----

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C.**

**FORM      10-K/A**

**Amendment      No. 1**

**ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d)**

**OF      THE SECURITIES EXCHANGE ACT OF 1934**

| For                the fiscal year ended | Commission                File Number |
|------------------------------------------|---------------------------------------|
| **December                31, 2006**     | **000-51129**                         |
|                                     |                                  |

**JAMES      RIVER COAL COMPANY**

| **Virginia**                                            |   | **54-1602012**                     |
|---------------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction             |   | (I.R.S.                Employer    |
| of                incorporation or organization)        |   | Identification                No.) |
|                                     |   |                               |
| **901                E. Byrd Street, Suite 1600**       |   |                               |
| **Richmond,                Virginia**                   |   | **23219**                          |
| (Address                of principal executive offices) |   | (Zip                Code)          |

**:       (804) 780-3000**

| Securities                registered pursuant to Section 12(b) of the Act: | Common                Stock, par value $0.01 per shareSeries                A Participating Cumulative Preferred Stock Purchase                Rights |
|----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| Name                of each exchange on which registered:                  | The                Nasdaq Global Market                                                                                                               |
| Securities                registered pursuant to Section 12(g) of the Act: | None                                                                                                                                                  |

| Large                accelerated filer o | Accelerated                filer ý | Non-accelerated                filer o |
|------------------------------------------|-----------------------------------------|----------------------------------------|

----

**EXPLANATORY      NOTE**

----

**PART      III**

**ITEM      10.    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE      GOVERNANCE**

**Executive      Officers and Directors**

| **Name**                                 | **Age** | **Position**                                                      |
|------------------------------------------|---------|-------------------------------------------------------------------|
| Peter                T. Socha            | 48      | Chairman,                President and Chief Executive Officer    |
| Coy                K. Lane, Jr.          | 46      | Senior                Vice President and Chief Operating Officer  |
| Michael                E. Weber          | 53      | Senior                Vice President and Chief Commercial Officer |
| Samuel                M. Hopkins II      | 50      | Vice                President and Chief Accounting Officer        |
| W.                Douglas Blackburn, Jr. | 56      | Director                                                          |
| Alan                F. Crown             | 59      | Director                                                          |
| Ronald                J. FlorJancic      | 56      | Director                                                          |
| Leonard                J. Kujawa         | 74      | Director                                                          |
| Joseph                H. Vipperman       | 66      | Director                                                          |

*Peter      T. Socha.*

*Coy      K. Lane, Jr.*

*Michael      E. Weber.*

*Samuel      M. Hopkins II*

----

*W.      Douglas Blackburn, Jr.*

*Alan      F. Crown*

*Ronald        J. FlorJancic.*

*Leonard      J. Kujawa*

*Joseph      H. Vipperman*

----

**Audit      Committee**

**Section      16(a) Beneficial Ownership Reporting Compliance**

**Code      of Ethics**

*http://ir.jamesrivercoal.com/governance/ethics.cfm*

**ITEM      11.   EXECUTIVE COMPENSATION**

**Compensation      Committee Report**

| Alan                F. Crown |   | Joseph                H. Vipperman, Chairman |   | Ronald                J. FlorJancic |   |
|------------------------------|--------|----------------------------------------------|--------|-------------------------------------|--------|

*The      foregoing report of the Compensation Committee shall not be deemed incorporated      by reference by any general statement incorporating by reference the annual      report filed on Form 10-K/A into any filing under the Securities Act of 1933      or      the Securities Exchange Act of 1934, except to the extent that the Company      specifically incorporates this information by reference, and shall not otherwise      be deemed filed under such acts. *

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**COMPENSATION      DISCUSSION AND ANALYSIS**

**Overview**

**Compensation      Program Objectives, Administration and Overall Philosophy**

----

**Elements      of Compensation**

*Base      Salary*

*Bonuses*

*Equity      Incentives*

----

*Retirement      Benefits*

*Other      Benefits*

----

**Summary      Compensation Table**

|                                                                                                                             |             |                |          |                                                    |                  |                                                                    |                                                                                                                                                                                                       |                                                        |                |
|----------------------------------------------------------------------------------------------------------------------------------|------------------|---------------------|---------------|---------------------------------------------------------|-----------------------|-------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|---------------------|
| Name                and Principal                Position                                                                        | Year             | Base Salary($) | Bonus($)      | Stock                Awards($)                (1)  | Option Awards($) | Non-Equity                Incentive                Plan Compensation($) | Change                in Pension                Value                and Nonqualified                Deferred                Compensation                Earnings($)                (2)                (3) | All                Other Compensation($)                (4) | Total($)            |
|  Peter                T. Socha  Chairman                of the Board, President and Chief Executive Officer  |  2006  |  375,000  |  -  |  140,938                                      |  -          |  -                                                            |  9,391                                                                                                                                                                                           |  12,510                                           |  537,299  |
|  Coy                K. Lane, Jr.   Senior                Vice President and Chief Operating Officer          |  2006  |  250,810  |  -  |  632,278                                      |  -          |  -                                                            |  19,496                                                                                                                                                                                          |  8,310                                            |  910,084  |
|  Michael                E. Weber (5)  Senior                Vice President and Chief Commercial Officer      |  2006  |  56,395   |  -  |  23,774                                       |  -          |  -                                                            |  -                                                                                                                                                                                               |  1,396                                            |  81,323   |
|  Samuel                M. Hopkins, II  Vice                President and Chief Accounting Officer            |  2006  |  140,000  |  -  |  46,797                                       |  -          |  -                                                            |  5,901                                                                                                                                                                                           |  4,674                                            |  197,372  |

----

|   | (1) | The                value of stock awards is the compensation expense amount recognized                for                financial statement reporting purposes for 2006 in accordance with                FAS                123R. The grant date fair value of stock awards for financial statement                reporting purposes in accordance with FAS 123R is included in the“Grants                of Plan-Based Awards” table below. A discussion of the relevant fair value                assumptions is set forth in Note 8 to the Company’s consolidated financial                statements on pages F-24 through F-28 of the Annual Report on Form                10-K                for the year ended December 31,                2006. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The                change in pension value for 2006 is the increase in actuarial value                of the                Company’s defined benefit pension plan attributable to the Named Executive                Officer that was accrued during the year. Employees are eligible                to                participate in the plan on the first of the month following one year                of                service. Mr. Weber joined the Company in September 2006 and therefore                was                not eligible to participate in the plan. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The                Company does not provide any non-qualified deferred compensation                plans to                its employees. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | All                Other Compensation consists of employer matching contributions under                the                Company’s defined contribution profit sharing plan and the taxable value                of life insurance benefits provided by the Company. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Mr.                Weber joined the Company on September 11,                2006. |
|--------|-----|-----------------------------------------------------------------------------------|

**Grants      of Plan-Based Awards **

|  Name                                    |  Grant                  Date | All                  OtherStock                  Awards:Number                  of Shares                  of Stock                  or Units(#)                  (1) | Grant                  Date FairValue                  of Stockand                  Option Awards(2) |
|-----------------------------------------------|-----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
|  Michael                  E. Weber  | 9/11/2006                         | 25,000                                                                                                                                                                | $368,500                                                                                             |

|   | (1) | Mr.                Weber received 25,000 shares of restricted common stock, valued at                $14.74                per share, when he joined the Company in 2006. The shares are time-vested                and vest in five equal annual installments, beginning on November                1,                2007. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The                value of stock awards is the grant date fair value determined under                FAS                123R for financial statement reporting purposes. A discussion of                the                relevant fair value assumptions is set forth in Note 8 to the Company’s                consolidated financial statements on pages F-24 through F-28 of the                Annual                Report on Form 10-K for the year ended December 31,                2006. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Outstanding      Equity Awards at 2006 Fiscal Year-End**

|                                                                                                                 |                                                                                                                             |                                                                                                                                                                                                        |                                         |                                       |                                                                                                                                       |                                                                                                                                                                                    |                                                                                                                                                                                                  |                                                                                                                                                                                                                            |          |
|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
| Name                                                                                                                 |  **OPTION                AWARDS**                                                                                      |  **STOCK                AWARDS**                                                                                                                                                                  |
| Number                of Securities Underlying                Unexercised Options(#                exercisable) | Number                of Securities Underlying                Unexercised Options(#                unexercisable) | Equity                Incentive Plan                Awards: Number                of Securities                Underlying                Unexercised                Unearned                Options(#) | Option                Exercise Price($) | Option                Expiration Date | Number                of Shares                or Units                of Stock                that Have                Not Vested(#) | Market                Value of                Shares or                Units of                Stock that                Have Not                Vested($)                (1) | Equity                Incentive Plan Awards: Number of Unearned Shares,                Units                or Other                Rights That                Have Not                Vested(#) | Equity                Incentive Plan Awards: Market or Payout                Value of                Unearned Shares, Units                or Other                Rights That                Have Not                Vested($) |
|  Peter                T. Socha                                                                             |  60,000                (2)                                                                                             |  90,000                (2)                                                                                                                                                                        |  -                                 |  $10.80                          |  5/7/14                                                                                                                          |  123,750(3)                                                                                                                                                              |  $1,148,400                                                                                                                                                                                 |  -                                                                                                                                                                                                                    |  -  |
|  Coy                K. Lane, Jr.                                                                           |  -                                                                                                                     |  -                                                                                                                                                                                                |  -                                 |  -                               |  -                                                                                                                               |  80,000                (4)                                                                                                                                                    |  742,400                                                                                                                                                                                    |  -                                                                                                                                                                                                                    |  -  |
|  Michael                E. Weber                                                                           |  -                                                                                                                     |  -                                                                                                                                                                                                |  -                                 |  -                               |  -                                                                                                                               |  25,000                (5)                                                                                                                                                    |  232,000                                                                                                                                                                                    |  -                                                                                                                                                                                                                    |  -  |
|  Samuel                M. Hopkins, II                                                                      |  -                                                                                                                     |  -                                                                                                                                                                                                |  -                                 |  -                               |  -                                                                                                                               |  41,250                (6)                                                                                                                                                    |  382,800                                                                                                                                                                                    |  -                                                                                                                                                                                                                    |  -  |

|   | (1) | The                market value was calculated based on the closing market price of                $9.28 per                share of the Company’s common stock on December 29, 2006, the last trading                day of 2006. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Pursuant                to his employment agreement with the Company, Mr. Socha was granted                options on May 25, 2004 to acquire 150,000 shares of common stock                for                $10.80 per share. The options vest in five equal annual installments,                beginning on the first anniversary of the date of grant. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | On                May 25, 2004, Mr. Socha also was granted 300,000 restricted shares                of                common stock, 206,250 shares of which will vest in five equal annual                installments, beginning on the first anniversary of the date of the                grant,                and the remaining 93,750 shares with vesting based upon the achievement                of                designated corporate performance criteria. The performance criteria                included achieving EBITDA results for 2004 and 2005 of approximately                $126.3 million for the two year period (80% of vesting) and the successful                development of the new mine at McCoy Elkhorn (20% of vesting). The                Company                did not achieve the established performance criteria for 2004 and                2005                EBITDA, and therefore 75,000 shares were forfeited. The remaining                18,750                shares were distributed in 2006 based upon the successful development                of                the new mine at McCoy Elkhorn. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (4) | During                2005, Mr. Lane was granted 100,000 restricted shares of the Company’s                common stock which vest as follows: 25% of the shares vest in five                equal                annual installments, beginning on May 25, 2006, and the remaining                75% of                the shares vest in five equal annual installments beginning November                1,                2006. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | In                2006, Mr. Weber was granted 25,000 restricted shares of the Company’s                common stock which vest in five equal annual installments, beginning                on                November 1, 2007. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | In                2004, Mr. Hopkins was granted 68,750 restricted shares of the Company’s                common stock which vest in five equal annual installments, beginning                on                May 25, 2005. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Option      Exercises and Stock Vested in 2006**

|                                                                   |                                                        |                                                                  |                                                                          |                   |
|------------------------------------------------------------------------|-------------------------------------------------------------|-----------------------------------------------------------------------|-------------------------------------------------------------------------------|------------------------|
| Name                                                                   |  **OPTION                AWARDS**                 |  **STOCK                AWARDS**                            |
| Number                of Shares Acquired                on Exercise(#) | Value                Realized on                Exercise($) | Number                of Shares Acquired                on Vesting(#) | Value                Realized on                Vesting($)                (1) |
|  Peter                T. Socha                               |  -                                                |  -                                                          |  60,000                                                             |  $1,962,000  |
|  Coy                K. Lane, Jr.                             |  -                                                |  -                                                          |  20,000                                                             |  328,800     |
|  Michael                E. Weber                             |  -                                                |  -                                                          |  -                                                                  |  -           |
|  Samuel                M. Hopkins, II                        |  -                                                |  -                                                          |  13,750                                                             |  449,625     |

|   | (1) | The                value of the awards was calculated on the closing price per share                of the                Company’s common stock on the vesting date. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Pension      Benefits in 2006**

----

|                                             |                                                                                                                           |                                                                                                      |                                                                                                     |                                                                             |
|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
| Name                                             | Plan                Name                                                                                                       | Number                of Years                Credited                Service(#)                (1)  | Present                Value of Accumulated                Benefit($)                (2)  | Payments                During                Last Fiscal                Year($) |
|  Peter                T. Socha              |  James                River Coal Company                Employees’                Pension                Plan  |  4.5                                                                                  |  $38,643                                                                                       |  -                                                                     |
|  Coy                K. Lane, Jr.       |  James                River Coal Company Employees’                Pension                Plan            |  2.5                                                                                  |  19,496                                                                                   |  -                                                                     |
|  Michael                E. Weber (3)   |  James                River Coal Company                Employees’                Pension                Plan  |  -                                                                                              |  -                                                                                        |  -                                                                |
|  Samuel                M. Hopkins, II  |  James                River Coal Company                Employees’                Pension                Plan  |  3.5                                                                                  |  27,011                                                                                   |  -                                                                |

|   | (1) | Participants                are credited with a year of credited service for any year in which                they                have completed 1,000 or more hours of                service. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Amounts                represent the actuarially determined present value of projected plan                benefits due the individual, assuming an interest rate of 5.55%,                as used                in the Company’s financial statement disclosures for the year ended                December 31, 2006, the 1983 Group Annuity Tables for Males and Females                and                compensation limits of $220,000 for 2006, $210,000 for 2005 and $205,000                for 2004. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Mr.                Weber joined the Company in September 2006 and therefore was not                eligible                to participate in the plan. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Employment      Contracts, Termination of Employment, Severance and Change-in-Control      Arrangements**

*Employment      Contracts*

*Severance      and Change-in-Control Arrangements *

| Peter                T. Socha        | $879,808 |
|--------------------------------------|----------|
| Samuel                M. Hopkins, II | 140,000  |
| Coy                K. Lane, Jr.      | 250,000  |

----

**Director      Compensation in 2006**

*Annual      Board Fees*

*Annual      Equity Compensation*

----

**Director      Compensation**

| **(a)**                                             | **(b)**                                                           | **(c)**                                                    | **(d)**                                                               | **(e)**                                                                 | **(f)**                                                                                                                                                              | **(g)**                                  | **(h)**             |
|-----------------------------------------------------|-------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------------------------------------|-------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|---------------------|
| Name                                                | Fees Earned                or Paid                in Cash($) | Stock Awards($)                (1)                (2) | Option                Awards($)                (1)                (3) | Non-Equity                Incentive                Plan Compensation($) | Change                in Pension                Value                and Nonqualified                Deferred                Compensation                Earnings($) | All                Other Compensation($) | Total($)            |
|  W.                Douglas Blackburn (4)  |  12,364                                                 |  2,024                                           |  9,697                                                      |  -                                                            |  -                                                                                                                                                         |  -                             |  24,085   |
|  Alan                F. Crown             |  37,500                                                 |  19,050                                          |  58,030                                                     |  -                                                            |  -                                                                                                                                                         |  -                             |  114,580  |
|  Ronald                J. FlorJancic (4)  |  12,364                                                 |  2,024                                           |  9,697                                                      |  -                                                            |  -                                                                                                                                                         |  -                             |  24,085   |
|  Matthew                Goldfarb (4)      |  5,041                                                  |  -                                               |  -                                                          |  -                                                            |  -                                                                                                                                                         |  -                             |  5,041    |
|  Leonard                J. Kujawa         |  47,500                                                 |  19,050                                          |  58,030                                                     |  -                                                            |  -                                                                                                                                                         |  -                             |  124,580  |
|  Joseph                H. Vipperman       |  37,500                                                 |  18,311                                          |  58,030                                                     |  -                                                            |  -                                                                                                                                                         |  -                             |  113,841  |
|  James                F. Wilson (4)       |  17,500                                                 |  1,784                                           |  7,409                                                      |  -                                                            |  -                                                                                                                                                         |  -                             |  26,693   |

|   | (1) | The                value of stock awards and option awards was the 2006 compensation                expense                amount recognized for financial reporting purposes in accordance                with FAS                123R. A discussion of the relevant fair value assumptions is set                forth in                Note 8 to the Company’s consolidated financial statements on pages F-24                through F-28 of the Annual Report on Form 10-K for the year ended                December                31, 2006. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | As                of December 31, 2006, the aggregate number of restricted stock awards                outstanding for each non-employee director was as follows: Mr. Blackburn,                1,125 shares; Mr. Crown, 2,501 shares; Mr. FlorJancic, 1,125 shares;                Mr.                Goldfarb, 0 shares; Mr. Kujawa, 2,501 shares; Mr. Vipperman, 2,167                shares;                and Mr. Wilson, 0 shares. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | As                of December 31, 2006, the aggregate number of stock option awards                outstanding for each non-employee director was as follows: Mr. Blackburn,                10,000 options; Mr. Crown, 15,000 options; Mr. FlorJancic, 10,000                options;                Mr. Goldfarb, 0 options; Mr. Kujawa, 15,000 options; Mr. Vipperman,                11,666                options; and Mr. Wilson, 0 options. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Mr.                Blackburn, Mr. FlorJancic and Mr. Goldfarb were appointed to the                Board                effective August 22, 2006. Mr. Goldfarb resigned from the Board effective                October 16, 2006. Mr. Wilson resigned from the Board effective July                7,                2006. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Compensation      Committee Interlocks and Insider Participation**

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**ITEM      12.     SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND      MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

**Securities      Authorized for Issuance under Equity Compensation Plans**

|    **Plan                Category**                                  |   | **Number                of****Securities**** ****to****be****Issued                Upon****Exercise****of                Outstanding****Options,****Warrants                and Rights** |   | **Weighted-Average****Exercise                Price of****Outstanding****Options,****Warrants                and****Rights** |   | **Number                of Securities****Remaining                Available****for****Future                Issuance****Under****Equity                Compensation****Plans** |
|-------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                |   |                                                                                                                                                                                          |   |                                                                                                                         |   |                                                                                                                                                                           |
| Equity                Compensation PlansApproved                by Shareholders     |   | 109,337                                                                                                                                                                                       |   | $15.33                                                                                                                       |   | 507,912                                                                                                                                                                        |
|                                                                                |   |                                                                                                                                                                                          |   |                                                                                                                         |   |                                                                                                                                                                           |
| Equity                Compensation Plans NotApproved                by Shareholders |   | 150,000                                                                                                                                                                                       |   | $10.80                                                                                                                       |   | N/A                                                                                                                                                                            |

**Security      Ownership of Certain Beneficial Owners and Management**

----

|                                                                   |                          |                     |
|------------------------------------------------------------------------|-------------------------------|--------------------------|
| **Name**                                                               | **Number                (1)** | **%                (2)** |
| SouthernSun                Asset Management, Inc (3)                   | 1,637,596                     | 9.82%                    |
| Steelhead                Partners LLC(4)                               | 1,399,964                     | 8.40%                    |
| LaGrange                Capital Administration, L.L.C. (5)             | 871,406                       | 5.23%                    |
| Peter                T. Socha (6)                                      | 295,530                       | 1.76%                    |
| Coy                K. Lane, Jr. (7)                                    | 93,509                        | *                        |
| Samuel                M. Hopkins II (8)                                | 64,222                        | *                        |
| Michael                E. Weber (9)                                    | 25,000                        | *                        |
| Alan                F. Crown (10)                                      | 21,833                        | *                        |
| Leonard                J. Kujawa (11)                                  | 21,833                        | *                        |
| Joseph                H. Vipperman (12)                                | 13,834                        | *                        |
| W.                Douglas Blackburn, Jr. (13)                          | 6,609                         | *                        |
| Ronald                J. FlorJancic (14)                               | 4,459                         | *                        |
| Executive                Officers and Directors as a Group (9 persons) | 546,829                       | 3.25%                    |

----

| *    | Less                than 1%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | This                column lists all shares of common stock beneficially owned, including                all                restricted shares of common stock, and all shares of common stock                that can                be acquired through option exercises within 60 days of the date of                this                report.                                                                                                                                                                                                                                                                                                                                                        |
| (2)  | In                calculating the percentage owned, we assumed that any options for                the                purchase of common stock that are exercisable by that shareholder                within                60 days of the date of this report are exercised by that shareholder                (and                the underlying shares of common stock issued). The total number of                shares                outstanding used in calculating the percentage owned assumes a base                of                16,671,127 shares of common stock outstanding as of April 15, 2007                and no                exercise of options held by other shareholders. |
| (3)  | As                of December 31, 2006, based on information in the Schedule 13F Holding                Report filed on February 8, 2007. The business address of the SouthernSun                Asset Management, Inc. is 6000 Poplar Avenue, Suite 220, Memphis,                TN                38119.                                                                                                                                                                                                                                                                                                                                                                                                |
| (4)  | As                of December 31, 2006, based on information in the Schedule 13F Holding                Report filed on February 1 2007. The business address of the Steelhead                Partners LLC is 1301 First Avenue, Suite 201, Seattle, WA                98101.                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (5)  | As                of January 10, 2006, based on information in the Schedule 13G filed                on                January 22, 2007. The business address of LaGrange Capital Administration,                L.L.C. is 1270 Avenue of Americas, Suite 2200, New York,                NY10020.                                                                                                                                                                                                                                                                                                                                                                                                         |
| (6)  | Includes                123,750 shares of unvested restricted stock and 90,000 options that                are                exercisable within 60 days of the date of this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (7)  | Includes                80,000 shares of unvested restricted stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (8)  | Includes                41,250 shares of unvested restricted stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (9)  | Includes                25,000 shares of unvested restricted stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (10) | Includes                2,501 shares of unvested restricted stock and 18,333** **options                that are exercisable within 60 days of the date of this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (11) | Includes                2,501 shares of unvested restricted stock and 18,333** **options                that are exercisable within 60 days of the date of this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (12) | Includes                2,167 shares of unvested restricted stock and 8,334 options that                are                exercisable within 60 days of the date of this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (13) | Includes                1,125 shares of unvested restricted stock and 3,334 options that                are                exercisable within 60 days of the date of this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (14) | Includes                1,125 shares of unvested restricted stock and 3,334 options that                are                exercisable within 60 days of the date of this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

**ITEM      13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR      INDEPENDENCE**

**Transactions      with Related Persons**

**Review,      Approval or Ratification of Transactions with**
**Related Persons**

**Director      Independence**

**ITEM      14.   PRINCIPAL ACCOUNTING FEES AND SERVICES **

**Fees**

| ($                in thousands)       |   | 2006   |   | 2005   |   |
|---------------------------------------|--------|--------|--------|--------|--------|
|                                  |   |   |   |   |   |
| Audit                Fees (1)         |   | $      | 536    |   | $      | 701 |   |
| Audit-Related                Fees (2) |   |   | -      |   |   | 24 |   |
| Tax                Fees               |   |   | 14     |   |   | 141 |   |
| All                Other Fees         |   |   | -      |   |   | - |   |
| Total                                 |   | $      | 550    |   | $      | 866 |   |
|                                  |   |   |        |   |   |  |   |

**_________________**

| (1) | Fees                for audit services billed in 2006 consisted of the audit of the Company’s                consolidated financial statements in accordance with auditing standards                generally accepted in the United States of America ($425), quarterly                reviews of unaudited consolidated financial statements ($80), and                other                billings ($26). Fees for audit services billed in 2005 consisted                of the                audit of the Company’s consolidated financial statements in accordance                with auditing standards generally accepted in the United States of                America                ($393), quarterly reviews of unaudited consolidated financial statements                ($75), and services in connection with the Company’s registration                statements ($233). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Other                fees billed in 2005 consisted of services related to our benefit                plans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

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**Approval      of Audit and Non-Audit Services**

**PART      IV**

**ITEM      15.**
**   **
** EXHIBITS,      FINANCIAL STATEMENT SCHEDULES**

**(a)**
**   **
** **

**1.**
**   **
** Financial      Statements**

**2.**
**   **
** Financial      Statement Schedules**

**3.**
**   **
** Exhibits**

| **Exhibit****Number** |   | **Description**                                                                                                                                                                                                                                                                                                                                              |
|-----------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                                                                                                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                         |
| 31.1                  |   | Certification                of Peter T. Socha, President and Chief Executive Officer of James                River                Coal Company, pursuant to rule 13a-14(a) or 15d-14(a) of the Exchange                Act,                as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                2002.                             |
|                  |   |                                                                                                                                                                                                                                                                                                                                                         |
| 31.2                  |   | Certification                of Samuel M. Hopkins, II, Vice President and Chief Accounting Officer                of                James River Coal Company, pursuant to rule 13a-14(a) or 15d-14(a)                of the                Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley                Act                of 2002. |
|                  |   |                                                                                                                                                                                                                                                                                                                                                         |
| 32.1                  |   | Certification                of Peter T. Socha, President and Chief Executive Officer of James                River                Coal Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant                to                Section 906 of the Sarbanes-Oxley Act of 2002.                                                                     |
|                  |   |                                                                                                                                                                                                                                                                                                                                                         |
| 32.2                  |   | Certification                of Samuel M. Hopkins, II, Vice President and Chief Accounting Officer                of                James River Coal Company, pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002.                                         |

----

**SIGNATURES**

|   | **JAMES                RIVER COAL COMPANY**                                                                                                                                                                                                                                                                                     |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                            |
|   | By:                /s/                Peter T.                Socha                                           |
|   |                       Peter T. Socha                                                                                                                                                                                                                                                              |
|   |                       Chairman of the Board,                                                                                                                                                                                                                                                      |
|   |                       President and Chief Executive Officer                                                                                                                                                                                                                                       |
|   |                       (principal executive officer)                                                                                                                                                                                                                                               |

| **Signature**                                        |   | **Title**                                                                                                                                               |
|------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|  /s/                  Peter T. Socha            |   |  Chairman                  of the Board, President and Chief Executive                  Officer (principal executive officer)                      |
| Peter                  T. Socha                      |   |
|  /s/                  Samuel M. Hopkins, II     |   |  Vice                  President and Chief Accounting Officer (principal                  financial officer and principal accounting officer) |
| Samuel                  M. Hopkins, II               |   |
|  /s/                  W. Douglas Blackburn, Jr. |   |  Director                                                                                                                                          |
| W.                  Douglas Blackburn, Jr.           |   |                                                                                                                                                    |
|  /s/                  Alan F. Crown             |   |  Director                                                                                                                                          |
| Alan                  F. Crown                       |   |                                                                                                                                                    |
|                                            |   |  Director                                                                                                                                          |
| Ronald                  J. FlorJancic                |   |                                                                                                                                                    |
|  /s/                  Leonard J. Kujawa         |   |  Director                                                                                                                                          |
| Leonard                  J. Kujawa                   |   |                                                                                                                                                    |
|  /s/                  Joseph H. Vipperman       |   |  Director                                                                                                                                          |
| Joseph                  H. Vipperman                 |   |                                                                                                                                                    |
|                                                 |   |