    on the following assumptions:
•
the repayment of a total of $90.7 million in debt
    outstanding under our existing credit facility;
•
total borrowings of $93.7 million under our new credit
    facility; and
•
total fees relating to our new credit facility of
    $3.0 million, which amount will be capitalized.
(b) Reflects adjustments for the Offering Transactions not
    discussed in Note (a) above, based on an assumed
    December 31, 2009 transaction date for the Offering
    Transactions. These adjustments are based on the following
    assumptions:
•
the distribution of $3.4 million in cash and
    $22.4 million in accounts receivable to our General
    Partner, C&T Coal, AIM Oxford and the participants in our
    LTIP, pro rata;
•
gross proceeds of $150 million from the issuance and sale
    of          
    common units at an assumed initial offering price
    of          
    per unit (the midpoint of the range set forth on the cover page
    of this prospectus);
•
estimated underwriting fees and commissions and offering
    expenses of $13.5 million;
•
a total cash distribution of $105.7 million to our General
    Partner, C&T Coal, AIM Oxford and the participants in our
    LTIP, pro rata; and
•
replenishment of working capital with remaining cash proceeds of
    $30.8 million.
(c) Reflects adjustments to write off deferred financing
    costs of $1.6 million that relate to our existing credit
    facility.
NOTE 2.
PRO FORMA
    CONSOLIDATED STATEMENT OF OPERATIONS ADJUSTMENTS
(d) Reflects the benefit of amortization during the Stub
    Period of the below-market coal sales contracts that we acquired
    in the Phoenix Coal acquisition. The amount was calculated based
    on the amortization we recognized in the fourth quarter of 2009
    and the amount of coal shipped on these contracts during the
    Stub Period as compared to the fourth quarter of 2009.
(e) Reflects reclassifications to conform the statement of
    operations of Phoenix Coal to our basis of presentation.
(f) Reflects additional lease expense we would have
    incurred over the Stub Period as a result of our leasing, from a
    third party, equipment that was previously owned by Phoenix Coal.
(g) Reflects the application of our accounting policy with
    regard to the capitalization threshold for major repairs to
    equipment. Phoenix Coal had expensed $1.2 million of
    rebuilds of dozer undercarriages during the Stub Period. Our
    policy is to capitalize major rebuilds that extend the life of
    the asset and thus we have reduced cost of coal sales by
    $1.2 million.
(h) Reflects the reclassification of sales contract
    termination costs incurred by Phoenix Coal into cost of coal
    sales.
(i) Reflects the net effect of the elimination of DD&A
    expense attributable to the operations we purchased from Phoenix
    Coal and the addition of DD&A expense we would have
    incurred based on a
F-6
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP
Notes to
    Unaudited Pro Forma Consolidated Financial
    Statements — (Continued)
NOTE 2.
PRO FORMA
    CONSOLIDATED STATEMENT OF OPERATIONS
    ADJUSTMENTS — (Continued)
January 1, 2009 assumed acquisition date. Our net
    adjustment to DD&A expense is a decrease of
    $0.3 million and is attributable to the following:
•
a decrease in our depletion expense due to lower fair market
    values assigned to coal reserves as compared to Phoenix
    Coal's carrying value, partially offset by
•
an increase in our depreciation expense due to higher fair
    market values assigned to equipment purchased as compared to
    Phoenix Coal's carrying value.
(j) As a result of the Phoenix Coal acquisition, interest
    expense increased $0.2 million over the Stub Period. This
    increase would have been attributable to increased debt levels
    and higher interest rates applicable to our existing credit
    facility that we amended in connection with the acquisition. Our
    amortization of deferred financing expenses also increased over
    the Stub Period due to amendment fees paid to lenders as a
    result of the amendment to our existing credit facility. These
    items increased our interest expense by $2.8 million, which
    was partially offset by the elimination of the historical
    interest expense of Phoenix Coal of $2.6 million.
(k) Reflects the elimination of Phoenix Coal's income
    taxes that we would not have incurred because of our status as a
    partnership that does not pay federal income taxes.
(l) Reflects the elimination of advisory fees of
    $0.3 million paid to affiliates of AIM Oxford that would
    not have been paid if we were a publicly traded partnership.
(m) Reflects a decrease in interest expense of
    $2.9 million to reflect a lower effective interest rate
    associated with our new credit facility, partially offset by
    higher amortization of deferred financing cost associated with
    our new credit facility.
F-7
Table of Contents
Report of
    Independent Registered Public Accounting Firm
To the Board of Directors of Oxford Resources GP, LLC (which is
    the General Partner of Oxford Resource Partners, LP) and the
    General Partner and Limited Partners of Oxford Resource
    Partners, LP:
We have audited the accompanying consolidated balance sheets of
    Oxford Resource Partners, LP and subsidiaries (the
    "Partnership") as of December 31, 2009 and 2008,
    and the related consolidated statements of operations,
    partners' capital and shareholders' equity and cash
    flows of Oxford Resource Partners, LP and subsidiaries for the
    years ended December 31, 2009 and 2008 and the period from
    August 24, 2007 (inception) to December 31, 2007 and
    of Oxford Mining Company and subsidiaries (the
    "Predecessor") for the period from January 1,
    2007 through August 23, 2007. These financial statements
    are the responsibility of the Partnership's management. Our
    responsibility is to express an opinion on these financial
    statements based on our audits.
We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audit to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement. The Partnership is not required
    to have, nor were we engaged to perform an audit of its internal
    control over financial reporting. Our audit included
    consideration of internal control over financial reporting as a
    basis for designing audit procedures that are appropriate in the
    circumstances, but not for the purpose of expressing an opinion
    on the effectiveness of the Partnership's internal control
    over financial reporting. Accordingly, we express no such
    opinion. An audit also includes examining, on a test basis,
    evidence supporting the amounts and disclosures in the financial
    statements, and assessing the accounting principles used and
    significant estimates made by management, as well as evaluating
    the overall financial statement presentation. We believe that
    our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred
    to above present fairly, in all material respects, the financial
    position of Oxford Resource Partners, LP and subsidiaries as of
    December 31, 2009 and 2008, and the results of operations
    and cash flows of Oxford Resource Partners, LP and subsidiaries
    for the years ended December 31, 2009 and 2008, the period
    from August 24, 2007 (inception) to December 31, 2007
    and of the Predecessor for the period from January 1, 2007
    through August 23, 2007 in conformity with accounting
    principles generally accepted in the United States of America.
As discussed in Note 2, the Partnership changed its method
    of accounting and reporting for noncontrolling interests in
    subsidiaries in 2009 for all periods presented due to the
    adoption of Statement of Financial Accounting Standards
    No. 160,
Noncontrolling Interests in Consolidated
    Financial Statements
, codified in FASB ASC 810 —
    Consolidation.
/s/ GRANT THORNTON LLP
Cleveland, Ohio
March 24, 2010
F-8
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
CONSOLIDATED
    BALANCE SHEETS
(in
    thousands, except for unit information)
December 31,
December 31,
2009
2008
ASSETS
Cash and cash equivalents
$
3,366
$
15,179
Trade accounts receivable
24,403
21,528
Inventory
8,801
5,134
Advance royalties
1,674
1,509
Prepaid expenses and other current assets
1,424
787
Total current assets
39,668
44,137
Property, plant and equipment, net
149,461
112,446
Advance royalties
7,438
8,126
Other long-term assets
6,796
6,588
Total assets
$
203,363
$
171,297
LIABILITIES
Current portion of long-term debt
$
4,113
$
2,535
Accounts payable
21,655
22,654
Asset retirement obligation — current portion
7,377
4,749
Deferred revenue — current portion
2,090
13,250
Accrued taxes other than income taxes
1,464
1,117
Accrued payroll and related expenses
2,045
326
Other current liabilities
5,714
3,360
Total current liabilities
44,458
47,991
Long-term debt
91,598
81,442
Asset retirement obligations
5,966
4,543
Other long-term liabilities
4,229
2,000
Total liabilities
$
146,251
$
135,976
Commitments and Contingencies (Note 17)
PARTNERS' CAPITAL
Limited partners (6,570,369 and 5,889,484 units outstanding
    as of December 31, 2009 and 2008, respectively)
53,960
32,371
General partner (132,909 and 119,643 units outstanding as
    of December 31, 2009 and 2008, respectively)
1,085
653
Total Oxford Resource Partners, LP partners' capital
55,045
33,024
Noncontrolling interest
2,067
2,297
Total partners' capital
57,112
35,321
Total liabilities and partners' capital
$
203,363
$
171,297
See accompanying notes to consolidated financial statements.
F-9
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
CONSOLIDATED
    STATEMENTS OF OPERATIONS
(in
    thousands, except for unit information)
Oxford Mining
Oxford Resource Partners, LP
Company
(Successor)
(Predecessor)
Years Ended
Period from August 24
Period from January 1
December 31,
to December 31,
to August 23,
2009
2008
2007
2007
Revenues
Coal sales
$
254,171
$
193,699
$
61,324
$
96,799
Transportation revenue
32,490
31,839
10,204
18,083
Royalty and non-coal revenue
7,183
4,951
1,407
3,267
Total revenues
293,844
230,489
72,935
118,149
Costs and expenses
Cost of coal sales (excluding depreciation, depletion, and
    amortization, shown separately)
170,698
151,421
40,721
70,415
Cost of purchased coal
19,487
12,925
9,468
17,494
Cost of transportation
32,490
31,839
10,204
18,083
Depreciation, depletion, and amortization
25,902
16,660
4,926
9,025
Selling, general and administrative expenses
13,242
9,577
2,114
3,643
Total costs and expenses
261,819
222,422
67,433
118,660
Income (loss) from operations
32,025
8,067
5,502
(511
)
Interest income
35
62
55
26
Interest expense
(6,484
)
(7,720
)
(3,498
)
(2,386
)
Gain from purchase of business
3,823
—
—
—
Net income (loss)
29,399
409
2,059
(2,871
)
Less: net income attributable to noncontrolling interest
(5,895
)
(2,891
)
(537
)
(682
)
Net income (loss) attributable to Oxford Resource Partners,
    LP unitholders
$
23,504
$
(2,482
)
$
1,522
$
(3,553
)
Net income (loss) allocated to general partner
$
467
$
(50
)
$
30
Net income (loss) allocated to limited partners
$
23,037
$
(2,432
)
$
1,492
Basic earnings per limited partner unit
$
3.80
$
(0.44
)
$
0.30
Diluted earnings per limited partner unit
$
3.79
$
(0.44
)
$
0.30
Weighted average number of limited partner units outstanding
    basic
6,061,072
5,554,395
4,900,000
Weighted average number of limited partner units outstanding
    diluted
6,084,508
5,554,395
4,901,956
Distributions paid per limited partner unit
$
2.17
$
2.21
$
—
See accompanying notes to consolidated financial statements.
F-10
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF PARTNERS'
    CAPITAL AND SHAREHOLDERS' EQUITY
Years ended December 31, 2009 and 2008 and the periods from
    inception to December 31, 2007 and from January 1,
    2007 to August 23, 2007
(in thousands, except for unit information)
Capital in
Retained
Common Stock
Total
Common
Excess of
Earnings
In
Shareholders'
Noncontrolling
Total
Predecessor
Stock
Par Value
(Deficit)
Treasury
Equity
Interest
Equity
Balance at December 31, 2006
$
2
$
44
$
10,252
$
(2,077
)
$
8,221
$
—
$
8,221
Proceeds from the sale of minority interest
980
980
Net loss
(3,553
)
(3,553
)
682
(2,871
)
Shareholders' distributions
(16,339
)
(16,339
)
(343
)
(16,682
)
Balance at August 23, 2007
$
2
$
44
$
(9,640
)
$
(2,077
)
$
(11,671
)
$
1,319
$
(10,352
)
Limited
Limited
General
General
Total
Partner
Partners'
Partner
Partner's
Total
Noncontrolling
Partners'
Successor
Units
Capital
Units
Capital
Units
interest
Capital
Balance at August 24, 2007
—
$
—
—
$
—
—
$
—
$
—
Partners' contributions
4,900,000
54,880
100,000
1,120
5,000,000
1,319
57,319
Predecessor basis adjustment
(20,465
)
(417
)
(20,882
)
Net income
1,492
30
537
2,059
Unit-based compensation
25
25
Balance at December 31, 2007
4,900,000
$
35,932
100,000
$
733
5,000,000
$
1,856
$
38,521
Net income (loss)
(2,432
)
(50
)
2,891
409
Partners' contributions
962,500
10,780
19,643
220
982,143
11,000
Partners' distributions
(12,253
)
(250
)
(2,450
)
(14,953
)
Unit-based compensation
468
468
Issuance of units to LTIP participants
26,984
(124
)
26,984
(124
)
Balance at December 31, 2008
5,889,484
$
32,371
119,643
$
653
6,009,127
$
2,297
$
35,321
Net income
23,037
467
5,895
29,399
Partners' contributions
650,029
11,329
13,266
231
663,295
11,560
Partners' distributions
(13,141
)
(266
)
(6,125
)
(19,532
)
Unit-based compensation
472
472
Issuance of units to LTIP participants
30,883
(108
)
30,883
(108
)
Balance at December 31, 2009
6,570,396
$
53,960
132,909
$
1,085
6,703,305
$
2,067
$
57,112
See accompanying notes to consolidated financial statements.
F-11
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
CONSOLIDATED
    STATEMENTS OF CASH FLOWS
(in
    thousands)
Oxford Mining
Oxford Resource Partners, LP
Company
(Successor)
(Predecessor)
Period from
Period from
Years Ended
August 24 to
January 1
December 31
December 31
to August 23
2009
2008
2007
2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
$
23,504
$
(2,482
)
$
1,522
$
(3,553
)
Adjustments to reconcile net income (loss) to net cash provided
    by (used
in) operating activities:
Depreciation, depletion, and amortization
25,902
16,660
4,926
9,025
Interest rate swap adjustment to market
(1,681
)
574
1,107
—
Loan fee amortization
530
398
131
148
Loss on debt extinguishment
1,252
—
—
—
Non-cash compensation expense
472
468
25
—
Advanced royalty recoupment
1,390
1,020
261
695
Loss (gain) on disposal of property and equipment
1,177
(1,407
)
(9
)
(25
)
(Gain) on acquisition
(3,823
)
—
—
—
Noncontrolling interest in subsidiary earnings
5,895
2,891
537
682
(Increase) decrease in assets:
Accounts receivable
(2,875
)
(3,906
)
834
(1,785
)
Inventory
(2,062
)
(479
)
358
(847
)
Other assets
(2,807
)
(494
)
(4,368
)
(167
)
Increase (decrease) in liabilities:
Accounts payable and other liabilities
1,412
6,720
(11,347
)
10,386
Asset retirement obligation
1,094
1,509
(454
)
3,178
Provision for below-market contracts and deferred revenue
(13,840
)
12,479
(2,001
)
(103
)
Net cash provided by (used in) operating activities
35,540
33,951
(8,478
)
17,634
CASH FLOWS FROM INVESTING ACTIVITIES:
Phoenix Coal acquisition
(18,275
)
—
—
—
Purchase of mineral rights and land
(5,049
)
(284
)
(24,560
)
(1,919
)
Purchase of producing mines
(2,346
)
(1,476
)
(312
)
(2,285
)
Royalty advances
(679
)
(858
)
(88
)
(1,201
)
Purchase of property and equipment
(24,850
)
(25,188
)
(77,155
)
(11,305
)
Proceeds from sale of property and equipment
88
3,972
—
—
Change in restricted cash
(4
)
(67
)
(1,221
)
—
Payments received — notes receivable
—
—
—
91
Net cash used in investing activities
(51,115
)
(23,901
)
(103,336
)
(16,619
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings
9,810
14,800
74,549
6,445
Payments on borrowings
(2,576
)
(5,853
)
(175
)
(6,964
)
Capital contributions from partners
11,560
11,000
36,400
—
Proceeds from sale of minority interest
—
—
—
980
Net advances (payments) on line of credit
4,500
(500
)
500
(13
)
Distributions to noncontrolling interest
(6,125
)
(2,450
)
—
(343
)
Distributions to partners
(13,407
)
(12,503
)
—
—
Payments to shareholders of predecessor
—
—
—
(339
)
Net cash provided by (used in) financing activities
3,762
4,494
111,274
(234
)
Net increase/(decrease) in cash
(11,813
)
14,544
(540
)
781
CASH AND CASH EQUIVALENTS, beginning of period
15,179
635
1,175
394
CASH AND CASH EQUIVALENTS, end of period
$
3,366
$
15,179
$
635
$
1,175
See accompanying notes to
    consolidated financial statements.
F-12
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1:
ORGANIZATION
    AND PRESENTATION
Significant
    Relationships Referenced in Notes to Consolidated Financial
    Statements
•
"We," "us," "our,"
    "Successor" or the "Partnership" means the
    business and operations of Oxford Resource Partners, LP, the
    parent entity, as well as its consolidated subsidiaries.
•
"ORLP" means Oxford Resource Partners, LP,
    individually as the parent entity, and not on a consolidated
    basis.
•
Our "GP" means Oxford Resources GP, LLC, the general
    partner of Oxford Resource Partners, LP.
Organization
We are a low cost producer of high value steam coal. We focus on
    acquiring steam coal reserves that we can efficiently mine with
    our modern, large scale equipment. Our reserves and operations
    are strategically located in Northern Appalachia and the
    Illinois Basin to serve our primary market area of Illinois,
    Indiana, Kentucky, Ohio, Pennsylvania and West Virginia. These
    coal reserves are mined by our subsidiaries, Oxford Mining
    Company, LLC ("Oxford Mining"), Oxford Mining
    Company-Kentucky, LLC and Harrison Resources, LLC
    ("Harrison Resources").
We are managed by our GP and all executives, officers and
    employees who provide services to us are employees of our GP.
    Charles Ungurean, the President and Chief Executive Officer of
    our GP and a member of our GP's board of directors, and
    Thomas Ungurean, the Senior Vice President, Equipment,
    Procurement and Maintenance of our GP, are the co-owners of
    C&T Coal, Inc. ("C&T Coal"). Prior to our
    acquisition of Oxford, C&T Coal owned 100% of the
    outstanding ownership interest in Oxford Mining Company
    ("Predecessor" or "Oxford").
We were formed in August 2007 to acquire all of the
    ownership interests in Oxford. On August 24, 2007, AIM
    Oxford Holdings, LLC ("AIM Oxford") contributed total
    consideration to us of $36.4 million in cash, and C&T
    Coal contributed 100% of its ownership interest in Oxford to us
    for a distribution of $20.4 million in cash and
    $16.0 million of working capital which was distributed
    prior to this transaction and therefore is not reflected in the
    table below. Contemporaneously, we entered into a credit
    facility and the initial borrowings were used to pay in full
    Oxford's existing debt and to pay transaction cost and
    replenish working capital. The transaction costs were
    $9.0 million.
The purchase consideration was comprised of the following:
AIM Oxford capital contributions
$
36,400,000
Long-term bank borrowing
70,000,000
Revolver borrowing
2,990,000
Deemed value of C&T Coal's retained interest
19,600,000
Subtotal
128,990,000
Less:
Cash on hand
1,034,000
Distribution to C&T Coal
20,400,000
Net purchase consideration
$
107,556,000
At that time, C&T Coal and AIM Oxford held a 34.3% and
    63.7% limited partner interest in ORLP, respectively, and our GP
    owned a 2% general partner interest. Also at that time, the
    members of our GP were AIM Oxford with a 65% ownership interest
    and C&T Coal with a 35% ownership interest. After taking
    into
F-13
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 1:
ORGANIZATION
    AND PRESENTATION — (Continued)
account their indirect ownership of ORLP through our GP, AIM
    Oxford held a 65% total interest in ORLP and C&T Coal held
    a 35% total interest in ORLP.
The acquisition of Oxford was accounted for under the purchase
    method of accounting as prescribed by Statement of Financial
    Accounting Standards ("SFAS") 141,
Business
    Combinations,
and we have included all operating assets and
    liabilities of Oxford except for bank debt that was paid in full
    as part of the transaction. The purchase price was allocated to
    the assets acquired and liabilities assumed based on their
    estimated fair values at the transaction date. The estimated
    fair values of long-lived tangible and intangible assets were
    determined primarily through third-party appraisals. Due to
    C&T Coal's limited partner interest in the Partnership
    and its ownership interest in our GP, the purchase accounting
    fair value adjustments are limited to the newly acquired 65%
    total interest purchased by AIM Oxford pursuant to Emerging
    Issues Task Force Abstract ("EITF")
88-16,
Basis in Leveraged Buyout Transactions
.
The following is a summary of the fair values of the assets
    acquired and liabilities assumed as of the date of acquisition:
Net working capital
$
5,195,000
Property and equipment
77,617,000
Intangibles
4,976,000
Mineral rights
19,730,000
Coal sales contracts
(2,726,000
)
Other
2,764,000
Total
$
107,556,000
Subsequent to our formation, AIM Oxford and C&T Coal made
    several capital contributions for various purposes including
    purchasing property, plant and equipment and acquiring the
    surface mining operations of Phoenix Coal Corporation
    ("Phoenix Coal"). See Note 3. The capital
    contributions were not all in direct proportion to AIM
    Oxford's and C&T Coal's initial limited partner
    interests in us. As a result of the disproportionate capital
    contributions, AIM Oxford's and C&T Coal's
    ownership of the Partnership, as of December 31, 2009, is
    64.39% and 32.77%, respectively, with 1.98% and 0.86% interests
    being owned by our GP and participants in the Partnership's
    Long-Term Incentive Plan ("LTIP"), respectively. AIM
    Oxford and C&T Coal own 66.27% and 33.73%, respectively, in
    the GP.
Basis
    of Presentation and Principles of Consolidation
The accompanying consolidated financial statements include the
    accounts and operations of the Partnership and its consolidated
    subsidiaries and are prepared in conformity with accounting
    principles generally accepted in the United States of America
    ("US GAAP"). We have included the accounts of our
    Predecessor and its subsidiaries for the eight month period
    ended August 23, 2007 in the consolidated statements of
    operations, cash flows and shareholders' equity.
We own a 51% interest in Harrison Resources and are therefore
    deemed to have control. As a result, we consolidate all of
    Harrison Resources' accounts with all material intercompany
    transactions and balances being eliminated in our consolidated
    financial statements. The 49% portion of Harrison Resources that
    we do not own is reflected as "Noncontrolling
    interest" in the consolidated balance sheet. See
    Note 16.
F-14
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 2:
SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES
Use of
    Estimates
In order to prepare financial statements in conformity with US
    GAAP, we are required to make estimates and assumptions that
    affect the reported amounts of assets and liabilities and the
    disclosures of contingent assets and liabilities (if any) at the
    date of the financial statements and the reported amounts of
    revenue and expenses during the reporting period. The most
    significant areas requiring the use of management estimates and
    assumptions relate to
units-of-production
amortization calculations, asset retirement obligations, useful
    lives for depreciation of fixed assets and estimates of fair
    values for asset impairment purposes. The estimates and
    assumptions that we use are based upon our evaluation of the
    relevant facts and circumstances as of the date of the financial
    statements. Actual results could ultimately differ from those
    estimates.
Cash
    and Cash Equivalents
Cash and cash equivalents consist of all unrestricted cash
    balances and highly liquid investments that have an original
    maturity of three months or less. Financial instruments and
    related items, which potentially subject us to concentrations of
    credit risk, consist primarily of cash, cash equivalents and
    trade receivables. We place our cash and temporary cash
    investments with high credit quality institutions. At times,
    such investments may be in excess of the FDIC insurance limit.
    We have not experienced any losses in such accounts and believe
    we are not exposed to any significant credit risk relating to
    our cash and cash equivalents.
Restricted
    Cash
We had restricted cash and cash equivalents related to Harrison
    Resources of $1,877,000 and $1,873,000 at December 31, 2009
    and 2008, respectively, which are included in the balance sheet
    caption "Other long-term assets" due to their
    anticipated release from restriction. Harrison Resources'
    cash, which is deemed to be restricted due to the limitations of
    its use for Harrison Resources' operations, primarily
    relates to funds set aside for future reclamation obligations.
    See Note 16.
Allowance
    for Doubtful Accounts
We establish an allowance for losses on trade receivables when
    it is probable that all or part of the outstanding balance will
    not be collected. Our management regularly reviews the
    probability that a receivable will be collected and establishes
    or adjusts the allowance as necessary. There was no allowance
    for doubtful accounts at December 31, 2009 and 2008.
Inventory
Inventory consists of coal that has been completely uncovered or
    that has been removed from the pit and stockpiled for crushing,
    washing, or shipment to customers. Inventory also consists of
    supplies, spare parts and fuel. Inventory is valued at the lower
    of average cost or market. The cost of coal inventory includes
    certain operating expenses and operating overhead.
Property,
    Plant and Equipment
Property, plant and equipment are recorded at cost. Expenditures
    that extend the useful lives of existing plant and equipment are
    capitalized. Maintenance and repairs that do not extend the
    useful life or increase productivity are charged to operating
    expense as incurred. Exploration expenditures are charged to
    operating expense as incurred, including costs related to
    locating coal deposits and drilling and evaluation costs
    incurred
F-15
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 2:
SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES — (Continued)
to assess the economic viability of such deposits. Plant and
    equipment are depreciated principally on the straight-line
    method over the estimated useful lives of the assets based on
    the following schedule:
Buildings and tipple
25 - 39 years
Machinery and equipment
7 - 12 years
Vehicles
5 - 7 years
Furniture and fixtures
3 - 7 years
Railroad siding
7 years
We acquire our reserves through purchases or leases of coal
    reserves. Coal reserves are recorded at fair value under
    purchase accounting at our formation date of August 24,
    2007 or as part of the Phoenix Coal acquisition. See
    Note 3. We deplete our reserves using the
units-of-production
method, without residual value, on the basis of tonnage mined in
    relation to estimated recoverable tonnage. At December 31,
    2009 and 2008, all of our reserves were attributed to mine
    complexes engaged in mining operations or leased to third
    parties. We believe that the carrying value of these reserves
    will be recovered. Residual surface values are classified as
    land and not depleted.
Exploration expenditures are charged to operating expense as
    incurred, including costs related to locating coal deposits and
    drilling and evaluation costs incurred to assess the economic
    viability of such deposits. Once the economic viability of such
    deposits is established, future expenditures are classified as
    mine development costs and are capitalized until production
    commences. Amortization of these mine development costs is
    initiated when the mine begins production using the
units-of-production
method based upon the estimated recoverable tonnage.
Financial
    Instruments and Derivative Financial Instruments
Our financial instruments include cash and cash equivalents,
    accounts receivable, accounts payable, fixed rate debt, variable
    rate debt, an interest rate swap agreement and an interest rate
    cap agreement. We do not hold or issue financial instruments or
    derivative financial instruments for trading purposes.
We used an interest rate swap agreement to partially reduce
    risks related to floating rate financing agreements that are
    subject to changes in the market rate of interest. Terms of the
    interest rate swap agreement required us to receive a variable
    interest rate and pay a fixed interest rate. Our interest rate
    swap agreement and its variable rate financings were based upon
    the three-month London Interbank Offered Rate
    ("LIBOR"). We currently have an interest rate cap
    agreement that sets an upper limit on LIBOR that we would have
    to pay under the terms of our existing credit facility. We did
    not elect hedge accounting for either agreement and so changes
    in market value on these derivatives are included in interest
    expense on the consolidated statements of operations.
We measure our derivatives (interest rate swap agreement or
    interest rate cap agreement) at fair value on a recurring basis
    using significant observable inputs, which are Level 2
    inputs as defined in the fair value hierarchy. See Note 12.
Our risk management policy is to purchase up to 75% of our
    diesel fuel gallons on fixed price forward contracts. These
    contracts meet the normal purchases and sales exclusion and
    therefore are not accounted for as derivatives. We take physical
    delivery of all the fuel under these forward contracts and such
    contracts have a term of one year or less.
F-16
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 2:
SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES — (Continued)
Advance
    Royalties
A substantial portion of our reserves are leased. Advance
    royalties are advance payments made to lessors under terms of
    mineral lease agreements that are recoupable through a reduction
    in royalties payable on future production. Amortization of
    leased coal interests is computed using the
units-of-production
method over estimated recoverable tonnage.
Long-Lived
    Assets
We follow authoritative guidance that requires projected future
    cash flows from use and disposition of assets to be compared
    with the carrying amounts of those assets when impairment
    indicators are present. When the sum of projected cash flows is
    less than the carrying amount, impairment losses are indicated.
    If the fair value of the assets is less than the carrying amount
    of the assets, an impairment loss is recognized. In determining
    such impairment losses, discounted cash flows or asset
    appraisals are utilized to determine the fair value of the
    assets being evaluated. Also, in certain situations, expected
    mine lives are shortened because of changes to planned
    operations. When that occurs and it is determined that the
    mine's underlying costs are not recoverable in the future,
    reclamation and mine closure obligations are accelerated. To the
    extent it is determined that an asset's carrying value will
    not be recoverable during a shorter mine life, the asset is
    written down to its recoverable value. No impairment losses were
    recognized during any of the years or periods presented.
Identifiable
    Intangible Assets and Liabilities
Identifiable intangible assets are recorded in other assets in
    the accompanying consolidated balance sheets. We capitalize
    costs incurred in connection with borrowings or the
    establishment of credit facilities. These costs are amortized as
    an adjustment to interest expense over the life of the
    borrowings or term of the credit facility using the interest
    method.
We also have recorded intangible assets and liabilities at fair
    value associated with certain customer relationships and
    below-market coal sales contracts, respectively. These balances
    arose from the use of purchase accounting for business
    combinations and so the assets and liabilities were adjusted to
    fair value. These intangible assets are being amortized over
    their expected useful lives. See the "Coal Sales
    Contracts" section of Note 2 and Note 7 for
    further details.
Asset
    Retirement Obligation
Our asset retirement obligations, or AROs, arise from the
    Surface Mining Control and Reclamation Act of 1977 (SMCRA) and
    similar state statutes, which require that mine property be
    restored in accordance with specified standards and an approved
    reclamation plan. Our AROs are recorded initially at fair value.
    It has been our practice, and we anticipate that it will
    continue to be our practice, to perform a substantial portion of
    the reclamation work using internal resources. Hence the
    estimated costs used in determining the carrying amount of our
    AROs may exceed the amounts that are eventually paid for
    reclamation costs if the reclamation work was performed using
    internal resources.
To determine the fair value of our AROs, we calculate on a mine
    by mine basis the present value of estimated reclamation cash
    flows. This process requires us to estimate the current
    disturbed acreage subject to reclamation, estimates of future
    reclamation costs and assumptions regarding the mine's
    productivity. These cash flows are discounted at the
    credit-adjusted, risk free interest rate based on
    U.S. Treasury bonds with a maturity similar to the expected
    lives of our mines.
F-17
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 2:
SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES — (Continued)
When the liability is initially recorded for the costs to open a
    new mine site, the offset is recorded to the producing mine
    asset. Over time, the ARO liability is accreted to its present
    value, and the capitalized cost is depreciated over the
units-of-production
for the related mine. The liability is also increased as
    additional land is disturbed during the mining process. The
    timeline between digging the mining pit and extracting the coal
    is relatively short; therefore, much of the liability created
    for active mining is expensed within a month or so of
    establishment because the related coal has been extracted. If
    the assumptions used to estimate the ARO do not materialize as
    expected or regulatory changes occur, reclamation costs or
    obligations to perform reclamation and mine closure activities
    could be materially different than currently estimated. We
    review our entire reclamation liability at least annually and
    make necessary adjustments for permit changes as granted by
    state authorities, additional costs resulting from revisions to
    cost estimates and the quantity of disturbed acreage during the
    current year. At December 31, 2009, we had recorded ARO
    liabilities of $13.3 million, including amounts reported as
    current liabilities. On an aggregate undiscounted basis, we
    estimate the cost of final mine closure to be approximately
    $15.5 million.
Income
    Taxes
Prior to being contributed to us in August 2007, Oxford elected
    to be recognized as an "S" Corporation under the
    provisions of the Internal Revenue Code, which provides that, in
    lieu of federal and state income taxes, the shareholders were
    taxed on their proportionate share of Oxford's income,
    deductions, losses and credits. Therefore, no provision or
    liability for federal or state income taxes was presented in
    Oxford's financial statements.
As a partnership, we are not a taxable entity for federal or
    state income tax purposes; the tax effect of our activities
    passes through to our unitholders. Therefore, no provision or
    liability for federal or state income taxes is included in our
    financial statements. Net income for financial statement
    purposes may differ significantly from taxable income reportable
    to our unitholders as a result of timing or permanent
    differences between financial reporting under US GAAP and the
    regulations promulgated by the Internal Revenue Service.
Authoritative accounting guidance on accounting for uncertainty
    in income taxes establishes the criterion that an individual tax
    position is required to meet for some or all of the benefits of
    that position to be recognized in our financial statements. On
    initial application, the uncertain tax position guidance has
    been applied to all tax positions for which the statute of
    limitations remains open. Only tax positions that meet the
    more-likely-than-not recognition threshold at the adoption date
    are recognized or will continue to be recognized.
Revenue
    Recognition
Revenue from coal sales is recognized and recorded when shipment
    or delivery to the customer has occurred, prices are fixed or
    determinable and the title or risk of loss has passed in
    accordance with the terms of the sales contract. Under the
    typical terms of these contracts, risk of loss transfers to the
    customers at the mine or port, when the coal is loaded on the
    rail, barge, or truck.
On September 29, 2008, we executed and received a
    prepayment from one of our customers of $13,250,000 toward its
    future coal deliveries in 2009. This amount was classified as
    deferred revenue and recognized as revenue as we delivered the
    coal in accordance with the terms of the arrangement. As of
    December 31, 2009, $2,090,000 of the prepayment remains on
    our balance sheet as deferred revenue. We expect this balance
    will be fully recognized as revenue in 2010.
Freight and handling costs paid to third-party carriers and
    invoiced to customers are recorded as cost of transportation and
    transportation revenue, respectively.
F-18
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 2:
SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES — (Continued)
Royalty and non-coal revenue consists of coal royalty income,
    service fees for providing landfill earth moving services,
    commissions that we receive from a third party who sells
    limestone that we recover during our coal mining process,
    service fees for operating a coal unloading facility and fees
    that we receive for trucking ash for two municipal utility
    customers. Revenues are recognized when earned or when services
    are performed. Royalty revenue relates to the overriding royalty
    we receive on our underground coal reserves that we sublease to
    a third party mining company. Prior to June 2008, we did not
    receive any royalties because we had purchased the output of
    this mine thus no royalty was due to us. Starting in June 2008,
    our sublessee began selling the coal production for its own
    account which entitled us to start receiving royalty revenue.
    For the years ended 2009 and 2008, we received royalties of
    $4,513,000 and $1,289,000, respectively.
Coal
    Sales Contracts
Our below-market coal sales contracts were acquired through the
    Phoenix Coal acquisition and in connection with our acquisition
    of Oxford in 2007 for which the prevailing market price for coal
    specified in the agreement was in excess of the agreement price.
    The fair value was based on discounted cash flows resulting from
    the difference between the below-market agreement price and the
    prevailing market price at the date of acquisition. The
    difference between the below-market agreements cash flows and
    the cash flows at the prevailing market price is amortized into
    coal sales on the basis of tons shipped over the term of the
    respective contract.
Unit-Based
    Compensation
We account for unit-based awards in accordance with applicable
    guidance, which establishes standards of accounting for
    transactions in which an entity exchanges its equity instruments
    for goods or services. Unit-based compensation expense is
    recorded based upon the fair value of the award at grant date.
    Such costs are recognized as expense on a straight-line basis
    over the corresponding vesting period. The fair value of our
    LTIP units is determined based on the sale price of our limited
    partner units in arm's-length transactions. The unit price
    fair value was increased in September 2009 in connection with
    the Phoenix Coal acquisition where additional units were
    purchased by C&T Coal and AIM Oxford disproportionately to
    their respective ownership interests to help fund the
    acquisition. This resulted in C&T Coal's previous
    ownership interest being diluted. We verified the reasonableness
    of the new valuation of our units using traditional valuation
    techniques for publicly traded partnerships. See Note 13.
Earnings
    Per Unit
For purposes of our earnings per unit calculation, we have
    applied the two class method. The classes of units are our
    limited partner and general partner units. All outstanding units
    share prorata in income allocations and distributions and our
    general partner has sole voting rights. Limited partner units
    have been separated into Class A and Class B to
    prepare for a potential transaction such as an initial public
    offering.
Limited Partner Units:  Basic earnings per unit are
    computed by dividing net income attributable to limited partners
    by the weighted average units outstanding during the reporting
    period. Diluted earnings per unit are computed similar to basic
    earnings per unit except that the weighted average units
    outstanding and net income attributable to limited partners are
    increased to include phantom units that have not yet vested and
    that will convert to LTIP units upon vesting. In years of a
    loss, the phantom units are not included in the earnings per
    unit calculation.
General Partner Units:  Basic earnings per unit are
    computed by dividing net income attributable to our GP by the
    weighted average units outstanding during the reporting period.
    Diluted earnings per unit for our GP are computed similar to
    basic earnings per unit except that the net income attributable
    to the general partner units is adjusted for the dilutive impact
    of the phantom units.
F-19
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 2:
SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES — (Continued)
The computation of basic and diluted earnings per unit under the
    two-class method for limited partner units and general partner
    units is presented below:
Oxford Resource Partners, LP
Period from
Years Ended December 31,
August 24 to
2009
2008
December 31, 2007
(in thousands except unit amounts)
Limited partner units
Average units outstanding:
Basic
6,061,072
5,554,395
4,900,000
Effect of unit-based awards
23,436
n/a
1,956
Diluted
6,084,508
5,554,395
4,901,956
Net income attributable to limited partners
Basic
$
23,037
$
(2,432
)
$
1,492
Diluted
23,038
(2,432
)
1,492
Earnings per limited partner unit
Basic
$
3.80
$
(0.44
)
$
0.30
Diluted
3.79
(0.44
)
0.30
General partner units
Average units outstanding:
Basic and diluted
123,023
113,241
100,000
Net income attributable to general partner
Basic
$
467
$
(50
)
$
30
Diluted
466
(50
)
30
Earnings per general partner unit
Basic
$
3.80
$
(0.44
)
$
0.30
Diluted
3.79
(0.44
)
0.30
New
    Accounting Standards Issued and Adopted
In June 2009, the FASB issued a new standard establishing the
    FASB Accounting Standards Codification
    ("Codification") as the sole source of authoritative
    generally accepted accounting principles. The Codification
    reorganized existing U.S. accounting and reporting
    standards issued by the FASB and other related private sector
    standard setters into a single source of authoritative
    accounting principles arranged by topic. The Codification
    supersedes all existing U.S. accounting standards; all
    other accounting literature not included in the Codification
    (other than Securities and Exchange Commission guidance for
    publicly traded companies) is considered non-authoritative. This
    standard is effective for interim and annual reporting periods
    ending after September 15, 2009. The Codification does not
    change existing US GAAP.
In September 2009, the FASB issued Accounting Standards Update
    ("ASU")
2009-06,
Implementation Guidance on Accounting for Uncertainty in Income
    Taxes and Disclosure Amendments for Nonpublic Entities. This
    update addresses the need for additional implementation guidance
    on accounting for uncertainty in income taxes for all entities.
    The update clarifies that an entity's tax status as a pass
    through or tax-exempt
not-for-profit
entity is a tax position subject to recognition requirements of
    the standard and therefore must use the recognition and
    measurement guidance when assessing their tax positions. The ASU
2009-06
updates are effective for interim and annual periods ending
    after September 15, 2009. The adoption of the guidance in
F-20
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 2:
SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES — (Continued)
ASU
2009-06
during the third quarter of 2009 did not have a material impact
    on our consolidated financial statements.
In May 2009, the FASB issued new guidance for accounting for
    subsequent events that established the accounting for and
    disclosure of events that occur subsequent to the balance sheet
    date but before financial statements are issued or are available
    to be issued. The standard provides guidance on
    management's assessment of subsequent events and
    incorporates this guidance into accounting literature. The
    standard is effective prospectively for interim and annual
    periods ending after June 15, 2009. We adopted this
    standard for the year ended December 31, 2009 and the
    adoption did not impact our consolidated financial statements.
    See Note 22.
In December 2007, the FASB issued revised guidance on business
    combinations. This new guidance establishes principles and
    requirements for the acquirer of a business to recognize and
    measure in its financial statements. This amendment applies to
    all business combinations and establishes guidance for
    recognizing and measuring identifiable assets, liabilities,
    noncontrolling interests in the acquiree and goodwill. Most of
    these items are recognized at their full fair value on the
    acquisition date, including acquisitions where the acquirer
    obtains control but less than 100% ownership in the acquiree.
    The amendment also requires expensing acquisition-related costs
    as incurred and establish disclosure requirements to enable the
    evaluation of the nature and financial effects of the business
    combination. This guidance is effective for business
    combinations with an acquisition date in fiscal years beginning
    after December 15, 2008. We have recorded the acquisition
    of the surface coal mining assets of Phoenix Coal dated
    September 30, 2009 under this revised guidance. See
    Note 3. The impact of adoption was to expense $379,000 of
    previously capitalized acquisition costs as of January 1,
    2009.
In December 2007, the FASB issued new guidance on the accounting
    for noncontrolling ownership interests in a subsidiary and for
    the deconsolidation of a subsidiary. The guidance requires that
    noncontrolling ownership interests in consolidated subsidiaries
    be presented in the consolidated balance sheet within
    partners' capital as a separate component from the
    parent's equity as opposed to mezzanine equity.
    Consolidated net income will now be disclosed as the amount
    attributable to both the parent and the noncontrolling
    interests. The guidance also provides for changes in the
    parent's ownership interest in a subsidiary, including
    transactions where control is retained and where control is
    relinquished; it also requires expanded disclosures in the
    consolidated financial statements that clearly identify and
    distinguish between the interests of the parent owners and the
    interests of the noncontrolling owners of a subsidiary. This
    guidance requires retrospective application to all periods
    presented, as included in our consolidated financial statements.
New
    Accounting Standards Issued and Not Yet Adopted
In August 2009, the FASB issued ASU
2009-05,
Measuring Liabilities at Fair Value. The amendment provides
    clarification that in circumstances in which a quoted price in
    an active market for the identical liability is not available, a
    reporting entity is required to measure fair value using one or
    more of the alternative valuation methods outlined in the
    guidance. It also clarifies that restrictions preventing the
    transfer of a liability should not be considered as a separate
    input or adjustment in the measurement of its fair value. This
    amendment was effective as of the beginning of interim and
    annual reporting periods that begin after August 27, 2009.
    The adoption of this guidance did not impact our consolidated
    financial statements.
In June 2009, the FASB amended guidance for the consolidation of
    a variable interest entity ("VIE"). This guidance
    updated the determination of whether an enterprise is the
    primary beneficiary of a VIE, and is, therefore, required to
    consolidate an entity, by requiring a qualitative analysis
    rather than a quantitative analysis. This standard also requires
    continuous reassessments of whether an enterprise is the primary
    beneficiary of a VIE. Previously, reconsideration was required
    only when specific events had occurred. This
F-21
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 2:
SUMMARY
    OF SIGNIFICANT ACCOUNTING
    POLICIES — (Continued)
guidance also requires enhanced disclosure about an
    enterprise's involvement with a VIE. The provisions of
    these updates are effective as of the beginning of interim and
    annual reporting periods that begin after November 15,
    2009. We do not believe that this standard will have a material
    impact on our consolidated financial statements.
NOTE 3:
ACQUISITION
On September 30, 2009, we acquired 100% of the active
    western Kentucky surface mining coal operations of Phoenix Coal.
    This acquisition provided us an entry into the Illinois Basin
    and consisted of four active surface coal mines and coal
    reserves of 20 million tons, as well as mineral rights,
    working capital and various coal sales and purchase contracts.
    The application of purchase accounting requires that the total
    purchase price be allocated to the fair value of assets acquired
    and liabilities assumed based on the fair values of the assets
    and the liabilities at the acquisition date. The following table
    summarizes the fair values of the assets acquired and the
    liabilities assumed at the date of acquisition:
Net working capital
$
1,594,000
Mineral rights and land
10,264,000
Property, plant and equipment, net
20,519,000
Other assets
404,000
Coal sales contracts
(6,600,000
)
Other liabilities
(4,083,000
)
Net assets acquired
$
22,098,000
The purchase price of $18,275,000 was less than the fair value
    of the net assets acquired of $22,098,000, and as a result we
    recorded a gain of $3,823,000 included in other operating income
    in the consolidated statements of operations for the year ended
    December 31, 2009. Phoenix Coal's surface coal mining
    operations had previously operated at a loss and its management
    and board of directors elected to exit the surface mining
    business to focus on maximizing the value of its underground
    reserves.
As part of the acquisition agreement, we agreed to make
    additional payments of up to $1,000,000 in two installments to
    Phoenix Coal if Phoenix Coal secured specific surface and
    mineral rights by certain dates, the last of which will expire
    on June 30, 2010. During the fourth quarter of 2009, we
    paid $500,000 to Phoenix Coal for obtaining the surface rights
    pertaining to certain coal leases. The remaining $500,000
    contingent payment was paid to Phoenix Coal in January 2010 for
    obtaining the mineral rights and is discussed further in our
    subsequent events Note 22. At the closing date, we
    concluded that the fair value of the contingent liability was
    $1,000,000 as the payment was deemed probable.
We also assumed a contract with a third party to pay a
    contingent fee if the third party was able to arrange to lease
    or purchase, on our behalf, a specified amount of coal reserves
    by July 31, 2010. The contract called for a payment of
    $1,000,000; however, we concluded that the fair value of the
    contingent liability was $625,000 using a probability weighted
    average of the likely outcomes. That amount was recorded as a
    liability with a corresponding asset in the consolidated balance
    sheet under the caption of "Property, plant and equipment,
    net."
For the fourth quarter of 2009, our surface coal mine operations
    that we acquired from Phoenix Coal reported total revenue of
    $22.5 million and a net loss from operations of
    approximately $1.9 million. As a result of recording a gain
    of $3.8 million relating to the acquisition, the net income
    of these operations for the quarter was approximately
    $1.9 million, excluding general and administrative overhead
    expenses which are not allocated among subsidiaries.
F-22
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 3:
ACQUISITION — (Continued)
The following unaudited pro forma financial information reflects
    the consolidated results of operations as if the Phoenix Coal
    acquisition had occurred at the beginning of each year presented
    below. The pro forma information includes adjustments primarily
    for depreciation, depletion and amortization based upon fair
    values of property, plant and equipment and mineral rights, the
    lease of $11.1 million of equipment, and interest expense
    for acquisition debt and additional capital contributions. The
    pro forma financial information is not necessarily indicative of
    results that actually would have occurred if we had assumed
    operation of these assets on the date indicated nor is it
    indicative of future results.
Pro Forma Results
for the Year Ended
December 31,
2009
2008
(Unaudited)
Revenue
$
356,894,000
$
313,118,000
Net income (loss) attributable to Oxford Resource Partners, LP
    unitholders
7,695,000
(20,555,000
)
NOTE 4:
INVENTORY
Inventory consisted of the following at December 31:
2009
2008
Coal
$
4,759,000
$
2,462,000
Fuel
1,264,000
1,053,000
Supplies and spare parts
2,778,000
1,619,000
Total
$
8,801,000
$
5,134,000
NOTE 5:
PROPERTY,
    PLANT AND EQUIPMENT, NET
Property, plant and equipment, net of accumulated depreciation,
    depletion and amortization consisted of the following at
    December 31:
2009
2008
Property, plant and equipment — gross
Land
$
3,374,000
$
2,475,000
Coal reserves
39,905,000
25,597,000
Land and mineral rights
43,279,000
28,072,000
Buildings and tipple
2,025,000
1,375,000
Machinery and equipment
133,667,000
93,908,000
Vehicles
3,913,000
3,005,000
Furniture and fixtures
690,000
594,000
Railroad sidings
160,000
160,000
Producing mines
8,606,000
4,712,000
Total property, plant and equipment, gross
192,340,000
131,826,000
Less: accumulated depreciation, depletion and amortization
42,879,000
19,380,000
Total property, plant and equipment, net
$
149,461,000
$
112,446,000
F-23
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 5:
PROPERTY,
    PLANT AND EQUIPMENT, NET — (Continued)
The amounts of depreciation expense related to owned and leased
    fixed assets, depletion expense related to owned and leased coal
    reserves, and amortization expense related to producing mines
    for the respective years are set forth below:
Oxford Mining
Oxford Resource Partners, LP
Company
(Successor)
(Predecessor)
For the Period from
For the Period from
January 1,
Inception to
2007 to
For the Years Ended December 31,
December 31,
August 23,
2009
2008
2007
2007
Expense Type:
Depreciation
$
19,632,000
$
11,455,000
$
3,404,000
$
7,827,000
Depletion
4,672,000
3,226,000
1,030,000
216,000
Amortization
1,200,000
1,533,000
318,000
982,000
NOTE 6:
OPERATING
    LEASES
We lease certain equipment under non-cancelable lease agreements
    that expire on various dates through 2014. Generally the lease
    agreements are for a period of four years. As of
    December 31, 2009, aggregate lease payments that are
    required under operating leases that have initial or remaining
    non-cancelable lease terms in excess of one year are set forth
    below:
For the years ending December 31, 2010
$
6,289,000
2011
6,014,000
2012
4,429,000
2013
1,570,000
2014
123,000
For the years ended December 31, 2009 and 2008, the period
    from inception to December 31, 2007 and the Predecessor
    period from January 1, 2007 to August 23, 2007, we
    incurred lease expenses of approximately $5,428,000, $2,267,000,
    $260,000 and $1,775,000, respectively.
We also entered into various coal reserve lease agreements under
    which future royalty payments are due based on production. Such
    payments are capitalized as advance royalties at the time of
    payment, and amortized into royalty expense based on the stated
    recoupment rate.
NOTE 7:
INTANGIBLE
    ASSETS AND LIABILITIES
December 31, 2009
Estimated
Remaining
Accumulated
Net Carrying
Life (years)
Cost
Amortization
Value
Intangible assets
Customer relationships
18
$
3,315,000
$
1,019,000
$
2,296,000
Deferred financing costs
3
1,811,000
174,000
1,637,000
Total intangible assets
$
5,126,000
$
1,193,000
$
3,933,000
Intangible liabilities
Below-market coal sales contracts
3
$
6,600,000
$
1,705,000
$
4,895,000
F-24
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 7:
INTANGIBLE
    ASSETS AND LIABILITIES — (Continued)
December 31, 2008
Estimated
Remaining
Accumulated
Net Carrying
Life (years)
Cost
Amortization
Value
Intangible assets
Customer relationships
19
$
3,315,000
$
621,000
$
2,694,000
Deferred financing costs
4
1,786,000
528,000
1,258,000
Total intangible assets
$
5,101,000
$
1,149,000
$
3,952,000
Customer relationships represent intangible assets that were
    recorded at fair value when we acquired Oxford on
    August 24, 2007. We amortized these assets over the
    expected life of the respective customer relationships. The
    amount included in depreciation, depletion and amortization
    related to customer relationships was $398,000, $446,000 and
    $174,000 for the years ended December 31, 2009 and 2008 and
    the period from inception to December 31, 2007,
    respectively. Oxford did not have this type of intangible asset
    prior to inception.
We capitalize costs incurred in connection with the
    establishment of credit facilities. On September 30, 2009,
    we amended and restated our credit agreement (the "Restated
    Credit Agreement"). The Restated Credit Agreement was
    determined to be substantially different from our prior credit
    agreement, and therefore, we wrote off, to interest expense, the
    remaining unamortized capitalized costs of $1,252,000 from our
    prior credit agreement (the "Original Credit
    Agreement"). We incurred costs of $1,811,000 associated
    with the Restated Credit Agreement which we capitalized. These
    costs are amortized to interest expense over the life of the
    Restated Credit Agreement using the interest method.
    Amortization of deferred financing costs included in interest
    expense was $530,000, $398,000, $131,000 and $147,000 for the
    years ended December 31, 2009 and 2008, the period from
    inception to December 31, 2007 and the Predecessor period
    from January 1, 2007 to August 23, 2007, respectively.
Expected amortization of identifiable intangible assets and
    deferred loan costs for each of the next five years will be
    approximately:
During the years ending December 31, 2010
$
984,000
2011
868,000
2012
639,000
2013
254,000
2014
227,000
thereafter
961,000
We evaluate our intangible assets for impairment when indicators
    of impairment exist. For the years ended December 31, 2009
    and 2008, the period from inception through December 31,
    2007 and the Predecessor period from January 1, 2007 to
    August 23, 2007, there were no impairments related to
    intangibles.
Based on expected shipments related to the below-market
    contracts, we expect to record annual amortization income of:
During the years ending December 31, 2010
$
2,345,000
2011
1,919,000
2012
631,000
F-25
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 8:
OTHER
    CURRENT LIABILITIES
Other current liabilities consist of the following at December
    31:
2009
2008
Below-market coal sales contracts(1)
$
2,345,000
$
—
Accrued interest and interest rate swap(2)
860,000
2,262,000
Contingent liabilities(1)
1,125,000
—
Other
1,384,000
1,098,000
Total
$
5,714,000
$
3,360,000
(1)
Below-market coal sales contracts and contingent liabilities
    assumed with the Phoenix Coal acquisition. See Note 3.
(2)
The interest rate swap is discussed in Note 11.
NOTE 9:
ASSET
    RETIREMENT OBLIGATION
Our asset retirement obligations arise from the SMCRA and
    similar state statutes, which require that mine property be
    restored in accordance with specified standards and an approved
    reclamation plan. The required reclamation activities to be
    performed are outlined in our mining permits. These activities
    include reclaiming the pit and support acreage at surface mines.
We review our asset retirement obligations at least annually and
    make necessary adjustments for permit changes as granted by
    state authorities and for revisions of estimates of the amount
    and timing of costs. When the liability is initially recorded
    for the costs to open a new mine site, the offset is recorded to
    the producing mine asset. Over time, the ARO liability is
    accreted to its present value, and the capitalized cost is
    depreciated over the
units-of-production
for the related mine. The liability is also increased as
    additional land is disturbed during the mining process. The
    timeline between digging the mining pit and extracting the coal
    is relatively short; therefore, much of the liability created
    for active mining is expensed within a month or so of
    establishment because the related coal has been extracted.
At December 31, 2009, we had recorded asset retirement
    obligation liabilities of $13.3 million, including amounts
    reported as current liabilities. While the precise amount of
    these future costs cannot be determined with absolute certainty
    as of December 31, 2009, we estimate that the aggregate
    undiscounted cost of final mine closure is approximately
    $15.5 million.
The following table presents the activity affecting the asset
    retirement obligation for the respective years:
Year Ended December 31,
2009
2008
Beginning balance
$
9,292,000
$
7,644,000
Accretion expense
650,000
459,000
Payments
(3,358,000
)
(2,594,000
)
Revisions in estimated cash flows
3,802,000
3,783,000
Additions due to acquisition
2,957,000
—
Total asset retirement obligation
$
13,343,000
$
9,292,000
Less current portion
(7,377,000
)
(4,749,000
)
Noncurrent liability
$
5,966,000
$
4,543,000
F-26
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 10:
LONG-TERM
    DEBT
We had long-term debt as of December 31, 2009 and 2008
    consisting of the following:
2009
2008
FirstLight Funding I, Ltd.:
Term loans
$
64,925,000
$
65,625,000
Acquisition loans
21,304,000
14,800,000
Revolving loans
4,500,000
—
Total FirstLight Funding I, Ltd. loans
90,729,000
80,425,000
Note payable — Peabody #1
228,000
436,000
Note payable — Peabody #2
1,843,000
—
Note payable — CONSOL #1
1,570,000
3,089,000
Note payable — CONSOL #2
1,317,000
—
Note payable — Other
24,000
27,000
Long-term debt
95,711,000
83,977,000
Less current portion
(4,113,000
)
(2,535,000
)
Total long-term debt
$
91,598,000
$
81,442,000
FirstLight
    Funding I, Ltd. Debt
Our Restated Credit Agreement is with a syndicate of lenders
    with FirstLight Funding I, Ltd. ("FirstLight")
    acting as the Agent. The Restated Credit Agreement provides for
    borrowings of up to $115,000,000 in the form of $70,000,000 of
    term loans, acquisition loans of up to $25,000,000 and a
    revolving credit facility of $20,000,000. The Restated Credit
    Agreement includes the option of a Base Rate (as defined below)
    or LIBOR interest rate plus an applicable margin depending upon
    the type of borrowing. Base Rate is defined by the Restated
    Credit Agreement as the highest of (a) the rate publicly
    quoted from time to time by The Wall Street Journal as the
    "base rate on corporate loans posted by at least
    seventy-five percent (75%) of the nation's 30 largest
    banks," (b) the sum of the Federal Funds Rate plus
    one-half of one percentage point (0.50%), and (c) effective
    September 30, 2009, 1.50%. The Restated Credit Agreement is
    secured by pledging all of our assets and equity interests in
    wholly-owned subsidiaries. The Restated Credit Agreement
    requires us to meet various financial covenants and contains
    financial and other covenants that limit our ability to, among
    other things, effect acquisitions or dispositions and borrow
    additional funds.
At December 31, 2009 and 2008, we had $90,729,000 and
    $80,425,000, respectively, of borrowings outstanding and
    $8,245,000 and $5,404,000, respectively, of letters of credit
    outstanding. At December 31, 2009 and 2008, we had
    available unused capacity for borrowings under the Restated
    Credit Agreement and our original credit agreement
    ("Original Credit Agreement") of $7,255,000 and
    $9,900,000, respectively. As of December 31, 2009 and 2008,
    the Base Rate was 3.25% and LIBOR was 0.25% and 1.83%,
    respectively.
In February 2009, we were notified by FirstLight that we failed
    to provide an updated list of after-acquired properties within
    the timeframe outlined in our Original Credit Agreement. This
    administrative issue was satisfactorily resolved by the Third
    Amendment and Waiver to the Original Credit Agreement that was
    executed on February 23, 2009. The Third Amendment and
    Waiver waived any potential defaults or potential events of
    default due to this administrative oversight. As consideration
    for the Third Amendment and Waiver, we paid and expensed
    amendment fees totaling $350,000 and the applicable margin for
    Term Loan 1, Acquisition Loan 1 and the Revolving Loans (as
    defined in the Original Credit Agreement) was increased from
    2.5% to 3.0% per annum for LIBOR advances and from 1.25% to
    2.75% per annum on Base Rate
F-27
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 10:
LONG-TERM
    DEBT — (Continued)
advances. The applicable margins for Term Loan 2 and Acquisition
    Loan 2 (as defined in the Original Credit Agreement) were
    increased from 5.5% to 6.5% per annum on LIBOR advances and from
    4.25% to 6.25% per annum on Base Rate advances.
In order to facilitate the Phoenix Coal acquisition, it was
    necessary to enter into negotiations with FirstLight that
    resulted in another amendment to our Original Credit Agreement.
    The parties agreed to incorporate this amendment and all prior
    amendments directly into the Restated Credit Agreement. This
    resulted in the Restated Credit Agreement, effective
    September 30, 2009. This amendment allowed for the Phoenix
    Coal acquisition, subject to certain financial limitations. As
    consideration for the Restated Credit Agreement, we paid
    amendment fees totaling $500,000 and the applicable margins for
    all Term Loan 1, Acquisition Loan 1 and the Revolving Credit
    Facility amounts outstanding or new borrowings was increased
    from 3.0% to 4.5% per annum on LIBOR loans and from 2.75% to
    4.25% per annum on Base Rate loans. The applicable margins for
    all Term Loan 2 and Acquisition Loan 2 amounts outstanding
    increased from 6.5% to 8.0% per annum on LIBOR advances and from
    6.25% to 7.75% per annum on Base Rate advances. The amendment
    also provided for a LIBOR interest rate floor of 1.0% per annum.
    In addition, the Leverage Ratio covenant, defined as total debt
    divided by the last twelve months' EBITDA (as defined in
    the Restated Credit Agreement), was reduced from 4.25 to 1.00 to
    3.50 to 1.00 for the period September 30, 2009 through
    December 31, 2010 and to 3.00 to 1.00 thereafter.
We were in compliance with all covenants under the terms of the
    Restated Credit Agreement as of December 31, 2009.
Term
    Loans
We had $64,925,000 of term loans outstanding as of
    December 31, 2009 under the Restated Credit Agreement with
    $43,625,000 representing Term Loan 1 borrowings and $21,300,000
    representing Term Loan 2 borrowings. Term Loan 1 provided for
    borrowings up to $48,000,000 and has a current stated interest
    rate equal to Base Rate plus 4.25% per annum on advances or, at
    the election of the borrower, LIBOR plus 4.5% per annum on
    advances. We are obligated to make quarterly principal payments
    of $175,000 on Term Loan 1 until maturity. During 2009, we made
    principal repayments of $700,000. Term Loan 2 provided for
    borrowings up to $22,000,000 and has a current stated interest
    rate of Base Rate plus 7.75% per annum on advances or, at the
    election of the borrower, LIBOR plus 8.0% per annum. No
    principal repayments are required on Term Loan 2 until maturity.
    Both obligations mature in August 2012 and any advances
    requested by us were prorated between the two term loans.
    Additional borrowings are not permitted under the terms of these
    term loans.
Acquisition
    Loans
We had $21,304,000 of acquisition loans outstanding as of
    December 31, 2009 with $14,454,000 representing borrowings
    under Acquisition Loan 1 and $6,850,000 representing Acquisition
    Loan 2 borrowings. Acquisition Loan 1 provided for borrowings up
    to $17,000,000 and, as of December 31, 2009, had stated
    interest rates of Base Rate plus 4.25% per annum on advances or,
    at the election of the borrower, LIBOR plus 4.50% per annum on
    advances. Acquisition Loan 2 was for $8,000,000 and had a
    current stated interest rate of Base Rate plus 7.75% per annum
    on advances or, at the election of the borrower, LIBOR plus 8.0%
    per annum on advances. Both obligations mature in August 2012
    and any advances requested by us are prorated between the two
    acquisition loans.
We had until March 30, 2009 to utilize these lines of
    credit, after which time no additional borrowings were
    permitted. Until March 30, 2009, we paid a commitment fee
    of 0.50% per annum that was due quarterly on the unused portion
    of these lines of credit. Beginning on March 30, 2009, we
    were obligated to make
F-28
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 10:
LONG-TERM
    DEBT — (Continued)
quarterly principal payments of $36,500 on Acquisition Loan 1
    until maturity. During 2009, we made principal payments of
    $146,000. No principal repayments are required on Acquisition
    Loan 2 until maturity.
Revolving
    Credit Facility
We have a revolving credit facility for Revolving Loans in the
    amount of $20,000,000. As of December 31, 2009 and 2008, we
    had $4,500,000 and $0, respectively, outstanding under the
    revolving credit facility and $8,245,000 and $5,404,000,
    respectively, of outstanding letters of credit. The revolving
    credit facility has an August 2012 maturity and a current stated
    interest rate of Base Rate plus 4.25% per annum on advances, or,
    at the election of the borrower, LIBOR plus 4.5% per annum on
    advances. Under the facility, letters of credit can be issued in
    an aggregate amount not to exceed $12,000,000, which results in
    a dollar for dollar reduction in the available capacity. As of
    December 31, 2009, we had $7,255,000 available on the
    revolving credit facility. The facility matures on
    August 24, 2012 and, until that time, only interest
    payments are required. For our outstanding letters of credit
    issued under the revolving credit facility, we pay issuing fees
    of 0.25% per annum on the stated amount of the letters of credit
    when we issue a letter of credit and an applicable margin of
    2.50% per annum to FirstLight, as the Agent, on behalf of the
    lenders. Additionally, we pay a commitment fee of 0.50% per
    annum that is due quarterly for any unused capacity under this
    revolving credit facility.
Other
    Notes Payable
Peabody #1 —
In July 2007, we
    acquired coal reserves from Peabody Energy Corporation through
    one of its subsidiaries in exchange for a note payable that is
    due in three annual payments of $250,000 at no stated interest
    rate. The obligation was secured by real property and mineral
    rights and matures in June 2010. The difference between the face
    amount and the imputed amount was recorded as a discount using
    an imputed interest rate of 9.25% and is being amortized into
    interest expense using the interest method.
Peabody #2 —
In December 2009, we
    acquired coal reserves from Peabody Energy Corporation through
    one of its subsidiaries in exchange for a down payment of
    $1,000,000 and a note payable that is due in two annual payments
    of $1,000,000 at no stated interest rate. The obligation was
    secured by real property and mineral rights and matures in
    December 2011. The difference between the face amount and the
    imputed amount was recorded as a discount using an imputed
    interest rate of 5.5% and is being amortized into interest
    expense using the interest method.
CONSOL #1 —
In August 2007,
    Harrison Resources acquired coal reserves from CONSOL Energy,
    through one of its subsidiaries, in exchange for a note payable
    that matures in August 2010. The note is payable in three equal
    installments of $1,773,000 at no stated interest rate. The
    difference between the face amount and the imputed amount was
    recorded as a discount using an imputed interest rate of 8.25%
    and is being amortized into interest expense using the interest
    method.
CONSOL #2 —
In March 2009, we
    acquired coal reserve leases from CONSOL Energy, through one of
    its subsidiaries, in exchange for a down payment of $1,500,000
    and a note payable that matures in March 2012 in an original
    face amount of $1,500,000. The note is payable in monthly
    installments based on
units-of-production
with a minimum of $500,000 due annually at no stated interest
    rate. The difference between the face amount and the imputed
    amount was recorded as a discount using an imputed interest rate
    of 4.6% and is being amortized using the interest method.
Other Note Payable —
We acquired coal
    reserves from an individual with payments due of $5,000 per year
    for ten years at no stated interest rate. The obligation matures
    in April 2015. The difference between the face amount and the
    imputed amount was recorded as a discount using an imputed
    interest rate of 6.75% and is being amortized into interest
    expense using the interest method.
F-29
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 10:
LONG-TERM
    DEBT — (Continued)
Debt
    Maturity Table
The total debt of the Partnership matures as follows:
During the years ending December 31, 2010
$
4,113,000
2011
2,268,000
2012
89,317,000
2013
4,000
2014
4,000
Thereafter
5,000
$
95,711,000
NOTE 11:
INTEREST
    RATE CAP AND SWAP AGREEMENTS
On September 11, 2009, we entered into an interest rate cap
    agreement to hedge our exposure to rising LIBOR interest rates
    during 2010. This agreement, which has an effective date of
    January 4, 2010 and a notional amount of $50,000,000,
    provides for a LIBOR interest rate cap of 2% using three-month
    LIBOR. LIBOR was 0.251% as of December 31, 2009. We paid a
    fixed fee of $85,000 for this agreement which has quarterly
    settlement dates and matures on December 31, 2010. At
    December 31, 2009, the value of the interest rate cap was
    $34,000 and was recorded in other assets and the
mark-to-market
decrease in value of $51,000 was recorded to interest expense in
    the consolidated statement of operations for the year ended
    December 31, 2009.
We entered into an interest rate swap agreement on
    August 24, 2007 that had an original notional principal
    amount of $67,500,000 and a maturity of August 2009. Under the
    swap agreement, we paid interest at a fixed rate of 4.83% and
    received interest at a variable rate equal to LIBOR (1.43% as of
    December 31, 2008), based on the notional amount. The swap
    agreement decreased interest expense by $1,681,000 for the year
    ended December 31, 2009 and increased interest expense by
    $574,000 and $1,107,000 for the year ended December 31,
    2008 and the period from inception to December 31, 2007,
    respectively. As of December 31, 2008, the fair value of
    the swap agreement was a liability of approximately $1,681,000.
    The swap agreement matured in August 2009.
NOTE 12:
FAIR
    VALUE OF FINANCIAL INSTRUMENTS
Effective January 1, 2008, we adopted the provision for
    fair value of financial assets and financial liabilities. We
    utilized fair value measurement guidance that, among other
    things, defines fair value, requires enhanced disclosures about
    assets and liabilities carried at fair value and establishes a
    hierarchal disclosure framework based upon the quality of inputs
    used to measure fair value. We elected to defer the application
    of the guidance to nonfinancial assets and liabilities until our
    fiscal year 2009 and that application did not have a material
    impact on our consolidated financial statements as of
    December 31, 2009. As a result of the adoption, we have
    elected not to measure any additional financial assets or
    liabilities at fair value, other than those which were
    previously recorded at fair value prior to the adoption.
The financial instruments measured at fair value on a recurring
    basis are summarized below:
Fair Value Measurements at December 31, 2009
Quoted Prices in
Significant
Active Markets for
Significant Other
Unobservable
Identical Liabilities
Observable Inputs
Inputs
Description
(Level 1)
(Level 2)
(Level 3)
Interest rate cap agreement
$
—
$
34,000
$
—
F-30
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 12:
FAIR
    VALUE OF FINANCIAL
    INSTRUMENTS — (Continued)
Fair Value Measurements at December 31, 2008
Quoted Prices in
Significant
Active Markets for
Significant Other
Unobservable
Identical Liabilities
Observable Inputs
Inputs
Description
(Level 1)
(Level 2)
(Level 3)
Interest rate swap agreement
$
—
$
1,681,000
$
—
The following methods and assumptions were used to estimate the
    fair values of financial instruments for which the fair value
    option was not elected:
Cash and cash equivalents, trade accounts receivable and
    accounts payable:
The carrying amount reported in
    the balance sheets for cash and cash equivalents, trade accounts
    receivable and accounts payable approximates its fair value due
    to the short maturity of these instruments.
Fixed rate debt:
The fair values of long-term
    debt are estimated using discounted cash flow analyses, based on
    current market rates for instruments with similar cash flows.
Variable rate debt:
The fair value of variable
    rate debt is estimated using discounted cash flow analyses,
    based on our best estimates of market rate for instruments with
    similar cash flows.
The carrying amounts and fair values of financial instruments
    for which the fair value option was not elected are as follows:
December 31, 2009
December 31, 2008
Carrying
Carrying
Amount
Fair Value
Amount
Fair Value
Fixed rate debt
$
4,982,000
$
4,952,000
$
3,552,000
$
3,311,000
Variable rate debt
$
90,729,000
$
90,729,000
$
80,425,000
$
80,425,000
NOTE 13:
LONG-TERM
    INCENTIVE PLAN
In November 2007, we implemented a Long-Term Incentive Plan or
    LTIP whereby equity awards may be granted to executives,
    officers, employees, directors, or consultants, as determined by
    the Board of Director's Compensation Committee
    ("Compensation Committee"), in the form of partnership
    units, and may include distribution equivalent rights. Under
    this program, we have granted phantom units that have no rights
    until they are converted upon vesting. At our option, we can
    issue cash or LTIP units upon vesting, although we do not intend
    to settle these awards in cash. To date, we have always issued
    units and those units have the right to an allocation of income
    and to distributions but are not obligated to participate in any
    capital calls. See Unit-Based Compensation section of
    Note 2 for a further description of how we value our LTIP
    units.
These units are subject to such conditions and restrictions as
    our Compensation Committee may determine, including continued
    employment or service or achievement of pre-established
    performance goals and objectives. Currently, there are no
    outstanding performance awards. Although we have the option to
    repurchase these units upon employee termination, we currently
    do not have the intent to do so. Generally, these units vest in
    equal annual increments over four years with accelerated vesting
    of the first increment in certain cases. The total number of
    units authorized to distribute under the plan was 181,348 at
    December 31, 2009. Unless amended by our Compensation
    Committee, the LTIP will expire in November 2017.
Surrendered units were used to satisfy the individual tax
    obligations of those LTIP participants electing a net issuance
    whereby we pay the employee's tax liability and the
    employee surrenders a sufficient number of units equal to the
    amount of tax liability assumed by us. After consideration of
    the grant vesting during 2009, 44,431 units remain
    available for issuance in the future.
F-31
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 13:
LONG-TERM
    INCENTIVE PLAN — (Continued)
We recognize compensation expense over the vesting period of the
    units, which is generally four years for each award. For the
    years ended December 31, 2009 and 2008 and for the period
    from inception to December 31, 2007, our gross LTIP expense
    was approximately $472,000, $468,000 and $25,000, respectively,
    which is included in selling, general and administrative
    expenses (SG&A) in our consolidated statements of
    operations. As of December 31, 2009 and 2008, approximately
    $840,000 and $1,118,000, respectively, of cost remained
    unamortized which we expect to recognize over a remaining
    weighted average period of 2 years.
The following table summarizes additional information concerning
    our unvested LTIP units:
Weighted
Average
Grant
Date Fair
Units
Value
Unvested balance at December 31, 2007
106,410
$
11.20
Granted
43,172
11.20
Issued
(26,984
)
11.20
Surrendered
(8,825
)
11.20
Forfeited
(6,410
)
11.20
Unvested balance at December 31, 2008
107,363
$
11.20
Granted
11,148
17.43
Issued
(30,883
)
11.75
Surrendered
(8,578
)
11.88
Unvested balance at December 31, 2009
79,050
$
11.79
The value of LTIP units vested during the years ended
    December 31, 2009 and 2008 and the period from inception to
    December 31, 2007 was $465,000, $401,000 and $0,
    respectively.
NOTE 14:
WORKERS'
    COMPENSATION AND BLACK LUNG
We have no liabilities under state statutes and the Federal Coal
    Mine Health and Safety Act of 1969, as amended, to pay black
    lung benefits to eligible employees, former employees and their
    dependents. With regard to workers' compensation, we
    provide benefits to our employees by being insured through state
    sponsored programs or an insurance carrier where there is no
    state sponsored program.
NOTE 15:
RETIREMENT
    PLAN
We had a money purchase pension plan in which substantially all
    full-time employees with more than six months of service
    participated. Contributions were made annually at 4% of
    qualified wages and an additional 4% was contributed on wages
    over the FICA limit up to the maximum allowed under the Internal
    Revenue Code. We incurred expense of $1,522,000, $1,083,000,
    $379,000 and $496,000 for the years ended December 31, 2009
    and 2008, the period from inception to December 31, 2007
    and the Predecessor period from January 1, 2007 to
    August 23, 2007, respectively.
Effective January 1, 2010, the money purchase pension plan
    was replaced with a 401(k) plan.
NOTE 16:
NONCONTROLLING
    INTEREST
Harrison Resources, a limited liability company, was formed in
    March 2006 by Oxford to acquire coal properties, develop mine
    sites, and mine coal for sale to customers. Effective
    January 30, 2007, 49% of
F-32
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 16:
NONCONTROLLING
    INTEREST — (Continued)
Harrison Resources was sold to CONSOL Energy and its ownership
    interest is held by one of its subsidiaries. Harrison
    Resources' revenues which are included in the consolidated
    statements of operations were $37,190,000, $20,605,000,
    $4,791,000, and $4,250,000 for the years ended December 31,
    2009 and 2008 and the periods from inception to
    December 31, 2007 and from January 1, 2007 to
    August 23, 2007, respectively. Oxford Mining has a contract
    mining agreement with Harrison Resources to operate the mines
    for an
agreed-upon
per ton price and markets all the coal under a broker agreement
    with Harrison Resources.
Harrison Resources' cash, which is deemed to be restricted
    due to the limitations of its use for Harrison Resources'
    operations and primarily relates to funds set aside for future
    reclamation obligations, was $1,877,000 and $1,873,000 at
    December 31, 2009 and 2008, respectively, and is included
    in the balance sheet caption Other long-term assets. Harrison
    Resources' total net assets as of December 31, 2009
    and 2008 were $4,218,000 and $4,688,000, respectively
The noncontrolling interest represents the 49% of Harrison
    Resources owned by CONSOL Energy, through one of its
    subsidiaries, and consists of the following:
Year Ended December 31
2009
2008
Beginning balance
$
2,297,000
$
1,856,000
Net income
5,895,000
2,891,000
Distributions to owners
(6,125,000
)
(2,450,000
)
Ending balance
$
2,067,000
$
2,297,000
NOTE 17:
COMMITMENTS
    AND CONTINGENCIES
Coal
    Sales Contracts
We are committed under long-term contracts to sell coal that
    meets certain quality requirements at specified prices. Most of
    these prices are subject to pass through or inflation adjusters
    that mitigate some risk from rising costs. Quantities sold under
    some of these contracts may vary from year to year within
    certain limits at the option of the customer or us. The
    remaining life of our long-term contracts ranges from one to
    nine years.
Purchase
    Commitments
We use independent contractors to mine some of our coal at a few
    of our mines. We also purchase coal from third parties in order
    to meet quality or delivery requirements under our customer
    agreements. We assumed one long-term purchase agreement as a
    result of the Phoenix Coal acquisition. Under this agreement, we
    are committed to purchase a certain volume of coal until the
    coal reserves covered by the contract are depleted. Based on the
    proven and probable coal reserves in place at December 31,
    2009, we expect this contract to continue beyond five years.
    Additionally, we bought coal on the spot market, and the cost of
    that coal is dependent upon the market price and quality of the
    coal. Supply disruptions could impair our ability to fill
    customer orders or require us to purchase coal from other
    sources at a higher cost to us in order to satisfy these orders.
Transportation
We depend upon barge, rail, and truck transportation systems to
    deliver our coal to our customers. Disruption of these
    transportation services due to weather-related problems,
    mechanical difficulties, strikes, lockouts, bottlenecks, and
    other events could temporarily impair our ability to supply coal
    to our customers,
F-33
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 17:
COMMITMENTS
    AND CONTINGENCIES — (Continued)
resulting in decreased shipments. We entered into a long-term
    transportation contract on April 1, 2006 for rail services,
    and that agreement has been amended and extended through
    March 31, 2011.
Defined
    Contribution Pension Plan
At December 31, 2009, we had an obligation to pay our GP
    for the purpose of funding our GP's commitments to the
    money purchase pension plan in the amount of $1,522,000. This
    amount is expected to be paid by September 2010.
Security
    for Reclamation and Other Obligations
As of December 31, 2009, we had $31,300,000 in surety bonds
    and $14,000 in cash bonds outstanding to secure certain
    reclamation obligations. Additionally, as of December 31,
    2009, we had letters of credit outstanding in support of these
    surety bonds of $6,900,000 and also a letter of credit of
    $1,345,000 guaranteeing an operating lease. Further, as of
    December 31, 2009, we had certain road bonds of $645,000
    outstanding and performance bonds outstanding of $12,300,000.
    Our management believes these bonds and letters of credit will
    expire without any claims or payments thereon and thus any
    subrogation or other rights with respect thereto will not have a
    material adverse effect on our financial position, liquidity or
    operations.
Legal
We are involved, from time to time, in various legal proceedings
    arising in the ordinary course of business. While the ultimate
    results of these proceedings cannot be predicted with certainty,
    our management believes these claims will not have a material
    adverse effect on our financial position, liquidity or
    operations.
Guarantees
Our GP and the Partnership guarantee certain obligations of our
    subsidiaries. Our management believes that these guarantees will
    expire without any liability to the guarantors, and therefore
    any indemnification or subrogation commitments with respect
    thereto will not have a material adverse effect on our financial
    position, liquidity or operations.
NOTE 18:
CONCENTRATION
    OF CREDIT RISK AND MAJOR CUSTOMERS
We have a credit policy that establishes procedures to determine
    creditworthiness and credit limits for trade customers.
    Generally, credit is extended based on an evaluation of the
    customer's financial condition. Collateral is not generally
    required, unless credit cannot be established.
We market our coal principally to electric utilities,
    municipalities and electric cooperatives and industrial
    customers in Illinois, Indiana, Kentucky, Ohio, Pennsylvania and
    West Virginia. As of December 31, 2009 and 2008, accounts
    receivable from electric utilities totaled $18.2 million
    and $16.3 million or 75% and 76% of total trade
    receivables, respectively. A small portion of these sales are
    executed through coal brokers. Three customers individually
    accounted for greater than 10% of coal sales for the year ended
    December 31, 2009 which, in the aggregate, represented
    approximately 64.1% of coal sales for the year. Two customers
    individually accounted for greater than 10% of coal sales which,
    in the aggregate, represented approximately 55.5%, 64.0% and
    64.2% of coal sales for the year ended December 31, 2008,
    the period from inception to December 31, 2007 and the
    Predecessor period from January 1, 2007 to August 23,
    2007, respectively. These same customers, in the aggregate,
    represented approximately 58.5% and 51.5% of the outstanding
    accounts receivable at December 31, 2009 and 2008,
    respectively.
F-34
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 19:
RELATED
    PARTY TRANSACTIONS
In connection with our formation in August 2007, the Partnership
    and Oxford Mining entered into an administrative and operational
    services agreement ("Services Agreement") with our GP.
    The Services Agreement is terminable by either party upon thirty
    days' written notice. Under the terms of the Services
    Agreement, our GP provides services through its employees to us
    and is reimbursed for all related costs incurred on our behalf.
    Our GP provides us with services such as general administrative
    and management services, human resources, information
    technology, finance and accounting, corporate development, real
    property, marketing, engineering, operations (including mining
    operations), geological, risk management and insurance services.
    Pursuant to the Services Agreement, we reimbursed our GP for
    costs primarily related to payroll for all the periods after
    August 24, 2007, of which $2,504,000 and $2,502,000 were
    included in our accounts payable at December 31, 2009 and
    2008, respectively.
Also in connection with our formation in August 2007, Oxford
    Mining entered into an advisory services agreement
    ("Advisory Agreement") with certain affiliates of AIM
    Oxford. The Advisory Agreement runs for a term of ten years
    until August 2017, subject to earlier termination at any time by
    the AIM Oxford affiliates. Under the terms of the Advisory
    Agreement, the AIM Oxford affiliates have duties as financial
    and management advisors to Oxford Mining, including providing
    services in obtaining equity, debt, lease and acquisition
    financing, as well as providing other financial, advisory and
    consulting services for the operation and growth of Oxford
    Mining. These services consist of advisory services of a type
    customarily provided by sponsors of U.S. private equity
    firms to companies in which they have substantial investments.
    Such services are rendered at the reasonable request of Oxford
    Mining. The basic annual fees under the Advisory Agreement were
    $250,000 for 2008, and for 2009 and each year thereafter
    increase based on the percentage increase in gross revenues.
    Further fees are payable for additional significant services
    requested. Pursuant to the Advisory Agreement, advisory fees
    were paid to AIM Oxford affiliates of $1,307,000 and $225,000
    for the years ended December 31, 2009 and 2008,
    respectively. No advisory fees were paid for the period from
    inception to December 31, 2007. The advisory fees paid for
    2009 included a transaction fee of $1,000,000 paid to the AIM
    Oxford affiliates for additional significant services in
    connection with the Restated Credit Agreement and the fee is
    included in deferred financing costs. See FirstLight Funding I,
    Ltd. Debt section of Note 10.
We have debt with CONSOL Energy, the minority owner of Harrison
    Resources, as described in Note 10. Also, coal was
    purchased for resale from CONSOL Energy in the amount of
    $1,089,000 and $4,780,000 during the period from inception to
    December 31, 2007 and the Predecessor period from
    January 1, 2007 to August 23, 2007, respectively. We
    did not purchase coal from CONSOL Energy for resale during the
    years ended December 31, 2009 and 2008.
Contract services were provided to Tunnell Hill Reclamation,
    LLC, a company with common owners, in the amount of $695,000,
    $1,050,000, $186,000 and $1,104,000 for the years ended
    December 31, 2009 and 2008, the period from inception to
    December 31, 2007 and the Predecessor period from
    January 1, 2007 to August 23, 2007, respectively.
    Accounts receivable were $70,000 and $0 from Tunnel Hill at
    December 31, 2009 and 2008, respectively. We have concluded
    that Tunnell Hill Reclamation, LLC does not represent a variable
    interest entity.
We had accounts receivable from employees and owners in the
    amount of $28,000 and $6,000 at December 31, 2009 and 2008,
    respectively, which have been collected in full subsequent to
    year end.
F-35
Table of Contents
OXFORD
    RESOURCE PARTNERS, LP AND SUBSIDIARIES
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 20:
SUPPLEMENTAL
    CASH FLOW INFORMATION
Oxford Mining
Oxford Resource Partners, LP
Company
(Successor)
(Predecessor)
For the Period from
Inception to
For the Period from
For the Years Ended December 31,
December 31,
January 1, 2007 to
2009
2008
2007
August 23, 2007
Cash paid for:
Interest
$
6,005,000
$
6,395,000
$
2,202,000
$
2,625,000
Non-cash activity
Market value of common units vested in LTIP
363,000
302,000
—
—
Increase ( decrease) in:
Accounts payable for purchase of property and equipment
755,000
2,270,000
(3,941,000
)
4,924,000
NOTE 21:
SEGMENT
    INFORMATION
We operate in one business segment. We operate surface coal
    mines in Northern Appalachia and the Illinois Basin and sell
    high value steam coal to utilities, industrial customers or
    other coal-related organizations primarily in the eastern United
    States. Our operating and executive management reviews and bases
    its decisions upon consolidated reports. All three of our
    operating subsidiaries participate primarily in the business of
    utilizing surface mining techniques to mine domestic coal and
    prepare it for sale to their customers. The operating companies
    share customers and a particular customer may receive coal from
    any one of the operating companies.
NOTE 22:
SUBSEQUENT
    EVENTS
The following represents material events that have occurred
    subsequent to December 31, 2009 through March 24,
    2010, the date these financial statements were issued.
We paid Phoenix Coal $500,000 in January 2010 for achieving
    specified objectives as to arrangements for additional coal
    leases in western Kentucky.
We made a quarterly distribution to our unitholders of
    $2,815,000 in February 2010.
We granted LTIP awards in January and February 2010 in the
    amount of $649,000. Of those units, the first 25% vested in
    January and March respectively with a remaining unvested value
    of $487,000. The remaining grant vests ratably over the next
    three years.
F-36
Table of Contents
Report of
    Independent Auditors
The Board of Directors of Phoenix Coal Inc.
We have audited the accompanying combined balance sheets of the
    Carved-Out Surface Mining Operations of Phoenix Coal Inc. (the
    Company) as described in Note 1, as of September 30,
    2009 and December 31, 2008, and the related combined
    statements of operations and comprehensive loss, group equity,
    and cash flows for the nine months ended September 30, 2009
    and for the years ended December 31, 2008 and 2007. These
    financial statements are the responsibility of Phoenix Coal
    Inc.'s management. Our responsibility is to express an
    opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards
    generally accepted in the United States. Those standards require
    that we plan and perform the audit to obtain reasonable
    assurance about whether the financial statements are free of
    material misstatement. We were not engaged to perform an audit
    of the Company's internal control over financial reporting.
    Our audits included consideration of internal control over
    financial reporting as a basis for designing audit procedures
    that are appropriate in the circumstances, but not for the
    purpose of expressing an opinion on the effectiveness of the
    Company's internal control over financial reporting.
    Accordingly, we express no such opinion. An audit also includes
    examining, on a test basis, evidence supporting the amounts and
    disclosures in the financial statements, assessing the
    accounting principles used and significant estimates made by
    management, and evaluating the overall financial statement
    presentation. We believe that our audits provide a reasonable
    basis for our opinion.
In our opinion, the financial statements referred to above
    present fairly, in all material respects, the combined financial
    position of the Company as described in Note 1, at
    September 30, 2009 and December 31, 2008, and the
    combined results of their operations and their cash flows for
    the nine months ended September 30, 2009 and for the years
    ended December 31, 2008 and 2007 in conformity with
    U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Louisville, Kentucky
December 18, 2009
F-37
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Combined Balance
    Sheets
September 30,
December 31,
2009
2008
Assets
Current assets:
Trade accounts receivable
$
6,349,835
$
2,843,134
Coal inventories
252,357
452,558
Prepaid expenses and other current assets
591,957
400,886
Total current assets
7,194,149
3,696,578
Property, plant, and equipment, net
48,576,077
45,162,984
Restricted certificates of deposit
—
509,825
Mining rights, mine development costs and mineral reserves net
    of accumulated amortization of $3,796,187 in 2009 and $3,888,082
    in 2008
16,707,173
15,649,026
Prepaid royalties
188,602
216,147
$
72,666,001
$
65,234,560
Liabilities and shareholders' equity
Current liabilities:
Trade accounts payable and accrued liabilities
$
8,839,064
$
6,449,019
Current portion of long-term debt
8,224,486
6,532,045
Current portion of asset retirement obligations
1,627,800
1,958,000
Total current liabilities
18,691,350
14,939,064
Asset retirement obligations, less current portion
2,898,278
2,366,000
Long-term debt, less current portion
13,080,972
14,641,745
Group equity
37,995,401
33,287,751
$
72,666,001
$
65,234,560
See accompanying notes.
F-38
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Combined Statements of Operations and Comprehensive
    Loss
Nine Months
Year
Year
Ended
Ended
Ended
September 30,
December 31,
December 31,
2009
2008
2007
Revenue
$
58,493,767
$
76,645,989
$
66,973,145
Cost and expenses:
Cost of sales, exclusive of depreciation and amortization shown
    separately
54,531,148
71,877,168
61,939,870
Selling expenses
5,851,821
8,188,945
7,746,824
General and administrative expenses
6,947,484
11,090,565
5,822,082
Depreciation and amortization
5,799,952
6,646,543
4,064,979
Sales contract termination cost
3,000,000
—
—
Asset impairment
—
—
2,873,055
76,130,405
97,803,221
82,446,810
Loss from operations
(17,636,638
)
(21,157,232
)
(15,473,665
)
Other income (expense)
Interest expense
(2,600,873
)
(1,811,280
)
(86,316
)
Interest income
3,900
6,302
8,292
Other, principally sale of assets
(5,142
)
(1,014,424
)
739,493
(2,602,115
)
(2,819,402
)
661,469
Loss before income taxes
(20,238,753
)
(23,976,634
)
(14,812,196
)
Income taxes
16,081
37,838
70,155
Net loss and comprehensive loss
$
(20,254,834
)
$
(24,014,472
)
$
(14,882,351
)
See accompanying notes.
F-39
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Combined
    Statements of Group Equity
For the
    Nine Months Ended September 30, 2009 and
the Years Ended December 31, 2008 and 2007
Group equity at December 31, 2006
$
18,800,282
Contribution from parent
21,670,486
Share-based compensation allocated from parent
813,454
Net loss
(14,882,351
)
Group equity at December 31, 2007
26,401,871
Contribution from parent
26,511,411
Share-based compensation allocated from parent
4,388,941
Net loss
(24,014,472
)
Group equity at December 31, 2008
33,287,751
Contribution from parent
22,703,615
Share-based compensation allocated from parent
2,258,869
Net loss
(20,254,834
)
Group equity at September 30, 2009
$
37,995,401
See accompanying notes.
F-40
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Combined
    Statements of Cash Flows
Nine Months
Year
Year
Ended
Ended
Ended
September 30,
December 31,
December 31,
2009
2008
2007
Operating activities
Net loss
$
(20,254,834
)
$
(24,014,472
)
$
(14,882,351
)
Adjustments to reconcile net loss to net cash used in operating
    activities:
Depreciation and amortization
5,799,952
6,646,543
4,064,979
Loss (gain) on sale of property and equipment
792
1,012,779
(742,086
)
Share-based compensation
2,258,869
4,388,941
813,454
Asset impairment write down
—
—
2,873,055
Asset retirement obligations
(644,217
)
(730,436
)
1,244,438
Changes in noncash operating assets and liabilities:
Accounts receivable
(3,506,701
)
1,452,404
(2,541,574
)
Inventories
200,201
620,139
(816,314
)
Prepaid expenses and other current assets
(191,071
)
34,096
(235,371
)
Trade accounts payable and other accrued liabilities
2,390,045
(2,169,229
)
5,147,696
Net cash used in operating activities
(13,946,964
)
(12,759,235
)
(5,074,074
)
Investing activities
Restricted certificates of deposit
509,825
(509,825
)
—
Proceeds from sale of investments
—
—
216,477
Payments for other assets, principally mine development and
    mining rights
(1,631,921
)
(3,194,375
)
(6,879,142
)
Proceeds from sale of property and equipment
210,000
683,912
1,582,346
Payments for property and equipment
(1,346,609
)
(3,187,274
)
(9,712,212
)
Net cash used in investing activities
(2,258,705
)
(6,207,562
)
(14,792,531
)
Financing activities
Contributions from parent
22,703,615
26,511,411
21,670,486
Principal payments on debt
(209,025
)
(1,058,336
)
(939,463
)
Payments on equipment financing
(6,288,921
)
(6,486,278
)
(1,007,250
)
Net cash provided by financing activities
16,205,669
18,966,797
19,723,773
Net decrease in cash and cash equivalents
—
—
(142,832
)
Cash and cash equivalents, beginning of period
—
—
142,832
Cash and cash equivalents, end of period
$
—
$
—
$
—
Supplemental disclosure
Interest paid
$
1,237,268
$
1,055,688
$
245,893
Noncash investing and financing activities
Vendor financing for equipment purchases
$
6,629,614
$
18,025,434
$
10,293,381
See accompanying notes.
F-41
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to Combined Financial Statements
September 30,
    2009 and December 31, 2008
1.
Nature of
    Operations and Significant Accounting Policies
Nature
    of Operations and Basis of Presentation
Phoenix Coal Inc. (PCI) and Phoenix Coal Corporation, a wholly
    owned subsidiary of PCI, (collectively, the Parent) are engaged
    in the development, production, and sale of steam coal to
    utilities and industrial fuel consumers. The Parent is also
    engaged in the development of underground coal reserves. Mining
    activities are currently limited to one reportable business
    segment, which is the Illinois Basin. PCI is a publicly traded
    entity listed on the Toronto Stock Exchange and is headquartered
    in Madisonville, Kentucky, with corporate offices in Louisville,
    Kentucky.
On September 30, 2009, the Parent sold substantially all of
    its operating assets and operations associated with its surface
    coal mining operations in western Kentucky to Oxford Mining
    Company, LLC (Oxford). The assets acquired by Oxford were
    utilized in the operation of multiple surface coal mining
    locations and related support facilities (maintenance shop,
    barge loading facility, and coal preparation plant)
    (collectively, the Company). The assets transferred included
    coal and supplies inventories, coal reserves and related prepaid
    royalties, mining property, plant, and equipment, mining rights,
    coal purchase contracts, and coal sales contracts.
These combined financial statements represent the carved-out
    financial position, results of operations, changes in group
    equity, and cash flows of the Company, combined from different
    legal entities, all of which are wholly owned subsidiaries of
    the Parent. The carved-out financial statements have been
    prepared in accordance with SEC Financial Reporting Manual
    section 2065
Acquisition of Selected Parts of an Entity
    May Result in Less Than Full Financial Statements
and Staff
    Accounting Bulletin (SAB) Topic 1.B.
Allocation of Expenses
    and Related Disclosure in Financial Statements of Subsidiaries,
    Divisions or Lesser Business Components of Another Entity
.
    The carved-out financial statements include allocations of
    certain Parent corporate expenses and intercompany interest
    charges (see Note 2). Management believes that the
    assumptions and estimates used in preparation of the carved-out
    financial statements are reasonable. However, the carved-out
    financial statements may not necessarily reflect the
    Company's financial position, results of operations, or
    cash flows in the future, or what its financial position,
    results of operations, or cash flows would have been if the
    Company had been a stand-alone entity during the periods
    presented. Because of the nature of these carved-out financial
    statements, the Parent's net investment in the Company,
    including amounts due to/from the Parent, is shown as
    "group equity."
The carved-out financial statements have been prepared in
    accordance with accounting principles generally accepted in the
    United States (GAAP). All monetary references expressed in these
    notes are references to United States dollars. All intercompany
    transactions between the Company's locations have been
    eliminated.
Use of
    Estimates
The preparation of the carved-out financial statements in
    conformity with GAAP requires management to make estimates and
    assumptions that affect the reported amounts of assets and
    liabilities and disclosure of contingent assets and liabilities
    at the date of the carved-out financial statements and the
    reported amounts of revenues and expenses during the reporting
    period. Actual results could differ from these estimates. The
    assets and liabilities which require management to make
    significant estimates and assumptions in determining carrying
    values include, but are not limited to, coal inventories,
    property, plant, and equipment, mining rights, mine development,
    mineral reserves, prepaid royalties, provision for income taxes,
    and asset retirement obligations.
F-42
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
1.
Nature of
    Operations and Significant Accounting
    Policies (continued)
Parent
    Sale of Surface Mining Operations
The Parent currently reports its consolidated financial results
    in accordance with Canadian generally accepted accounting
    principles. As these carved-out financial statements represent a
    subset of the Parent's financial activity and are prepared
    under United States GAAP, the accounting treatment and related
    materiality levels of certain transactions may differ from the
    Parent's separately reported consolidated financial
    results. As previously noted, on September 30, 2009, the
    Parent sold substantially all of its operating assets and
    operations associated with its surface coal mining operations in
    western Kentucky to Oxford. The consideration received under the
    terms of the acquisition agreement included cash, payment by
    Oxford of all debt associated with the equipment being sold and
    the assumption of certain asset retirement obligations.
As of June 30, 2009, pursuant to the Canadian Institute of
    Chartered Accountants' Handbook Section 3475,
Disposal of Long-lived Assets and Discontinued Operations,
(a Canadian accounting standard that is consistent with
    Financial Accounting Standards Board (FASB) Accounting Standards
    Codification (ASC) 360,
Property, Plant, and Equipment
),
    the Parent classified these surface mining operations as held
    for sale and wrote down the related assets to the amount
    expected to be realized on sale, resulting in a charge of
    $38,920,000 to the Parent's consolidated statement of
    operations for the six months ended June 30, 2009.
    Concurrent with the closing on September 30, 2009, the
    Parent decreased this estimated loss by $2,680,000 and reported
    a loss on the sale of these surface mining operations of
    approximately $36,240,000 for the nine months ended
    September 30, 2009. For purposes of these financial
    statements, an impairment charge was not recorded in the
    carved-out statement of operations as the surface mining assets
    are, from the Company's perspective, classified as assets
    held for use and therefore tested for impairment based on
    estimated future undiscounted cash flows to be realized from the
    use of the assets. Based on the Company's impairment
    analysis, as of September 30, 2009 the estimated future
    cash flows from the surface mining operations exceeded their
    carrying value.
Cash
    and Cash Equivalents, Including Restricted Cash
The Parent provides cash as needed to support the Company's
    surface mining operations, including restricted cash used to
    collateralize reclamation bonds. Any excess cash collected by
    the Company at the end of each business day is transferred to
    the Parent's bank account. Consequently, the accompanying
    balance sheets do not include any cash balances. Transfers of
    cash between the Company and the Parent are classified as a
    financing activity in the statement of cash flows. At
    December 31, 2008, pending the transfer of mining permits
    related to business acquisitions completed in July 2008,
    restricted certificates of deposit totaling $509,825 were owned
    by the Company and are included in the balance sheet at that
    date.
Trade
    Accounts Receivable
Trade accounts receivables are recorded at the invoiced amount
    and do not bear interest. Customers are primarily investment
    grade companies and quasi-governmental agencies. While the
    Company is subject to credit risk from its trade accounts
    receivable, the Company manages its risk by providing credit
    terms on a case by case basis. As a result, the Company has not
    experienced any instances of nonpayment and does not currently
    require an allowance for doubtful accounts. Management monitors
    customers closely and will record an allowance if trade account
    balances become potentially uncollectible. Subsequent to
    September 30, 2009 and December 31, 2008, the Company
    has collected all of its trade accounts receivable at the
    applicable reporting dates.
F-43
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
1.
Nature of
    Operations and Significant Accounting
    Policies (continued)
Inventory
The Company accounts for coal inventories on a
first-in,
first-out basis and values these inventories at the lower of
    cost and net realizable value with cost determined using average
    cost per ton. Coal inventory values were $25.95 per ton at
    September 30, 2009 and $22.62 per ton at December 31,
    2008. At September 30, 2009 and December 31, 2008, the
    coal inventory was valued at net realizable value.
The Company accounts for parts inventory using the original cost
    on a
first-in,
first-out basis. Parts inventory is included in other current
    assets and totaled $119,484 and $103,555 as of
    September 30, 2009 and December 31, 2008, respectively.
Property,
    Plant, and Equipment
Property, plant, and equipment are stated at cost. Depreciation
    is calculated on the straight-line basis with useful lives that
    range from 5 to 40 years. Depreciation expense for the nine
    months ended September 30, 2009 and the years ended
    December 31, 2008 and 2007 was $4,352,339, $4,362,179, and
    $2,222,516, respectively.
The cost of assets sold, retired, or otherwise disposed of and
    the related accumulated depreciation are eliminated from the
    accounts and any resulting gain or loss is included in
    operations. Expenditures for maintenance and repairs are charged
    to expense as incurred.
Consistent with FASB ASC 360,
Property Plant, and Equipment,
the Company evaluates long-lived assets for impairment when
    events or changes in circumstances indicate that their carrying
    amount may not be recoverable. This impairment testing is based
    on estimated future undiscounted cash flows to be realized from
    the use of the long-lived asset. These future cash flows are
    developed using assumptions that reflect the long-term operating
    plans given management's best estimate of future economic
    conditions, such as revenues, production costs, and reserve
    estimates. A change in these factors could result in a
    modification of the impairment calculation.
Mine
    Development Costs
Mine development costs represent the costs incurred to prepare
    future mine sites for mining and are amortized on the
units-of-production
method. The net book value of mine development costs was
    $2,650,129 and $529,112 at September 30, 2009 and
    December 31, 2008, respectively. Accumulated amortization
    of mine development costs was $471,125 and $505,902 at
    September 30, 2009 and December 31, 2008,
    respectively. Development costs amortized totaled $384,743,
    $665,243, and $455,508 for the nine months ended
    September 30, 2009 and the years ended December 31,
    2008 and 2007, respectively.
Mining
    Rights
Mining rights, which are rights to mine coal properties acquired
    through coal leases, are recorded at cost. Mining rights are
    amortized on the
units-of-production
method. The net book value of mining rights totaled $13,867,610
    and $14,930,480 at September 30, 2009 and December 31,
    2008, respectively. Accumulated amortization of mining rights
    was $3,325,062 and $3,382,180 at September 30, 2009 and
    December 31, 2008, respectively. Mining rights amortization
    totaled $1,062,870, $1,619,121, and $1,386,955 for the nine
    months ended September 30, 2009 and the years ended
    December 31, 2008 and 2007, respectively.
In June 2007, the Crittenden County Coal mining operation was
    closed due to uneconomical mining conditions. As a result of the
    closing, the Company recorded an asset impairment write down
    related to its mining rights of $2,873,055.
F-44
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
1.
Nature of
    Operations and Significant Accounting
    Policies (continued)
Mineral
    Reserves
Mineral reserves, which are coal properties for which the
    Company owns the coal in place, are recorded at cost. At
    September 30, 2009 and December 31, 2008, the net book
    value of mineral reserves totaled $189,434 and was attributable
    to properties where the Company was not currently engaged in
    mining operations and, therefore, the assets were not currently
    being depleted.
Prepaid
    Royalties
Rights to leased coal lands are often acquired through royalty
    payments. Where royalty payments represent prepayments
    recoupable against production, they are recorded as a prepaid
    asset. As mining occurs on these leases, the prepayment is
    charged to cost of sales. Prepaid royalties were $188,602 and
    $216,147 at September 30, 2009 and December 31, 2008,
    respectively.
Asset
    Retirement Obligations
FASB ASC
410-20,
Asset Retirement Obligations
, addresses financial
    accounting and reporting for obligations associated with the
    retirement of tangible long-lived assets and the associated
    asset retirement costs. The Company's asset retirement
    obligation (ARO) liabilities primarily consist of spending
    estimates related to reclaiming surface land and support
    facilities in accordance with federal and state reclamation laws
    as defined by each mining permit.
Revenue
    Recognition
Revenue is recognized when all of the following criteria are
    met: (1) persuasive evidence of an arrangement exists,
    (2) delivery has occurred or services have been rendered,
    (3) the seller's price to the buyer is fixed or
    determinable, and (4) collectability is reasonably assured.
    In the case of coal that is mined and sold, a specific sales
    contract is negotiated with each customer, which includes a
    fixed-price per ton, a delivery schedule, and terms of payment.
Royalty
    Expense
The majority of the coal that the Company mines is owned by
    other entities. The Company acquires the right to mine and sell
    the coal through various leases. These leases require the
    Company to pay a royalty to the owners of the land and the
    minerals being mined. Royalty expense for the nine months ended
    September 30, 2009 and for the years ended
    December 31, 2008 and 2007 was $2,688,647, $3,778,642, and
    $3,386,015, respectively, and is included in selling expenses in
    the statements of operations and comprehensive loss.
Income
    Taxes
The Company files consolidated federal and state income tax
    returns with the Parent. Income tax expense for purposes of
    these combined financial statements is calculated on a separate
    return basis. Deferred income taxes are recorded by applying
    statutory tax rates in effect at the date of the balance sheet
    to differences between the book and tax basis of assets and
    liabilities. Due to the significantly large tax losses generated
    by the Company, management has recorded a valuation allowance
    against its total net deferred tax assets as they do not believe
    it is more-likely-than-not that these assets will be realized.
    The Company's income tax expense for the nine months ended
    September 30, 2009, and the years ended December 31,
    2008 and 2007, consisted of state taxes.
F-45
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
1.
Nature of
    Operations and Significant Accounting
    Policies (continued)
Share-Based
    Compensation
The Parent uses the fair value method for options, warrants, and
    restricted stock granted. The fair value of stock options and
    warrants is determined by the Black-Scholes option pricing model
    with assumptions for risk-free interest rates, dividend yields,
    volatility factors of the expected market price of the
    Parent's common shares and an expected life of the options
    and warrants. The fair value of the instruments granted is
    amortized over their vesting period. The share-based
    compensation expense recorded in these carved-out financial
    statements has been allocated to the Company based on the
    employees who have provided services to the Company during the
    applicable reporting periods and recorded as an expense in the
    statement of operations. The Parent's cost of providing
    these benefits is recorded as a contribution to the
    Company's equity.
Fair
    Value and Financial Instruments
FASB ASC 820 defines fair value as the price that would be
    received to sell an asset or paid to transfer a liability in an
    orderly transaction between market participants at the
    measurement date. At September 30, 2009 and
    December 31, 2008, the fair values of restricted
    certificates of deposit, trade accounts receivable, trade
    accounts payable, and accrued liabilities approximated their
    carrying values because of the short-term nature of these
    financial instruments. At September 30, 2009, the fair
    value of the Company's long-term debt, calculated using the
    present value of the scheduled debt payments, and using a credit
    adjusted risk free rate of 8.25%, was $20,843,900, compared to
    its carrying value at that date of $21,305,458. At
    December 31, 2008, the fair value of the Company's
    long-term debt, calculated using the present value of the
    scheduled debt payments, and using a credit adjusted risk free
    rate of 6.75%, was $21,052,500, compared to its carrying value
    at that date of $21,173,790.
New
    Accounting Standards Issued and Adopted
In September 2009, the FASB issued Accounting Standards Update
    (ASU)
2009-06,
Implementation Guidance on Accounting for Uncertainty in
    Income Taxes and Disclosure Amendments for Nonpublic
    Entities
. ASU
2009-06
amended guidance on certain aspects of FASB ASC 740,
Income
    Taxes
, including application to nonpublic entities, as well
    as application guidance on the accounting for income tax
    uncertainties for all entities. The amendments are applicable to
    all entities that apply FASB ASC 740 as well as those that
    historically had not, such as pass-through and tax-exempt
not-for-profit
entities. The amendments clarify that an entity's tax
    status as a pass-through or tax-exempt
not-for-profit
entity is a tax position subject to the recognition requirements
    of FASB ASC 740 and therefore these entities must use the
    recognition and measurement guidance in FASB ASC 740 when
    assessing their tax positions. The ASU
2009-06
amendments are effective for interim and annual periods ending
    after September 15, 2009. The adoption of the ASU
2009-06
amendments for the nine months ended September 30, 2009 did
    not have a material impact on the Company's financial
    statements.
For the financial statements for the September 30, 2009
    reporting period, the Company adopted amendments to FASB ASC
    805,
Business Combinations
(SFAS No. 141R,
Business Combinations
), issued by the FASB in December
    2007. The FASB ASC 805 amendments apply to all business
    combinations and establish guidance for recognizing and
    measuring identifiable assets acquired, liabilities assumed,
    noncontrolling interests in the acquiree and goodwill. Most of
    these items are recognized at their full fair value on the
    acquisition date, including acquisitions where the acquirer
    obtains control but less than 100% ownership in the acquiree.
    The FASB ASC 805 amendments also require expensing restructuring
    and acquisition-related costs as incurred and establish
    disclosure requirements to enable the evaluation of the nature
    and financial effects of the business combination. Per FASB ASC
805-10-65-1,
these amendments to FASB ASC 805 are effective for business
    combinations with an acquisition date in fiscal years beginning
    after
F-46
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
1.
Nature of
    Operations and Significant Accounting
    Policies (continued)
December 15, 2008. The Company did not complete any
    business acquisitions during the nine months ended
    September 30, 2009.
For the financial statements for the September 30, 2009
    reporting period, the Company adopted amendments to FASB ASC
    855,
Subsequent Events
(SFAS No. 165,
Subsequent Events
), issued by the FASB in May 2009. The
    amendments to FASB ASC 855 establish the accounting for and
    disclosure of events that occur after the balance sheet date but
    before financial statements are issued or are available to be
    issued. The amendments to FASB ASC 855 also require disclosure
    of the date through which an entity has evaluated subsequent
    events and the basis for that date, that is, whether that date
    represents the date the financial statements were issued or were
    available to be issued. The Company evaluated subsequent events
    after the balance sheet date of September 30, 2009 through
    December 18, 2009.
New
    Accounting Standards Issued and Not Yet Adopted
In August 2009, the FASB issued ASU
2009-05,
Measuring Liabilities at Fair Value
. The ASU
2009-05
amendments provide additional guidance on measuring the fair
    value of liabilities, as well as outline alternative valuation
    methods and a hierarchy for their use. The amendments also
    clarify that restrictions preventing the transfer of a liability
    should not be considered as a separate input or adjustment in
    the measurement of its fair value. The ASU
2006-05
amendments are effective as of the beginning of interim and
    annual reporting periods that begin after August 26, 2009.
    The Company does not anticipate these requirements will have a
    material impact on its financial statements.
2.
Preparation
    of Carved-Out Financial Statements
The following allocation policies have been used in the
    preparation of these carved-out financial statements. Unless
    otherwise noted, these policies have been consistently applied
    in the financial statements. In the opinion of management, the
    methods for allocating these costs are reasonable. It is not
    practicable to estimate the costs that would have been incurred
    by the Company if it had been operated on a stand-alone basis.
Specifically
    Identified Expenses
Costs related specifically to the Company have been identified
    and included in the statements of operations and comprehensive
    loss. These expenses include labor and benefits, mining
    supplies, equipment maintenance and reclamation costs. In
    addition, any costs incurred by the Parent which were
    specifically identifiable to a surface mining operation have
    been charged to the Company.
Shared
    Operating Expenses
Historically, the Company has not allocated corporate general
    and administrative services to each operating division. These
    shared services included executive management, accounting,
    information services, engineering, and human resources. For the
    purposes of these carved-out financial statements, these costs
    have been allocated to the Company based primarily on a
    percentage of revenue.
Debt
    and Related Interest Expense
The Parent has funded the acquisition and operating activities
    of the Company, as well as its other operations, through equity
    offerings (including private placement, preferred stock
    offerings, and public stock offerings) and bank and finance
    company debt. Funds used by the Parent for acquisition of the
    Company have been recorded by the Parent as an investment in the
    Company. Funds subsequently provided to, or received
F-47
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
2.
Preparation
    of Carved-Out Financial Statements (continued)
from, the Company after the initial acquisition of its assets
    have been recorded by the Parent in an "intercompany
    account balance."
Historically, the Parent has not charged or credited the Company
    for interest on funds provided to, or received from the Company.
    For the purpose of these carved-out financial statements,
    interest expense has been computed on the average intercompany
    account balance at the Parent's consolidated average
    borrowing rate and included in the Company's statements of
    operations and comprehensive loss. The intercompany balance has
    been contributed by the Parent to the Company at the end of each
    year and therefore has been included in the statement of group
    equity. Average borrowing rates utilized in this calculation
    were 6.9%, 8.4%, and 11.7% for the nine months ended
    September 30, 2009 and the years ended December 31,
    2008 and 2007, respectively.
Beginning in September 2007, the Company began executing debt
    agreements directly with equipment finance companies. Interest
    expense related to equipment financed debt has also been
    included in the carved-out statements.
3.
Acquisitions
C&R
    Coal Inc.
In July 2008, the Parent, through one of its surface mining
    subsidiaries, purchased all of the outstanding common shares of
    C&R Coal Inc. (C&R) for cash consideration of
    $2,051,000. In addition, under the terms of the agreement, the
    Company will pay the former owners a royalty of $0.60 per ton
    for each ton of coal sold from the C&R mines. At the
    acquisition date, the current mining area, Beech Creek and Beech
    Creek South, contained approximately 450,000 reserve tons. The
    Company also acquired other leases in the transaction from
    C&R and R&G Leasing, LLC, a company that is
    affiliated with C&R through common ownership. At the
    acquisition date, the Company estimated the leases contained
    approximately 1,500,000 tons of coal.
The cost of the C&R acquisition was allocated to the
    following identifiable net assets:
Current assets and restricted certificates of deposit
$
1,281,000
Mining equipment
859,000
Mining rights and mine development costs
2,387,000
Assumed liabilities
(2,476,000
)
$
2,051,000
Prior to July 2008, the Parent operated and managed
    C&R's mines under a management and administrative
    services agreement. Since the Parent did not own nor control
    C&R, it did not consolidate its operating results prior to
    July 2008, and recorded funds invested and services provided in
    other assets and accounts receivable on its balance sheet.
Renfro
    Equipment, Inc.
In July 2008, the Parent, on behalf of the Company, purchased
    all of the outstanding common shares of Renfro Equipment, Inc.
    (Renfro) for total cash consideration of $1,129,000.
    Additionally, the Parent incurred $18,000 of closing costs. The
    purchase included all assets and liabilities of Renfro, except
    certain equipment and associated debt specifically excluded from
    the purchase. Based on exploration completed by the Parent,
    management estimated that Renfro controlled approximately
    1.5 million tons of coal via lease at acquisition date.
    Additionally, if by July 2010, the Company acquires at least
    1.5 million reserve tons as defined by Canadian Securities
    Administrators' National Instrument
43-101
due
    to the direct efforts of the sellers (the Additional Reserves),
    the Company will pay the sellers $1,000,000 for the first
    1.5 million tons of reserves,
F-48
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
3.
Acquisitions (continued)
plus $0.50 per ton for each reserve ton in excess of
    1.5 million. The purchase agreement defines a specific
    territory from which the Additional Reserves can be acquired.
    The acquisition of the Additional Reserves is on terms and
    conditions acceptable to the Company in its sole, reasonable
    discretion.
The cost of the Renfro acquisition was allocated to the
    following identifiable net assets:
Current assets and restricted certificates of deposit
$
334,000
Mining equipment
429,000
Mining rights and mine development costs
1,770,000
Assumed liabilities
(1,386,000
)
$
1,147,000
Charolais
    Corporation
In January 2007, the Parent acquired assets and shares of the
    Charolais Corporation and related entities. The purchase price
    paid to the seller was $21,735,000. In addition, the Parent
    incurred $189,000 of transaction costs related to the purchase
    for total consideration of $21,924,000. Included in the
    Charolais acquisition was the purchase of the Rock Crusher Fines
    (RCF) operation, which was not purchased on behalf of the
    Company. The RCF operation is not included in these carved-out
    financial statements as it was a fine coal recovery operation
    and all assets utilized at RCF were sold in 2007 and not
    included in the Company's operations. The portion of the
    Charolais purchase price attributed to the RCF operation was
    $6,844,000.
The purchase price was allocated as follows:
Total
Charolais
Charolais
Acquisition
Acquisition
Allocation
Allocation
Excluding RCF
Real property
$
557,000
$
557,000
Plant and equipment
13,483,000
7,939,000
Mining rights and mineral reserves
8,705,000
7,405,000
Asset retirement obligations
(821,000
)
(821,000
)
$
21,924,000
$
15,080,000
F-49
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
4.
Property,
    Plant, and Equipment, Net
Property, plant, and equipment consists of the following at
    September 30, 2009 and December 31, 2008:
September 30,
December 31,
2009
2008
Land
$
636,154
$
599,654
Building and improvements
480,885
25,424
Preparation plant
3,683,996
3,084,768
Mining equipment
52,483,183
45,886,694
Loading and marine transport equipment
1,775,000
1,775,000
Office equipment
355,557
370,450
Vehicles
65,965
65,965
59,480,740
51,807,955
Less accumulated depreciation and amortization
10,904,663
6,644,971
$
48,576,077
$
45,162,984
In 2008 and 2007, the Company sold several pieces of noncore
    property and equipment, generating gross proceeds of $683,912
    and $1,582,346, respectively. The Company recorded a loss of
    $1,012,779 related to these sales in 2008, and a gain of
    $742,086 in 2007. There were no significant sales of property
    and equipment for the nine months ended September 30, 2009.
5.
Asset
    Retirement Obligations
The Company estimates its ARO liabilities for final reclamation
    and mine closure based upon detailed engineering calculations of
    the amount and timing of the future cash spending for a third
    party to perform the required work. Spending estimates are
    escalated for inflation and then discounted at the
    credit-adjusted risk-free rate, which ranged from 6.12% to 7.64%
    at September 30, 2009 and December 31, 2008. Total
    estimated undiscounted future cash spending related to the ARO
    liabilities totaled $4,900,000 at September 30, 2009 with
    spending estimated to occur from 2009 to 2016. Total estimated
    undiscounted future cash spending related to the ARO liabilities
    totaled $5,142,000 at December 31, 2008. The Company
    records an ARO asset associated with the discounted liability
    for final reclamation and mine closure as a mine development
    cost. The obligation and corresponding asset are recognized in
    the period in which the liability is incurred. The ARO asset is
    amortized on the
units-of-production
method over its expected life and the ARO liability is accreted
    to the projected spending date. As changes in estimates occur
    (such as mine plan revisions, changes in estimated costs or
    changes in timing of the performance of reclamation activities),
    the revisions to the obligation and asset are recognized at the
    appropriate credit-adjusted risk-free rate. The Company also
    recognizes an obligation for contemporaneous reclamation
    liabilities incurred as a result of surface mining.
    Contemporaneous reclamation consists primarily of grading,
    topsoil replacement, and revegetation of backfilled pit areas.
F-50
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
5.
Asset
    Retirement Obligations (continued)
A progression of the reclamation liability recorded on the
    balance sheet is as follows:
Nine Months
Ended
Year Ended
September 30,
December 31,
2009
2008
Balance at beginning of period
$
4,324,000
$
3,757,353
Liabilities acquired
—
1,131,000
Liabilities incurred
846,295
166,083
Accretion
188,719
189,132
Liabilities settled
(832,936
)
(919,568
)
Total asset retirement obligation
4,526,078
4,324,000
Less current portion
1,627,800
1,958,000
$
2,898,278
$
2,366,000
6.
Debt
Long-term debt consists of the following at September 30,
    2009 and December 31, 2008:
September 30,
December 31,
2009
2008
Bank notes payable, interest at 5.50% to 8.90%. Payments are
    made in monthly installments. The loans are collateralized by
    various pieces of equipment and mature April 2010
$
47,643
$
105,109
Equipment notes payable, interest at 5.25% to 8.75%. Payments
    are made in monthly installments. The loans are collateralized
    by related assets with a net book value of $31,184,000 as of
    September 30, 2009 and have maturity dates from August 2010
    to March 2013
21,257,815
21,068,681
Total long-term debt
21,305,458
21,173,790
Less current portion
8,224,486
6,532,045
$
13,080,972
$
14,641,745
Expected maturities of notes payable based on years ending
    December 31 are as follows:
2009 (remaining three months)
$
2,013,455
2010
8,147,660
2011
7,366,999
2012
3,604,101
2013
173,243
$
21,305,458
As previously discussed in Note 1, on September 30,
    2009, the Parent sold substantially all of its operating assets
    and operations associated with its surface coal mining
    operations in western Kentucky to Oxford. In conjunction with
    the transactions, Oxford paid off all the outstanding debt as of
    September 30, 2009.
F-51
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
7.
Income
    Taxes
The components of income tax expense for the nine months ended
    September 30, 2009 and the years ended December 31,
    2008 and 2007 are:
Nine Months
Ended
Year Ended
Year Ended
September 30,
December 31,
December 31,
2009
2008
2007
Current
$
16,081
$
37,838
$
70,155
The expense for income taxes includes federal and state income
    taxes currently payable or receivable and those deferred or
    prepaid because of temporary differences between the financial
    statement and the tax basis of assets and liabilities. The
    Company records income taxes under the liability method. Under
    this method, deferred income taxes are recognized for the
    estimated deferred tax effects of differences between the tax
    basis of assets and liabilities and their financial reporting
    amounts based on enacted laws.
At September 30, 2009 and December 31, 2008, the
    Company had deferred tax assets of approximately $28,862,000 and
    $20,263,000 and deferred tax liabilities of $12,471,000 and
    $10,761,000, respectively. The Company's deferred tax
    assets consist principally of net operating loss carryforwards,
    while deferred tax liabilities relate primarily to temporary
    timing differences for amortization of mining rights and
    depreciation. As a result of losses from operations, management
    has recorded a valuation allowance against the total net
    deferred tax asset as they do not believe it is
    more-likely-than-not these assets will be realized.
8.
Major
    Customers
For the nine months ended September 30, 2009 and the years
    ended December 31, 2008 and 2007 the Company's
    concentration of major customers was as follows:
Nine Months
Ended
Year Ended
Year Ended
September 30,
December 31,
December 31,
2009
2008
2007
Number of customers whose sales each exceeded 10% of total
    revenue
4
3
3
Percentage of total revenue
98
%
86
%
83
%
Accounts receivable due at period end
$
6,349,485
$
2,410,395
$
2,285,240
The Company has never experienced nonpayment from any of these
    customers. All amounts due from these customers at
    September 30, 2009 have subsequently been collected.
9.
Commitments
    and Contingent Liabilities
In the normal course of business, the Company makes various
    commitments and incurs certain contingent liabilities, including
    liabilities related to asset retirement obligations and
    financial obligations in connection with mining permits that are
    not reflected in the balance sheet. The Company does not
    anticipate any material losses as a result of these
    transactions. In accordance with Kentucky state law, the Company
    is required to post reclamation bonds to assure that reclamation
    work is completed. Outstanding reclamation bonds totaled
    approximately $12 million at September 30, 2009 and
    approximately $11 million at December 31, 2008. These
    bonds are secured by letters of credit or certificates of
    deposit issued by a bank equal to the amount of the outstanding
    reclamation bonds, and are typically provided by the Parent.
    However, at December 31, 2008, pending the transfer of
    certain mining permits related to the C&R and Renfro
    acquisitions, restricted certificates of deposit totaling
    $509,825 were held by the Company and included in the balance
    sheet. Subsequent to December 31, 2008 these restricted
    certificates of deposit were replaced by letters of credit
    provided by the Parent.
F-52
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
9.
Commitments
    and Contingent Liabilities (continued)
A significant amount of the Company's coal reserves are
    controlled through leasing arrangements and noncancellable
    royalty lease agreements under which future minimum lease
    payments are due.
In the ordinary course of business, the Company enters into
    contracts to purchase diesel fuel from local suppliers for
    physical delivery at specified prices. Pursuant to these
    contracts, the Company does not own a futures or options
    position in the purchased fuel. As of September 30, 2009,
    the Company had executed purchase contracts for a total of
    1,890,000 gallons to be delivered in 2009 and 2010 at a total
    cost of $4,206,048, or an average weighted price of $2.23 per
    gallon.
In 2007, the Company entered into a master coal purchase and
    sale agreement (the Master Agreement) to purchase coal fines
    recovered and processed by Covol Fuels No. 2, LLC (Covol)
    from two coal slurry reserve areas in Muhlenberg County,
    Kentucky. On July 6, 2009, the Company executed an
    amendment to the Master Agreement (the Amended Master Agreement)
    revising the annual purchase and sale tonnage commitments. The
    term of the Amended Master Agreement runs through the exhaustion
    of the reserves (the Term). During the Term of the Amended
    Master Agreement, by July 1 of each year, the Company and
    Covol will agree to the annual tonnage commitment (the
    Commitment) that Covol will produce and that the Company will
    purchase for the next calendar year. For the calendar year 2010
    the Commitment cannot be less than 360,000 tons and for
    subsequent years the Commitment cannot be less than 400,000
    tons. Additionally, the Company has the first right of refusal
    to purchase any tons produced by Covol in excess of the
    Commitment, but up to 720,000 tons annually.
In June 2009, the Company entered into a coal supply agreement
    with an Illinois Basin producer to purchase 20,000 tons of coal
    per month from July 2009 through December 2009. Upon mutual
    agreement of the parties to the coal supply agreement, the term
    of the agreement may be extended to December 31, 2010.
    Subsequent to September 30, 2009, this agreement was
    extended to June 30, 2010.
As part of the Renfro Equipment Inc. acquisition in July 2008,
    the Company agreed that if, by July 31, 2010, it acquires
    at least 1.5 million reserve tons as defined by Canadian
    Securities Administrators' National Instrument
43-101
(NI
43-101)
due
    to the direct efforts of the sellers (Additional Reserves), the
    Company will pay the sellers $1,000,000 for the first
    1.5 million tons of reserves, plus $0.50 per ton for each
    reserve ton in excess of 1.5 million. The acquisition
    closing documents define a specific territory from which the
    Additional Reserves can be acquired. The acquisition of the
    Additional Reserves must be on terms and conditions acceptable
    to the Company in its sole, reasonable discretion. As of
    September 30, 2009, the sellers had provided several
    mineral leases to the Company. However, the analysis and
    drilling that is required to qualify these properties as reserve
    tons under the definition of NI
43-101
is in
    its early stages. Therefore, it is not yet probable that the
    sellers will deliver 1.5 million reserve tons to the
    Company, so no liability has been currently accrued on the
    balance sheet to the sellers.
10.
Stock
    Incentive Plans
PCI adopted a shareholder-approved stock option plan (the 2008
    Plan) on May 20, 2008, which became effective in June 2008.
    PCC had a stock incentive plan authorized by its Board of
    Directors in 2004 (the 2004 Plan) to grant options to its
    employees (including officers), directors, and consultants. In
    June 2008, each stock option issued under the 2004 Plan was
    cancelled and extinguished and the holder received a replacement
    option to purchase that number of common shares of PCI equal to
    the number of PCC common shares that the holder could purchase
    under the 2004 Plan.
The 2008 Plan is designed to advance the interests of the
    Company by encouraging employees, officers, directors, and
    consultants to have equity participation in the Parent through
    the acquisition of common shares. The 2008 Plan has been used to
    grant options to the Company's employees, officers,
    directors, and
F-53
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
10.
Stock
    Incentive Plans (continued)
consultants. Options granted under the 2008 Plan may be
    "incentive stock options" or "nonqualified stock
    options."
For options granted under the 2008 Plan, the exercise price per
    common share is not to be less than the market price of the
    common shares at the time of the grant. The exercise period for
    each stock option is not to be more than ten years (five years
    in the case of an incentive stock option granted to a person who
    owns more than 10% of the issued and outstanding common shares
    of the Parent). Options may be granted subject to vesting
    requirements. Stock options granted under the 2004 Plan were
    generally subject to vesting provisions of 25% at the end of
    year one from the date of grant and then evenly over the
    following 48 months. The options were granted at a price
    equal to 100% of the fair value of the Company's common
    shares on the date of grant and have a ten-year term.
Unless terminated earlier by the Parent's Board of
    Directors, the 2008 Plan will remain in effect until all options
    granted under the 2008 Plan have been exercised or forfeited, or
    have expired. However, no new options may be granted under the
    2008 Plan more than ten years from the date the Plan was
    originally adopted.
Compensation cost of stock option grants is recognized
    straight-line over the options' vesting periods.
    Compensation expense related to stock options for the nine
    months ended September 30, 2009 and the years ended
    December 31, 2008 and 2007 was $2,258,869, $4,388,941, and
    $813,454, respectively. Under the terms of the 2008 Plan, and as
    approved by the Board of Directors of the Parent, the sale of
    the surface mining assets to Oxford caused all options
    outstanding under the 2008 Plan to become fully vested and all
    remaining unrecognized compensation expense totaling
    approximately $547,000 was charged to the statement of
    operations and comprehensive loss in the third quarter 2009.
The options' fair value was determined using the
    Black-Scholes option-pricing model. Expected volatilities are
    based on comparable company historical share price movement and
    other factors. The cost relating to the stock-based compensation
    plans is included in general and administrative expenses in the
    accompanying combined statements of operations and comprehensive
    loss.
2009
2008
2007
Options
Options
Options
Weighted-average fair value per share of options granted
$
0.08 per share
$
0.64 per share
$
0.73 per share
Assumptions (weighted-average):
Risk free interest rate
2.75
%
3.98
%
4.37
%
Expected dividend yield
0.00
0.00
0.00
Expected volatility
0.40
0.40
0.40
Expected option life (in years)
10.00
10.00
10.00
11.
Sales
    Contract Termination
On March 3, 2009, the Company entered into a mutual release
    and settlement agreement with one of its customers to terminate
    a coal supply agreement for delivery of coal in 2009 and 2010
    (the 2009/2010 Supply Agreement). In consideration for
    terminating the 2009/2010 Supply Agreement, the Company paid the
    customer $3,000,000 in cash. The payment relieved the Company of
    the obligation to deliver approximately 970,000 tons of coal,
    470,000 in 2009 and 500,000 in 2010. In addition, the Company
    agreed to make up in 2009 approximately 170,000 tons of
    shipments that were not delivered in 2008 under a separate coal
    supply agreement dated January 1, 2008 (the 2008 Supply
    Agreement). In return for fulfilling the 2008 Supply
F-54
Table of Contents
Carved-Out
    Surface Mining Operations of Phoenix Coal Inc.
Notes to
    Combined Financial
    Statements — (Continued)
11.
Sales
    Contract Termination (continued)
Agreement, the customer agreed to change the guaranteed monthly
    average BTU specification from 11,500 to 11,200. The $3,000,000
    payment has been charged to the statement of operations and
    comprehensive loss.
12.
Defined
    Contribution Plan
The Company has a retirement savings trust plan in effect for
    substantially all full-time employees. The Plan also contains a
    deferred salary arrangement under IRC Section 401(k). Under
    the deferred salary arrangement, employees can contribute up to
    100% of their earnings and the Company may match a portion of
    the employee contributions. The Company paid and charged to
    operations Plan contributions of approximately $497,000,
    $621,000, and $508,000 for the nine months ended
    September 30, 2009 and the years ended December 31,
    2008 and 2007, respectively.
13.
Related-Party
    Transactions
The Company is wholly owned by the Parent and its subsidiaries.
    The Parent has allocated certain overhead costs associated with
    general and administrative services, including executive
    management, accounting, information services, engineering, and
    human resources support to the Company. These overhead costs
    were allocated based primarily on a percentage of revenue, which
    management believes is reasonable.
Historically, interest costs related to intercompany debt have
    not been charged or credited to the Parent or the Company. For
    the purpose of these carved-out financial statements, interest
    expense has been computed on the average intercompany account
    balance at the Parent's consolidated average borrowing rate
    and included in the carved-out statements.
Allocated overhead costs and interest expense on intercompany
    debt included in the statement of operations are as follows:
Nine Months
Ended
Year Ended
Year Ended
September 30,
December 31,
December 31,
2009
2008
2007
Overhead costs
$
6,947,484
$
10,362,888
$
5,170,340
Interest expense
1,363,605
755,592
(159,577
)
14.
Subsequent
    Events
On November 4, 2009, the Company received a state mining
    permit from the Kentucky Department of Natural Resources for its
    Highway 431 reserve. With this permit, the Company has secured
    all of the necessary permits required to begin mining on the
    Highway 431 property in Muhlenberg County, Kentucky.
F-55
Table of Contents
APPENDIX A
Third
    Amended and Restated Agreement
of
    Limited Partnership of Oxford Resource Partners, LP
[to come]
A-1
Table of Contents
APPENDIX B
Glossary of Terms
adjusted operating surplus:
Adjusted operating
    surplus, with respect to any period, consists of:
    (i) operating surplus generated with respect to that
    period; less (ii) any net decrease in cash reserves for
    operating expenditures with respect to that period not relating
    to an operating expenditure made with respect to that period;
    plus (iii) any net decrease made in subsequent periods in
    cash reserves for operating expenditures initially established
    with respect to that period to the extent such decrease results
    in a reduction in adjusted operating surplus in subsequent
    periods; plus (iv) any net increase in cash reserves for
    operating expenditures with respect to that period required by
    any debt instrument for the repayment of principal, interest or
    premium.
available cash:
Available cash generally
    means, for any quarter, the sum of (i) all cash and cash
    equivalents on hand at the end of the quarter; plus,
    (ii) if our general partner so determines, all or any
    portion of the cash on hand on the date of determination of
    available cash for the quarter; less the amount of cash reserves
    established by our general partner at the date of determination
    of available cash for the quarter to (x) provide for the
    proper conduct of our business (including reserves for our
    future capital expenditures and anticipated future credit needs)
    subsequent to that quarter; (y) comply with applicable law,
    any of our debt instruments or other agreements; or
    (z) provide funds for distributions to our unitholders and
    to our general partner for any one or more of the next four
    quarters.
base-load power plants:
The electrical
    generation facilities used to meet some or all of a given
    region's continuous energy demand and produce energy at a
    constant rate.
Btu:
British thermal unit, or Btu, is the
    amount of heat required to raise the temperature of one pound of
    water one degree Fahrenheit.
capital account:
The capital account
    maintained for a partner under the partnership agreement. The
    capital account in respect of a general partner unit, a common
    unit, a subordinated unit, an incentive distribution right or
    any other partnership interest will be the amount which that
    capital account would be if that general partner unit, common
    unit, subordinated unit, incentive distribution right or other
    partnership interest were the only interest in Oxford Resource
    Partners, LP held by a partner.
capital surplus:
All amounts of available cash
    distributed by Oxford Resource Partners, LP on any date from any
    source will be deemed to be operating surplus until the sum of
    all amounts of available cash previously distributed to the
    partners equals operating surplus from the closing date of this
    offering through the close of the immediately preceding quarter.
    Any remaining amounts of available cash distributed on such date
    will be deemed "capital surplus."
closing price:
For common units, the last sale
    price on a day, regular way, or in case no sale takes place on
    that day, the average of the closing bid and asked prices on
    that day, regular way, as reported in the principal consolidated
    transaction reporting system for securities listed on the
    principal national securities exchange on which the common units
    are listed. If the common units are not listed on any national
    securities exchange, the last quoted price on that day. If no
    quoted price exists, the average of the high bid and low asked
    prices on that day in the
over-the-counter
market, as reported by the New York Stock Exchange or any other
    system then in use. If on any day the common units are not
    quoted by any organization of that type, the average of the
    closing bid and asked prices on that day as furnished by a
    professional market maker making a market in the common units
    selected by our general partner. If on that day no market maker
    is making a market in the common units, the fair value of the
    common units on that day as determined by our general partner.
common unit arrearage:
The amount by which the
    minimum quarterly distribution for a quarter during the
    subordination period exceeds the distribution of available cash
    from operating surplus actually made for that quarter on a
    common unit, cumulative for that quarter and all prior quarters
    during the subordination period.
compliance coal:
A coal or a blend of coals
    that meets sulfur dioxide emission standards for air quality
    without the need for flue gas desulfurization.
B-1
Table of Contents
current market price:
For any class of units
    as of any date, the average of the daily closing prices for the
    20 consecutive trading days immediately prior to that date.
dozer:
A large, powerful tractor having a
    vertical blade at the front end for moving earth, rocks, etc.
GAAP:
Generally accepted accounting principles
    in the United States.
highwall:
The unexcavated face of exposed
    overburden and coal in a surface mine or in a face or bank on
    the uphill side of a contour mine excavation.
incentive distribution right:
A non-voting
    limited partner interest initially issued to the general
    partner. An incentive distribution right will confer upon its
    holder only the rights and obligations specifically provided in
    the partnership agreement for incentive distribution rights.
incentive distributions:
The distributions of
    available cash from operating surplus made to holders of the
    incentive distribution rights.
industrial boilers:
Closed vessels that use a
    fuel source to heat water or generate steam for industrial
    heating and humidification applications.
interim capital transactions:
The following
    transactions: (i) borrowings, (ii) sales of equity and
    debt securities, (iii) sales or other dispositions of
    assets outside the ordinary course of business,
    (iv) capital contributions received, (v) corporate
    reorganizations or restructurings and (vi) the termination
    of interest rate hedge contracts or commodity hedge contracts
    prior to the termination date specified therein (provided that
    cash receipts from any such termination will be included in
    operating surplus in equal quarterly installments over the
    remaining scheduled life of such contract).
limestone:
A rock predominantly composed of
    the mineral calcite (calcium carbonate (CaCO2)).
metallurgical coal:
The various grades of coal
    suitable for carbonization to make coke for steel manufacture.
    Its quality depends on four important criteria: volatility,
    which affects coke yield; the level of impurities including
    sulfur and ash, which affects coke quality; composition, which
    affects coke strength; and basic characteristics, which affect
    coke oven safety. Metallurgical coal typically has a
    particularly high Btu but low ash and sulfur content.
operating expenditures:
All of our cash
    expenditures (or our proportionate share of expenditures in the
    case of subsidiaries that are not wholly owned), including, but
    not limited to, taxes, reimbursements of expenses to our general
    partner, interest payments, payments made in the ordinary course
    of business under interest rate hedge contracts and commodity
    hedge contracts, estimated maintenance capital expenditures and
    non-pro rata repurchases of units (other than those made with
    the proceeds of an interim capital transaction), provided that
    operating expenditures will not include: payments (including
    prepayments and prepayment penalties) of principal of and
    premium on indebtedness; expansion capital expenditures; actual
    maintenance capital expenditures; payment of transaction
    expenses (including taxes) relating to interim capital
    transactions; or distributions to partners.
operating surplus:
The total of
    $      million; plus all of our
    cash receipts after the closing of this offering, excluding cash
    from interim capital transactions; less all of our operating
    expenditures after the closing of this offering; less the amount
    of cash reserves established by our general partner prior to the
    date of determination of available cash to provide funds for
    future operating expenditures. Operating surplus does not
    reflect actual cash on hand that is available for distribution
    to our unitholders.
probable (indicated) reserves:
Reserves for
    which quantity and grade
and/or
quality are computed from information similar to that used for
    proven (measured) reserves, but the sites for inspection,
    sampling, and measurement are farther apart or are otherwise
    less adequately spaced. The degree of assurance, although lower
    than that for proven (measured) reserves, is high enough to
    assume continuity between points of observation.
proven (measured) reserves:
Reserves for which
    (i) quantity is computed from dimensions revealed in
    outcrops, trenches, workings or drill holes; (ii) grade
and/or
quality are computed from the results of detailed sampling; and
    (iii) the sites for inspection, sampling and measurement
    are spaced so closely and the geologic character is so well
    defined that size, shape, depth and mineral content of reserves
    are well-established.
B-2
Table of Contents
reclamation:
The restoration of mined land to
    original contour, use or condition.
reserve:
That part of a mineral deposit that
    could be economically and legally extracted or produced at the
    time of the reserve determination.
scrubbed power plant:
A power plant that uses
    scrubbers to clean the gases that pass through its smokestacks.
scrubbers:
Air pollution control devices that
    can be used to remove some particulates and chemical compounds
    from industrial exhaust streams.
selective catalytic reduction, or SCR,
    device:
A means of converting nitrogen oxides,
    also referred to as NOx, with the aid of a catalyst into
    diatomic nitrogen, N2, and water, H2O.
spoil-piles:
Earth and rock removed from a
    coal deposit and temporarily stored during excavation.
steam coal:
Coal used by power plants and
    industrial steam boilers to produce electricity, steam or both.
subordination period:
The subordination period
    will begin upon the date of this offering and will extend until
    the first business day of any quarter beginning after a date
    determined by the conflicts committee of the board of directors
    of our general partner, that each of the following tests are
    met: (i) distributions of available cash from operating
    surplus on each of the outstanding common units, subordinated
    units and general partner units equaled or exceeded the minimum
    quarterly distribution for each of the three consecutive,
    non-overlapping four-quarter periods immediately preceding that
    date; (ii) the "adjusted operating surplus"
    generated during each of the three consecutive, non-overlapping
    four-quarter periods immediately preceding that date equaled or
    exceeded the sum of the minimum quarterly distributions on all
    of the outstanding common units, subordinated units and general
    partner units during those periods on a fully diluted basis; and
    (iii) there are no arrearages in payment of the minimum
    quarterly distribution on the common units. Notwithstanding the
    foregoing, the subordination period shall terminate and all of
    the subordinated units will convert into common units on a
one-for-one
basis if each of the following occurs: (i) distributions of
    available cash from operating surplus on each of the outstanding
    common units, subordinated units and general partner units
    equaled or exceeded 150% of the minimum quarterly distribution
    for each calendar quarter in the immediately preceding
    four-quarter period; (ii) the "adjusted operating
    surplus" generated during each calendar quarter in the
    immediately preceding four-quarter period equaled or exceeded
    150% of the minimum quarterly distribution on each of the
    outstanding common units, subordinated units and general partner
    units during that period on a fully diluted basis; and
    (iii) there are no arrearages in payment of the minimum
    quarterly distributions on the common units.
tipple:
A structure where coal is cleaned and
    loaded in railroad cars or trucks.
total maximum daily load:
A calculation of the
    maximum amount of a pollutant that a body of water can receive
    per day and still safely meet water quality standards.
units:
Refers to both common units and
    subordinated units.
B-3
Table of Contents
Oxford
    Resource Partners, LP
Common
    Units
Representing
    Limited Partner Interests
Prospectus
,
    2010
Barclays
    Capital
Citi
Until          ,
    2010 (25 days after the date of this prospectus), all dealers
    that buy, sell or trade our common units, whether or not
    participating in this offering, may be required to deliver a
    prospectus. This is in addition to the dealers' obligation
    to deliver a prospectus when acting as underwriters and with
    respect to their unsold allotments or subscriptions.
Table of Contents
PART II
INFORMATION
    NOT REQUIRED IN THE PROSPECTUS
Item 13.
Other
    Expenses of Issuance and Distribution.
Set forth below are the expenses (other than the underwriting
    discount) expected to be incurred in connection with the
    issuance and distribution of the securities registered hereby.
    With the exception of the SEC registration fee, the FINRA filing
    fee and the NYSE listing fee, the amounts set forth below are
    estimates.
SEC registration fee
$
17,825
FINRA filing fee
25,500
NYSE listing fee
*
Printing and engraving expenses
*
Fees and expenses of legal counsel
*
Accounting fees and expenses
*
Transfer agent fees
*
Miscellaneous
*
Total
$
*
*
To be provided by amendment.
Item 14.
Indemnification
    of Directors and Officers.
The section of the prospectus entitled "The Partnership
    Agreement — Indemnification" discloses that we
    will generally indemnify officers, directors and affiliates of
    our general partner to the fullest extent permitted by the law
    against all losses, claims, damages or similar events and is
    incorporated herein by this reference. Reference is also made to
    the underwriting agreement to be filed as an exhibit to this
    registration statement, which provides for the indemnification
    of Oxford Resource Partners, LP and our general partner,
    their officers and directors, and any person who controls Oxford
    Resource Partners, LP and our general partner, including
    indemnification for liabilities under the Securities Act.
    Subject to any terms, conditions or restrictions set forth in
    the partnership agreement,
Section 17-108
of the Delaware Revised Uniform Limited Partnership Act empowers
    a Delaware limited partnership to indemnify and hold harmless
    any partner or other person from and against all claims and
    demands whatsoever. As of the consummation of this offering, the
    general partner of the registrant will maintain directors and
    officers liability insurance for the benefit of its directors
    and officers.
Item 15.
Recent
    Sales of Unregistered Securities.
On August 27, 2007, in connection with the formation of the
    partnership, we received (1) a contribution of
    approximately $35.7 million in cash from AIM Oxford in
    exchange for the issuance of 3,185,000 Class B common units
    to AIM Oxford, (2) a contribution of approximately
    $19.2 million in equity in Oxford Mining Company from
    C&T Coal in exchange for cash and the issuance of 1,715,000
    Class B common units to C&T Coal and (3) a
    contribution of approximately $1.1 million in cash from
    Oxford Resources GP, LLC in exchange for the issuance to Oxford
    Resources GP, LLC of 100,000 general partner units and the
    incentive distribution rights, which rights will become
    effective upon an initial public offering. These transactions
    were exempt from registration under Section 4(2) of the
    Securities Act of 1933. The number of units set forth above
    reflect a 5,000 to 1 units split that was authorized by our
    general partner on October 23, 2007.
On March 27, 2008, we entered into a contribution agreement
    with Oxford Resources GP, LLC and AIM Oxford. Pursuant to this
    contribution agreement, we received a contribution of
    approximately $8.8 million from AIM Oxford as consideration
    for the issuance to AIM Oxford of 787,500 Class B common
    units. We also received a contribution of approximately $180,000
    from Oxford Resources GP, LLC as consideration for
II-1
Table of Contents
the issuance to Oxford Resources GP, LLC of approximately 16,071
    general partner units. These transactions were exempt from
    registration under Section 4(2) of the Securities Act of
    1933.
On September 26, 2008, we entered into a contribution
    agreement with Oxford Resources GP, LLC, C&T Coal and AIM
    Oxford. Pursuant to this contribution agreement, we received a
    contribution of approximately $686,000 from C&T Coal and a
    contribution of $1.3 million from AIM Oxford as
    consideration for the issuance to C&T Coal and AIM Oxford
    of 61,250 Class B common units and 113,750 Class B
    common units, respectively. We also received a contribution of
    approximately $40,000 from Oxford Resources GP, LLC as
    consideration for the issuance to Oxford Resources GP, LLC of
    approximately 3,571 general partner units. These transactions
    were exempt from registration under Section 4(2) of the
    Securities Act of 1933.
On August 28, 2009, we entered into a contribution
    agreement with C&T Coal and AIM Oxford. Pursuant to this
    contribution agreement, we received a contribution of
    approximately $1.1 million from C&T Coal and a
    contribution of approximately $2.0 million from AIM Oxford
    as consideration for the issuance to C&T Coal and AIM
    Oxford of 35 deferred participation units and 65 deferred
    participation units, respectively. These transactions were
    exempt from registration under Section 4(2) of the
    Securities Act of 1933.
On September 28, 2009, we entered into a contribution and
    conversion agreement with Oxford Resources GP, LLC, C&T
    Coal and AIM Oxford. Pursuant to this contribution and
    conversion agreement, we received a contribution of
    approximately $1.5 million from C&T Coal and a
    contribution of approximately $6.9 million from AIM Oxford
    as consideration for the issuance to C&T Coal and AIM
    Oxford of 84,337 Class B common units and 393,575
    Class B common units, respectively. We also received a
    contribution of approximately $231,224 from Oxford Resources GP,
    LLC as consideration for the issuance to Oxford Resources GP,
    LLC of approximately 13,266 general partner units. In connection
    with the execution of this contribution and conversion
    agreement, C&T Coal and AIM Oxford elected to convert their
    deferred participation units into approximately 60,241
    Class B common units and approximately 111,876 Class B
    common units, respectively. These transactions were exempt from
    registration under Section 4(2) of the Securities Act of
    1933.
Item 16.
Exhibits
    and Financial Statement Schedules.
(a) The following documents are filed as exhibits to this
    registration statement:
Exhibit
Number
Description
1
.1**
—
Form of Underwriting Agreement
3
.1*
—
Certificate of Limited Partnership of Oxford Resource Partners,
    LP
3
.2**
—
Form of Third Amended and Restated Agreement of Limited
    Partnership of Oxford Resource Partners, LP  (included as
Appendix A
to the Prospectus)
5
.1**
—
Opinion of Latham & Watkins LLP as to the legality of the
    securities being registered
8
.1**
—
Opinion of Latham & Watkins LLP relating to tax matters
10
.1**
—
Form of Credit Agreement
10
.2**
—
Investors' Rights Agreement, dated August 24, 2007, by
    and among Oxford Resource Partners, LP, Oxford Resources GP,
    LLC, AIM Oxford Holdings, LLC, C&T Coal, Inc., Charles C.
    Ungurean and Thomas T. Ungurean
10
.3**
—
Employment Agreement between Oxford Resources GP, LLC and
    Michael B. Gardner
10
.4**
—
Employment Agreement between Oxford Resources GP, LLC and
    Jeffrey M. Gutman
10
.5**
—
Employment Agreement between Oxford Resources GP, LLC and
    Gregory J. Honish
10
.6**
—
Employment Agreement between Oxford Resources GP, LLC and
    Charles C. Ungurean
10
.7**
—
Employment Agreement between Oxford Resources GP, LLC and Thomas
    T. Ungurean
10
.8**
—
Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Michael B. Gardner
10
.9**
—
Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Jeffrey M. Gutman
10
.10**
—
Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Gregory J. Honish
10
.11**
—
Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Denise M. Maksimoski
10
.12**
—
Oxford Resource Partners, LP Long-Term Incentive Plan, as amended
10
.13**
—
Form of Long-Term Incentive Plan Grant Agreement
10
.14**
—
Form of Non-Employee Director Compensation Plan
II-2
Table of Contents
Exhibit
Number
Description
10
.15**
—
Form of Non-Employee Director Compensation Plan Grant Agreement
10
.16**
—
Acquisition Agreement, dated August 14, 2009, by and among
    Oxford Mining Company, LLC, Phoenix Coal Inc., Phoenix Coal
    Corporation and Phoenix Newco, LLC
21
.1*
—
List of Subsidiaries of Oxford Resource Partners, LP
23
.1*
—
Consent of Grant Thornton LLP
23
.2*
—
Consent of Ernst & Young LLP
23
.3*
—
Consent of John T. Boyd Company
23
.4**
—
Consent of Latham & Watkins LLP (contained in Exhibit 5.1)
23
.5**
—
Consent of Latham & Watkins LLP (contained in Exhibit 8.1)
24
.1*
—
Powers of Attorney (included on the signature page)
*
Filed herewith.
**
To be filed by amendment.
(b) Financial Statements Schedules.
Item 17.
Undertakings.
The undersigned registrant hereby undertakes to provide to the
    underwriters at the closing specified in the underwriting
    agreement certificates in such denominations and registered in
    such names as required by the underwriters to permit prompt
    delivery to each purchaser.
Insofar as indemnification for liabilities arising under the
    Securities Act of 1933 may be permitted to directors,
    officers and persons controlling the registrant pursuant to the
    foregoing provisions, the registrant has been informed that in
    the opinion of the Securities and Exchange Commission such
    indemnification is against public policy as expressed in the Act
    and is, therefore, unenforceable. In the event that a claim for
    indemnification against such liabilities (other than the payment
    by the registrant of expenses incurred or paid by a director,
    officer or controlling person of the registrant in the
    successful defense of any action, suit or proceeding) is
    asserted by such director, officer or controlling person in
    connection with the securities being registered, the registrant
    will, unless in the opinion of its counsel the matter has been
    settled by controlling precedent, submit to a court of
    appropriate jurisdiction the question of whether or not such
    indemnification by it is against public policy as expressed in
    the Securities Act of 1933 and will be governed by the final
    adjudication of such issue.
The undersigned registrant hereby undertakes that:
(1) For purposes of determining any liability under the
    Securities Act of 1933, the information omitted from the form of
    prospectus filed as part of this registration statement in
    reliance upon Rule 430A and contained in a form of
    prospectus filed by the registrant pursuant to
    Rule 424(b)(1) or (4) or 497(h) under the Securities
    Act of 1933 shall be deemed to be part of this registration
    statement as of the time it was declared effective.
(2) For the purpose of determining any liability under the
    Securities Act of 1933, each post-effective amendment that
    contains a form of prospectus shall be deemed to be a new
    registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial bona fide offering thereof.
II-3
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
    registrant has duly caused this Registration Statement to be
    signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Houston, State of Texas, on
    March 24, 2010.
OXFORD RESOURCE PARTNERS, LP,
By:
Oxford Resources GP, LLC
its General Partner
By:
/s/  Jeffrey
    M. Gutman
Jeffrey M. Gutman
Senior Vice President, Chief Financial Officer and Treasurer
Each person whose signature appears below appoints Michael B.
    Gardner and Jeffrey M. Gutman, and each of them, either of whom
    may act without the joinder of the other, as his true and lawful
    attorneys-in-fact and agents, with full power of substitution
    and resubstitution, for him and in his name, place and stead, in
    any and all capacities, to sign any and all amendments
    (including post-effective amendments) to this Registration
    Statement and any Registration Statement (including any
    amendment thereto) for this offering that is to be effective
    upon filing pursuant to Rule 462(b) under the Securities
    Act of 1933 and to file the same, with all exhibits thereto, and
    all other documents in connection therewith, with the Securities
    and Exchange Commission, granting unto said attorneys-in-fact
    and agents full power and authority to do and perform each and
    every act and thing requisite and necessary to be done, as fully
    to all intents and purposes as he might or would do in person,
    hereby ratifying and confirming all that said attorneys-in-fact
    and agents or either of them or their or his substitute and
    substitutes, may lawfully do or cause to be done by virtue
    hereof.
Pursuant to the requirements of the Securities Act of 1933, this
    Registration Statement has been signed below by the following
    persons in their indicated capacities, which are with the
    general partner of the registrant, on March 24, 2010.
Signature
Title
/s/  George
    E. McCown
George
    E. McCown
Chairman of the Board
/s/  Charles
    C. Ungurean
Charles
    C. Ungurean
Director, President and Chief Executive Officer
(principal executive officer)
/s/  Jeffrey
    M. Gutman
Jeffrey
    M. Gutman
Senior Vice President and Chief Financial Officer
(principal financial officer)
/s/  Denise
    M. Maksimoski
Denise
    M. Maksimoski
Senior Director of Accounting
(principal accounting officer)
/s/  Brian
    D. Barlow
Brian
    D. Barlow
Director
/s/  Matthew
    P. Carbone
Matthew
    P. Carbone
Director
/s/  Gerald
    A. Tywoniuk
Gerald
    A. Tywoniuk
Director
II-4
Table of Contents
EXHIBIT INDEX
Exhibit
Number
Description
1
.1**
—
Form of Underwriting Agreement
3
.1*
—
Certificate of Limited Partnership of Oxford Resource Partners,
    LP
3
.2**
—
Form of Third Amended and Restated Agreement of Limited
    Partnership of Oxford Resource Partners, LP  (included as
Appendix A
to the Prospectus)
5
.1**
—
Opinion of Latham & Watkins LLP as to the legality of the
    securities being registered
8
.1**
—
Opinion of Latham & Watkins LLP relating to tax matters
10
.1**
—
Form of Credit Agreement
10
.2**
—
Investors' Rights Agreement, dated August 24, 2007, by
    and among Oxford Resource Partners, LP, Oxford Resources GP,
    LLC, AIM Oxford Holdings, LLC, C&T Coal, Inc., Charles C.
    Ungurean and Thomas T. Ungurean
10
.3**
—
Employment Agreement between Oxford Resources GP, LLC and
    Michael B. Gardner
10
.4**
—
Employment Agreement between Oxford Resources GP, LLC and
    Jeffrey M. Gutman
10
.5**
—
Employment Agreement between Oxford Resources GP, LLC and
    Gregory J. Honish
10
.6**
—
Employment Agreement between Oxford Resources GP, LLC and
    Charles C. Ungurean
10
.7**
—
Employment Agreement between Oxford Resources GP, LLC and Thomas
    T. Ungurean
10
.8**
—
Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Michael B. Gardner
10
.9**
—
Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Jeffrey M. Gutman
10
.10**
—
Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Gregory J. Honish
10
.11**
—
Employee Unitholder Agreement between Oxford Resources GP, LLC
    and Denise M. Maksimoski
10
.12**
—
Oxford Resource Partners, LP Long-Term Incentive Plan, as amended
10
.13**
—
Form of Long-Term Incentive Plan Grant Agreement
10
.14**
—
Form of Non-Employee Director Compensation Plan
10
.15**
—
Form of Non-Employee Director Compensation Plan Grant Agreement
10
.16**
—
Acquisition Agreement, dated August 14, 2009, by and among
    Oxford Mining Company, LLC, Phoenix Coal Inc., Phoenix Coal
    Corporation and Phoenix Newco, LLC
21
.1*
—
List of Subsidiaries of Oxford Resource Partners, LP
23
.1*
—
Consent of Grant Thornton LLP
23
.2*
—
Consent of Ernst & Young LLP
23
.3*
—
Consent of John T. Boyd Company
23
.4**
—
Consent of Latham & Watkins LLP (contained in Exhibit 5.1)
23
.5**
—
Consent of Latham & Watkins LLP (contained in Exhibit 8.1)
24
.1*
—
Powers of Attorney (included on the signature page)
*
Filed herewith.
**
To be filed by amendment.
II-5