UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION

                           Washington, D.C. 20549

                             __________________


                                  FORM 10-K

          [ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934

                 For the Fiscal Year Ended December 31, 2001

                         Commission File No. 0-1392

                       CENTRAL NATURAL RESOURCES, INC.

            (Exact name of registrant as specified in its charter)

            (Formerly Central Coal & Coke Corporation-name change
             at December 31, 2000)

<TABLE>
<S>                                                     <C>
    Delaware                                                     44-0196290
__________________                                       __________________
(State or other jurisdiction                               (I.R.S. Employer
of incorporation or organization)                       Identification No.)

127 West 10th Street, Suite 666, Kansas City, Missouri                64105
______________________________________________________                _____
(Address of Principal Executive Offices)                         (Zip Code)
</TABLE>

 Registrant's telephone number, including area code:   816/842-2430
                                                       ____________

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

<TABLE>
<CAPTION>
                                                   NAME OF EACH EXCHANGE ON
TITLE OF EACH CLASS                                        WHICH REGISTERED
___________________                                ________________________
<S>                                                <C>
          None                                             None
</TABLE>

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

                       Common stock ($1 par value)
                       ___________________________
                            (Title of Class)

<PAGE>

     Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes [ X ] No [   ]

     Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K.  [ X ]

     The aggregate market value of the voting stock held by
nonaffiliates of the registrant (194,220 shares), as of March 11, 2002
was $3,264,838.20

     The number of shares outstanding of the issuer's only class of
common stock as of March 11, 2002 is as follows:

             Common Stock ($1.00 Par Value) . . . . . . 503,924

                    DOCUMENTS INCORPORATED BY REFERENCE

     Portions of the Annual Report to security holders for fiscal
year ended December 31, 2001, captioned "Selected Consolidated
Financial Data," "Management's Discussion and Analysis of Financial
Condition & Results of Operations" and range of bid and asked
questions and dividends paid on common stock.  (Part II)

     Definitive Proxy Statement furnished to security holders and
the Securities and Exchange Commission on March 21, 2002, relative
to the Annual Meeting of Stockholders to be held on April 18, 2002.
(Part III)


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                                    -2-

<PAGE>


                                  PART I

ITEM 1.  BUSINESS


    (a)   General Development of Business. Central Natural
Resources, Inc. (hereinafter "the Company") is a Delaware corporation
and the general development of its current one business segment, the
Energy Business Segment, is described in the narrative description of
the business contained in Section 1(c) hereafter.  The Company
historically has been involved in that business segment.

    Since the beginning of the fiscal year, there have been no
bankruptcy, receivership or similar proceedings with respect to the
Company; there has been no material reclassification, merger or
consolidation of the Company; there has been no acquisition or
disposition of any material amount of assets otherwise than in the
ordinary course of business. There has been no material change in
the mode of conducting the business of the Company.

    (b) Financial Information about Industry Segments.  During the
year 2001, the Company had one reportable segment which is
identified as the Energy Business Segment.

    (c) Narrative Description of Business.  The one current business
activity of the Company consists of the management of its
interests in real properties and as discussed above is now identified
as the Energy Business Segment.  Such real property interests have
been held and managed by the Company for lease to others for exploration
and the extraction of coal and oil and gas and for surface use. From
time to time sales of portions of such properties have been made. In
1997 the Company sold approximately 88.17 acres of surface land
in Macon County, Missouri for a gain of $37,309.50; in 1998 sold
approximately 196 acres of surface land in that county for a gain
of $85,421.31; in 1999 sold approximately 26 acres of surface land for
a gain of $19,282.38; and in 2000 sold approximately 4.67 acres of
surface land for a gain of $3,390.36.  In 2001 the Company sold
2.25 acres of surface land in Sebastian County, Arkansas, for a gain
of $1,125; in 1998 the Company sold approximately 41 acres of
surface land in that county, for a gain of $19,923; and in 1997 had
sold 1.75 acres of surface land in that county for a gain of $800.
Also in 1999 the Company sold approximately 35 acres of surface
land in that Pittsburg County, Oklahoma, for a gain of $24,207.
In addition, in 1997 the Company sold a waiver of surface rights
on 7.21 acres of its Walker County, Texas property for $2,500. The
properties owned at the end of the fiscal year are described in
Item 2.



<PAGE>                               -3-


    During 1993 the Company commenced a voluntary program of
reforestation on reclaimed open pit coal mining property located in
Arkansas and Oklahoma. The program was not federally or state
mandated, but was undertaken to enhance the value of its real
property and in furtherance of its concept of social responsibility.
Some additional reforestation on its properties in Arkansas took place
in 1997 on which the Company spent approximately $1,100 during
that year. There was no additional reforestation expense in 1998,
1999, 2000 or 2001.  The financial impact upon the Company, both
in terms of short-term expenditures and future income should not
be material.

    Another activity of Company consists of the ownership and
management of its investment portfolio of marketable securities
and United States government and agency obligations.

    Other than as described above, the Company produces no
products nor renders any services; however, oil, gas, and coal are
extracted by lessees from properties owned by the Company as
more fully explained in Item 2.



                                     -4-
<PAGE>


    There have been no new products nor industry segments
requiring the investment of a material amount of assets of the
Company, and there have been no public announcements nor has
information otherwise become public involving any such new products
or industry segments.

    Raw materials are not essential to the Company's businesses.

    There are no patents, trademarks, licenses, franchises and
concessions held by the Company.

    No business of any industry activity of the Company is or may
be seasonal.

    The Company has no significant practices relating to working
capital since it carries no significant amount of inventory and does
not provide extended payment terms to customers.

    Bethlehem Steel Corporation was the lessee under a coal lease
from the Company for a term of 40 years commencing in June, 1969,
providing for minimum royalties of $50,000 annually for each of
the first three years and $90,000 annually for the next 36 years,
together with provisions for royalties of 22-1/2 cents per ton of
coal mined and shipped against which the minimum royalties are to
be applied.  On October 1, 1984, this lease was amended to increase
the royalty to the greater of $1.00 per ton or 3% of the F.O.B. mine
selling price for all coal paid for by actual royalty or minimum
royalty after that date, and Bethlehem assigned the lease to another.
A portion of the leased property was subsequently subleased to another
party, but Bethlehem continues to guarantee the total royalty payment.
A small amount of mining has been done on the lease.  The loss of the
revenues from this lease would result in a material diminution in the
income of the Company, but the Company has no reason to believe that
the lessee has either the legal right or intention to cease making the
required payments thereunder.

                                     -5-

<PAGE>

    Royal Oil Company of Corpus Christi, Texas ("Royal Oil") is the
lessee of a number of oil and gas leases covering properties of the
Company located in San Jacinto County, Texas.  During 2001 Royal Oil
paid to the Company royalties on production under those leases
aggregating approximately $342,389 which exceeds ten percent of the
Company's consolidated revenue.

    SEECO, Inc. of Fayetteville, Arkansas is the lessee of a number of
oil and gas leases covering properties of the Company located in
Sebastian County, Arkansas.  During 2001 SEECO paid the Company
royalties on production under those leases aggregating approximately
$210,658.

    Except as discussed above, there are no customers to which sales
are made in an amount which equals ten percent or more of the
Company's consolidated revenue.

    The Company's businesses do not have any backlog of unfilled orders.

    No material portions of the businesses of the Company may be subject
to renegotiation of profits or termination of contracts or subcontracts
at the election of the Government.

    There are no competitive conditions in the businesses in the
Company's Energy Business Segment which have a material impact on
its operations.

    The Company spent no money during any of the last three fiscal
years on material company-sponsored research and development activities
as determined in accordance with generally accepted accounting
principles.  In addition, the Company spent no money during such years
on material customer-sponsored research activities relating to the
development of new products, services or techniques or the improvement
of existing products, services or techniques.

                                     -6-
<PAGE>


    Compliance with Federal, State and local provisions regulating
the discharge of materials into the environment, or otherwise relating
to the protection of the environment will have no material effect upon
the capital expenditures, earnings and competitive position of the
Company.  There are no material estimated capital expenditures for
environmental control facilities for the remainder of the current fiscal
year and the succeeding fiscal year or for any further periods which the
Company deems material.

As to business intended to be done by the Company, it has, during the
last five years, investigated several new business opportunities, both in
the Energy Business Segment and in other reportable business segments.
After review of those new business opportunities, some were either
rejected as not suitable for the Company at the present time or taken
off the market and others continue to be investigated by the Company
for possible acquisition.  Management of the Company continues to
seek out and investigate such new business opportunities or expansion
of existing leasing activities which could result in a more productive
deployment of the Company's assets in an effort to generate more
rental, bonus, and royalty income, and is considering acquiring
additional mineral properties or perhaps working interests in selected
oil and gas operations.

The total number of persons employed by the Company itself, as of
the end of the fiscal year, was 3.

    (d) Financial Information about Geographic Areas.  The Company
does not engage in operations in foreign countries, nor are portions
of sales or revenues derived from customers in foreign countries.




                                     -7-

<PAGE>


ITEM 2.  PROPERTIES

    (a)  The principal physical properties of the Company
are whole or partial interests in approximately 64,000 acres
of real property located in Arkansas, Louisiana, Texas, Kansas,
Oklahoma and Missouri.  Registrant's mineral reservation under
the Sam Houston National Forest in Texas on an additional 76,000
acres expired on January 1, 1985, but was extended for a
five-year period on about 6,280 acres with producing wells, which
period expired January 1, 1990.  Another 640 of these acres were
lost on January 1, 1990, and an additional 1,623 of these acres
were lost on January 1, 1995, leaving the Company's rights
in 4,017 remaining acres, which were due to expire January 1, 2000,
unless extended.  These properties were evaluated by the appropriate
United States government agency to determine what portion of the
acreage was in fact extended by production as of that date and what
portion did expire and no material portion of that acreage failed to
be extended by production.  In later parts of this Item 2 references
are made to the ownership of "minerals."  The Company is the owner
of all or part of the subsurface minerals on large portions of the
properties involved, but the only minerals of primary interest to
the Company are coal, oil and gas.

     (1) REAL PROPERTY INTERESTS IN THE STATE OF ARKANSAS.

         The Company is the owner of approximately 1,658 acres
in fee simple, of minerals underlying approximately 16,447
additional acres, and of a number of town lots in three small
towns, all in Sebastian County, Arkansas, having sold approximately
7.25 acres in 1996, 1.75 acres in 1997, and 41 acres in 1998, and
2.25 acres in 2001.

         Mineral interests underlying approximately 13,600 acres
are under a coal lease to the assignee of Bethlehem Steel Corporation
under the coal lease described in Item l(c).  Another 586 acres were
leased in 1993 under two separate oil and gas leases (both to the
same lessee) for 5-year terms, one of which expired in 1998 without
any production, but the other of which commenced production during
that year.  In 1997 another 120 acres were leased for a 3-year term.
Production commenced on this lease during 1999.  In 1998 another 250
acres were leased under three separate oil and gas leases, each for
a 3 year term.  Production commenced on all three leases during 1999.
In 2000, another 119 acres were leased for a 5-year term.  As yet
there is no production under this lease.


                                     -8-

<PAGE>


         Of the 13,600 acres currently under a coal lease to the
assignee of Bethlehem Steel Corporation as described in the preceding
paragraph, 10,537.23 acres were leased to C.D. Exploration, Inc. in
1995 under an Oil & Gas Lease for a term of five years, for which the
lessee paid a bonus of approximately $105,000.  This lease was
subsequently extended by contract for a period of one year, and now
production has commenced and the lease is continued by production.
An additional 2,346.26 acres were leased to the same lessee in 2001
for a three year term, and as yet there is no production under this
lease.  An additional 414 acres were leased in 1994 under three
separate oil and gas leases (two to the same lessee), one for a
three year term and the other two for five year terms, one of which
expired in 1997 with no production, one of which expired in 1999
with no production, and one of which commenced production in 1998.
An additional 1,483.31 acres were leased in 1996 in one oil and gas
lease for a term of five years, and this lease expired in 2001 with
no production.  In addition, the Company has fractional royalty
interests in 13 small producing gas wells which are located on an
approximately 7,040 acre tract of which the Company owns 2,192 acres.

    (2)  REAL PROPERTY INTERESTS IN THE STATE OF TEXAS.

    The Company was the owner of practically all of the mineral
interests in approximately 90,551 acres located in the Texas counties
of San Jacinto, Walker and Montgomery, of which approximately 82,674
acres were under a reservation (in a deed of December, 1935) which
covered all oil, gas, sulphur and other minerals on, in, under or
that may be produced from the lands for a period commencing with
the date of the deed and ending on January 1, 1985, and provided
further that if on said latter date minerals were being produced
in paying quantities then the reservation would be extended for a
five-year period as to an area of one square mile of which the well
is the center and for subsequent extensions for additional five-year
periods so long as paying operations are being conducted on the
premises. The right to prospect for and mine and remove minerals
was further limited by various requirements of the United States.

                                     -9-

<PAGE>

As described in Item 2(a) above, this reservation expired on
January 1, 1985, and the wells then producing on such properties
permitted the Company to retain until January 1, 1990, about
6,280 acres in the Mercy Field, West Mercy Field and Moroil Field and
as of January 1, 1995, the Company continued to retain approximately
4,017 of such acres, while production continues.  The reservation was
extended for an additional five-year term which ended January 1, 2000.
As discussed in Item 2(a) above, the property was evaluated to determine
what portion thereof the Company is entitled to retain by production,
and what portion thereof has expired, and no material portion thereof
expired.

   In addition to the wells still under production from the earlier
leases, in 1997 one additional lease was made on 241.73 acres of
the Company's Walker County, Texas property, and a producing well was
drilled on this property during 1999.  In year 2000 10 acres were leased
for a 3-year term.  As yet there is no production under this lease.

    The Company's mineral interests in its remaining acreages of
approximately 7,788.55 acres in Texas are reservations of perpetual
mineral rights.  In the case of approximately 7,600 of those acres,
one-thirty-second of the minerals are vested in the owner of the
surface of said properties but with the right in the Company to
make all leases on the acreage and to keep all bonuses and rentals
received under such leases.  In January, 1995, the entire 7,788.55
acres of these mineral interests were leased under one oil and gas
lease for a term of three years with one option to renew for an
additional two years, which the lessee has exercised in January 1998,
upon payment of approximately $194,000 to the Company.

                                    -10-

<PAGE>

The lessee originally paid a bonus of approximately $311,000 in
connection with the initial term of this lease.  There was no
production under this lease, and therefore it expired in January,
2000, and this acreage is now open for lease.

    (3)  REAL PROPERTY INTERESTS IN THE STATE OF LOUISIANA.

    In January, 1967, the Company sold approximately 35,000
acres of Louisiana real property reserving mineral servitudes
thereon.  Under Louisiana law the ownership of mineral servitudes
not exercised through production or drilling to a depth at which
production reasonably can be expected to be found expires by
liberative prescription after a period of such nonuser of ten
years. No production or drilling occurred on approximately 14,000
 of the acres sold in 1967 within the ten-year period and, hence,
the Company's ownership of the mineral servitudes under such
approximately 14,000 acres was extinguished as of January 26, 1977.
During 1978, the Company's ownership of the mineral servitudes
under 1,243 additional acres was extinguished because production
had been exhausted for ten years.  Mineral servitudes under the
remaining acres sold in 1967 have been extended by drilling or
production for various periods expiring after January 26, 1977.
The Company's rights to approximately 8,530 additional acres
of these servitudes expired during 1994, and its rights to an
additional approximate 600 acres expired in 2001.


                                    -11-

<PAGE>

    In the Hurricane Creek Field, Beauregard Parish, Louisiana,
880 acres are held by production which commenced in 1947.  The
leases of the Company in the Hurricane Creek Field provide for
one-eighth gross royalties except as to 160 acres for which the
gross royalty is one-fourth.  In 1964, a Unitization Agreement
covering one producing sand was executed by various interested
parties in the Hurricane Creek Field so as to permit a secondary
recovery program, and a second Unitization Agreement was executed
in March, 1994.

    Approximately 400 additional acres in Beauregard Parish,
Louisiana, are held under production pursuant to a lease, the
original term of which expired many years ago but which continues
by production.

    The Company leased approximately 9,339 acres of its real
property in Vernon Parish, Louisiana, for a term of four years,
pursuant to the exercise of a geo-option made in early 1991. This
lease was extended for an additional year in 1995, and one well was
drilled but it turned out to be a "dry hole," and there was no
production.  This property is currently available for lease and if
there is no further attempted production by December, 2006, the
Company's rights in this property will expire.


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                                    -12-

<PAGE>


    (4)  REAL PROPERTY INTERESTS IN OKLAHOMA AND KANSAS.

         The Company is the owner of interests in real property
in three counties in eastern Oklahoma and three counties in southeast
Kansas, which ownership consists of approximately 1,350 acres in fee
simple (having sold approximately 35 acres of surface land located
in Pittsburg County, Oklahoma during 1999), and approximately 13,546
additional acres of underlying minerals.  A substantial part of such
13,546 acres of mineral ownership is described in the conveyances or
reservations giving rise to such ownership as "coal" or "coal and
asphaltic minerals."

        In the year 2000, 710 acres were leased for a 3-year term,
and an additional 90.24 acres were leased in 2001 for a three year
term.  As yet there is no production from either of these leases.
The Company in the past has also rented the surface of portions
of its lands in Kansas and Oklahoma, largely for agricultural
purposes, under leases of not to exceed one year.


    (5)  REAL PROPERTY INTERESTS IN THE STATE OF MISSOURI.

    In Randolph and Macon Counties, Missouri, the Company is
the owner of approximately 44 acres in fee simple, (having sold
4 acres of surface land in 1995, approximately 88 acres of
surface land in 1997, approximately 196 acres of surface land in
1998, and approximately 26 acres of surface land in 1999, and
approximately 3 acres of surface land in year 2000) and of the
minerals underlying 6,147 acres.  Substantially all of the mineral
ownership is described in the conveyances from which it arose as
"coal" or "coal and other minerals."  The properties involved were
acquired by predecessor companies for the principal purpose of
mining coal therefrom, and extensive mining was conducted thereon
by the predecessors.


                                     -13-

<PAGE>


          The Company has previously rented the surface of
portions of its lands in Missouri, largely for agricultural purposes,
under leases of not to exceed one year, but no such leases are in
effect at this time.


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                                      -14-

<PAGE>


  (b)	The Company presently does not participate in any oil and
gas operations.  However, the Company is the owner of certain
properties (fully described above in this Item), part of which are
leased to outside interests for the production of oil and gas.  The
Company receives bonuses, rentals and royalties for the use of
the land and mineral interests leased by it.

ITEM 3.  LEGAL PROCEEDINGS

    (a)  Currently, there are no material pending legal
proceedings, other than ordinary routine litigation incidental
to the business, to which the Company or any of its subsidiaries
is a party or of which any of its property is the subject, and
there are no material proceedings to which any director, officer
of affiliate of the Company, any owner of record or beneficially
of more than five percent of any class of voting securities of the
Company, or any associate of any such director, officer or
security holder is a party adverse to the Company or any of
its subsidiaries or has a material interest adverse to the Company
or any of its subsidiaries.  Further, there are no administrative or
judicial proceedings involving the Company or any of its
subsidiaries arising under any federal, state or local provisions
which have been enacted or adopted regulating the discharge of
materials into the environment or primarily for the purpose of
protecting the environment.

    (b)  There were no such material legal proceedings which were
terminated during the fourth quarter of the fiscal year covered by
this report.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     No matters were submitted during the fourth quarter of the
fiscal year covered by this report to a vote of security holders
through the solicitation of proxies or otherwise.



                                     -15-

<PAGE>


                                 PART  II

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS

    (a)  The common stock of the Company is traded over the
counter.  The approximate number of stockholders as of
March 11, 2002 was 400.  The range of bid and asked quotations
and the dividends paid on such securities for each quarterly
period during the Company's two most recent fiscal years as
required by Item 201 of Regulation S-K is set forth on the
inside back cover of the Annual Report as of December 31, 2001,
furnished to the stockholders of the Company, and attached
as an exhibit hereto, which portion of the Annual Report is
incorporated herein by this reference.

    Cash dividends totaling $0.875 per share were paid in 2001
and 2000.  The Board of Directors had expressed the intentions
early in 2001 to continue paying a $0.25 per share quarterly
dividend if the operating results and financial condition of
the Company continued to justify it.  Subsequently, the
Board expressed a consensus that in subsequent quarters it might
re-evaluate the quarterly dividend policy in light of possible
needs to retain liquidity for potential acquisitions under
consideration and for other possible areas of internal growth.
In the fourth quarter of 2001, the Board declared a dividend for
that quarter of $0.125 per share and explained that since total
year to date earnings for that year were somewhat below total
earnings for the same period of the previous year, due in
substantial part to recent material decreases in energy prices,
and in furtherance of the objective to retain liquidity for
potential acquisitions and other possible areas of internal
growth it would be advisable to reduce the quarterly dividend
payment.  A dividend of $0.10 per share has been declared for
the first quarter of 2002, and no change in quarterly dividend
policy was expressed, and the Board will continue to evaluate
the operating results and financial condition of the Company
and the other objectives expressed in fixing the quarterly
dividend.


                                     -16-

<PAGE>

         There have been no sales of either registered or
unregistered securities by the Company during the past
three years

    (b)  There have been no sales of either registered or
unregistered securities by the Company during the past
three years.

ITEM 6.  SELECTED FINANCIAL DATA

     The information required by this item is set forth under
the caption "SELECTED CONSOLIDATED FINANCIAL DATA" in the
Annual Report as of December 31, 2001, furnished to the stockholders
of the Company, and attached as an exhibit hereto, which
portion of the Annual Report is incorporated herein by this
reference.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

         The information required by this item is set forth under
the caption "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION & RESULTS OF OPERATIONS" in the Annual Report as of
December 31, 2001, furnished to the stockholders of the
Company, and attached as an exhibit hereto, which portion
of the Annual Report is incorporated herein by this reference.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         The information concerning quantitative and qualitative
disclosures concerning market risk required by Item 305 of
Regulation S-K is contained in Management's Discussion and
Analysis of Financial Condition and Results of Operations set
forth in Item 7 above of this report which is incorporated herein
by this reference.

                                     -17-

<PAGE>


ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The consolidated financial statements required by this item are as
follows:

     Consolidated Balance Sheets as of December 31, 2001 and 2000;

     Consolidated Statements of Earnings - Years ended December 31, 2001,
     2000 and 1999;

     Consolidated Statements of Comprehensive Income - Years Ended
     December 31, 2001, 2000 and 1999;

     Consolidated Statements of Stockholders' Equity - Years ended
     December 31, 2001, 2000 and 1999.

     Consolidated Statements of Cash Flows - Years ended
     December 31, 2001, 2000 and 1999;

     Notes to Consolidated Financial Statements

These financial statements are filed as a part of this report,
beginning on page 26 hereof, and areincorporated herein by
this reference.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE

    (a)  The only independent accountant who was engaged during the
Company's two most recent fiscal years or any subsequent interim
period as the principal accountant to audit the Company's financial
statements has not resigned (nor indicated it has declined to stand
for re-election after the completion of the current audit) nor was
dismissed.


                                     -18-

<PAGE>

    (b)   No new independent accountant has been engaged as the
principal accountant to audit the Company's financial
statements during the Company's two most recent fiscal years
or any subsequent interim period.


	                        PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

    The information required by this item is set forth on
pages 4 through 6 of Company's definitive proxy statement
filed with the Securities and Exchange Commission pursuant to
Schedule 14A promulgated under the Securities Exchange Act of
1934 on March 21, 2002, under the caption "ELECTION OF DIRECTORS",
which portion of said definitive proxy statement is incorporated
herein by this reference.

    No disclosure is being made herein of reporting person
delinquencies in response to Item 405 of Securities and Exchange
Commission regulation S-K, and the Company, at the time of
filing of this FORM 10-K, has reviewed the information necessary
to ascertain, and has determined that, Item 405 disclosure is not
expected to be contained in this Part III of FORM 10-K or
incorporated by reference.


                                    -19-

<PAGE>


ITEM 11.  EXECUTIVE COMPENSATION

    The information required by this item is set forth on
page 6 of Company's definitive proxy statement filed with
the Securities and Exchange Commission pursuant to Schedule 14A
promulgated under the Securities Exchange Act of 1934 filed
March 21, 2002, under the caption "ELECTION OF DIRECTORS", which
portion of said definitive proxy statement is incorporated herein
by this reference.

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                                    -20-

<PAGE>

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

    The information required by this item is set forth on
pages 3,4 and 5 of Company's definitive proxy statement
filed with the Securities and Exchange Commission pursuant to
Schedule 14A promulgated under the Securities Exchange Act of 1934,
under the captions "VOTING SECURITIES OUTSTANDING AND VOTING RIGHTS"
and "ELECTION OF DIRECTORS", which portions of said definitive proxy
statement are incorporated herein by this reference.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

    The information required by this item is set forth on
pages 3 through 6 of Company's definitive proxy statement
filed with the Securities and Exchange Commission pursuant to
Schedule 14A promulgated under the Securities Exchange Act of
1934, under the caption "ELECTION OF DIRECTORS," which portion of
said definitive proxy statement is incorporated herein by this
reference.



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                                    -21-

<PAGE>

                         PART IV
ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
ON FORM 8-K

     (a)  The following documents are filed as a part of this Report:

     1.   Independent Auditors' Report

     2.   Consolidated Financial Statements:

             Consolidated Balance Sheets as of December 31, 2001 and 2000

             Consolidated Statements of Earnings - Years ended December 31,
             2001, 2000 and 1999

             Consolidated Statements of Stockholders' Equity - Years ended
             December 31, 2001, 2000 and 1999

             Consolidated Statements of Comprehensive Income - Years ended
             December 31, 2001, 2000 and 1999

             Consolidated Statements of Cash Flows - Years ended December
             31, 2001, 2000 and 1999

             Notes to Consolidated Financial Statements

     3.   Consolidated Financial Statement Schedules:

          All schedules are omitted as none are currently required.

     4.   Exhibits:

          (3) (i) Amended and Restated Certificate of Incorporation
          is incorporated herein by reference to Exhibit (3)(i) to
          the Annual Report on Form 10-K for the Company for the
          fiscal year ended December 31, 2000.


                                     -22-

<PAGE>


          (3)(ii) Bylaws are incorporated herein by reference to
          Exhibit (3)(ii) to the Annual Report on Form 10-K for the
          Company for the fiscal year ended December 31, 2000.

          (10) Material Contracts:

          (i)  Agreement of Settlement and Release dated
          February 29, 2000 is incorporated by reference to
          Exhibit 10(i) to the Annual Report on Form 10-K
          for the Company for the fiscal year ended
          December 31, 1999.

          (iii)(A) Central Coal & Coke Corporation's Directors
          Non-Qualified Stock Option Plan is incorporated
          herein by reference to Exhibit (10)(iii)(A) to the
          Annual Report on Form 10-K for the Company for
          the fiscal year ended December 31, 1994.  This Plan
          was approved by the Company's stockholders
          at the Annual Meeting held April 19, 1995, and is
          discussed in the Definitive Proxy Statement for
          that meeting previously filed with the Commission
          and in the Definitive Proxy Statement for
          the Annual Meeting of Stockholders to be held
          April 18, 2002, previously filed with the Commission.

          (iv) Central Natural Resources, Inc. 2001 Stock
          Incentive Plan approved by the Board of Directors
          February 7, 2001 and approved by the Stockholders
          at the Annual Meeting of Stockholders to
          held April 19, 2001. This Plan is discussed
          in the Definitive Proxy Statement for that meeting
          and was filed with the Commission with that Proxy
          Statement and is incorporated herein by this
          reference.

          (13) Portions of the Annual Report to security
          holders for year ended December 31, 2001 captioned
          "Selected Consolidated Financial Data,"
          "Management's Discussion and Analysis of Financial
          Condition & Results of Operations" and range of bid
          and asked quotations and dividends paid on common stock.

          (21) Subsidiaries of the Company

     (b)  No reports on Form 8-K were filed during the last quarter of the
period covered by this report.


                                     -23-

<PAGE>
                                 SIGNATURES

    Pursuant to the requirements of Sections 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                     CENTRAL NATURAL RESOURCES, INC.
                                     _______________________________
                                                Registrant

                                     By    /s/ Phelps M. Wood
                                         ________________________________
                                         Phelps M. Wood, President

Date: March 22, 2002

                                     -24-

<PAGE>

     Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Registrant in the capacities and on the dates indicated.

                                     By    /s/ Phelps M. Wood
                                         ________________________________
                                         Phelps M. Wood, President
                                         Principal Executive Officer
Date: March 22, 2002


                                     By    /s/ Gary J. Pennington
                                         ________________________________
                                         Gary J. Pennington
                                         General Manager, Principal
                                         Financial Officer, and
Date: March 22, 2002                     Principal Accounting Officer


                                     By    /s/ Bruce L. Franke
                                         ________________________________
                                         Bruce L Franke, Director
Date: March 22, 2002


                                     By    /s/ Ray A. Infantino
                                         ________________________________
                                         Ray A. Infantino, Director
Date: March 22, 2002


                                     By    /s/ Patrick J. Moran
                                         ________________________________
                                         Patrick J. Moran, Director

Date: March 22, 2002


                                     By    /s/ James R. Ukropina
                                         ________________________________
                                         James R. Ukropina, Director
Date: March 22, 2002


                                     By    /s/ Phelps C.Wood
                                         ________________________________
                                         Phelps C. Wood, Director
Date: March 22, 2002


                                     By    /s/ Phelps M. Wood
                                         ________________________________
                                         Phelps M. Wood, Director


                                     -25-


             CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
                            KANSAS CITY, MISSOURI


                              Table of Contents


                                                                         Page

Independent Auditors' Report                                               27

Consolidated Financial Statements:

    Consolidated Balance Sheets as of December 31, 2001 and 2000        28-29

    Consolidated Statements of Earnings - years ended December 31, 2001,
       2000 and 1999                                                       30

    Consolidated Statements of Stockholders' Equity - years ended December
       31, 2001, 2000 and 1999                                             31

    Consolidated Statements of Comprehensive Income - years ended December
       31, 2001, 2000 and 1999                                             32

    Consolidated Statements of Cash Flows - years ended December 31, 2001,
       2000 and 1999                                                       33

    Notes to Consolidated Financial Statements                          34-42

                                     -26-

<PAGE>

                        INDEPENDENT AUDITORS' REPORT


The Board of Directors
Central Natural Resources, Inc. and Subsidiaries:

We have audited the consolidated financial statements of Central Natural
Resources, Inc. and subsidiaries, as listed in the accompanying table of
contents. These consolidated financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion
on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that
we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes 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 Central
Natural Resources, Inc. and subsidiaries as of December 31, 2001 and 2000,
and the results of their operations and their cash flows for each of the
years in the three-year period ended December 31, 2001, in conformity with
accounting principles generally accepted in the United States of America.


                                                       KPMG  LLP

Kansas City, Missouri
January 25, 2002,


                                     -27-

<PAGE>

<TABLE>

CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Consolidated Balance Sheets

December 31, 2001 and 2000

(amounts in unit dollars)
<CAPTION>
ASSETS                                          2001         2000
                                                __________   __________
<S>                                             <C>          <C>
Current assets:
  Cash and cash equivalents                   $  1,285,926    1,748,510
  Accounts receivable                              104,882       22,500
  Securities maturing within one year,
   at amortized cost (note 2)                    3,998,404    3,970,189
  Notes receivable, current                         18,084       16,720
  Deferred income taxes (note 5)                    17,709            0
  Other                                             10,013       10,064
                                                __________   __________
Total current assets                             5,435,018    5,767,983

Equity securities, at fair value (note 2)        1,030,491    1,544,018
Notes receivable, noncurrent                        65,221       83,287
Other investments                                  350,002      100,002
Deferred income taxes (note 5)                      71,494            0

Coal deposits, real estate, equipment
 and leasehold improvements (notes 3 and 4):
  Coal deposits                                  1,602,882    1,602,882
  Mineral rights                                    39,988       39,988
  Surface land                                      25,562       25,581
  Equipment and leasehold improvements                   0        1,303
                                                __________   __________
                                                 1,668,432    1,669,754
  Less accumulated depletion, depreciation
   and amortization                                581,498      580,541
     Net coal deposits, real estate,            __________   __________
      equipment and leasehold improvements       1,086,934    1,089,213
                                                __________   __________
     Total assets                             $  8,039,160    8,584,503
</TABLE>

                                     -28-

<PAGE>

<TABLE>

CENTRAL NATURAL RESOURCES, INC. SUBSIDIARIES
KANSAS CITY, MISSOURI

Consolidated Balance Sheets

December 31, 2001 and 2000

(amounts in unit dollars)
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY            2001         2000
                                                _________    _________
<S>                                             <C>          <C>
Current liabilities:
  Accounts payable and accrued expenses              4,838       10,946
  Deferred income-advance oil lease bonus           47,353            0
  Federal and state income taxes                    46,112       62,525
                                                __________   __________
Total current liabilities                           98,303       73,471

Deferred income taxes (note 5)                           0      149,993

Stockholders' equity:
  Preferred stock of $1 par value; 100,000
   shares authorized; no shares issued                   0            0
  Common stock of $1 par value; 2,500,000 shares
   authorized; 503,924 shares
   issued in 2001 and 2000                         503,924      503,924
  Retained earnings                              7,445,022    7,639,660
  Accumulated other comprehensive income (loss),
   net of deferred taxes of $(4,356) in 2001
   and $117,091 in 2000                             (8,089)     217,455
                                                __________   __________
Total stockholders' equity                       7,940,857    8,361,039

Commitments and contingencies (notes 3,6 and 9)
                                                __________   __________
Total liabilities and stockholders' equity    $  8,039,160    8,584,503
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>

                                     -29-

<PAGE>
<TABLE>

CENTRAL NATURAL RESOURCES,INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Consolidated Statements of Earnings

Years ended December 31, 2001, 2000 and 1999


(amounts in unit dollars)
<CAPTION>
                                           2001      2000      1999
                                           _________ _________ _________
<S>                                        <C>       <C>       <C>
Operating revenue:
  Coal royalties (note 3)                $    90,800    94,628    97,122
  Oil and gas royalties                      626,441   592,229   395,262
  Oil and other mineral lease rentals
   and bonuses                                51,858    54,632   123,491
                                           _________ _________ _________
    Total operating revenue                  769,099   741,489   615,875

General and administrative
   expenses                                  513,121   522,082   572,096

    Operating income                         255,978   219,407    43,779

Nonoperating income:
  Investment income (note 2)                  85,124 1,063,379   826,885
  Gain on sales of real estate                 1,106     3,385    43,489
  Other                                        5,048     5,700     3,166
                                           _________ _________ _________
    Total nonoperating income                 91,278 1,072,464   873,540

    Earnings before
      income taxes                           347,256 1,291,871   917,319

Income taxes (note 5)                        100,960   435,290   266,309
                                           _________ _________ _________

    Net Earnings                         $   246,296  856,581   651,010


Earnings per share - basic and diluted   $      0.49     1.58      0.92

Weighted average number of shares of
 common stock outstanding - basic
 and diluted                                 503,924  543,528   709,470

<FN>
See accompanying notes to consolidated financial statements.
</TABLE>

                                     -30-

<PAGE>
<TABLE>

CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Consolidated Statements of Stockholders' Equity

Years ended December 31, 2001, 2000 and 1999


(amounts in unit dollars)
<CAPTION>


                                                     Accumulated
                                                        other
                Common Additional Retained  Treasury comprehensive
                stock   capital   earnings  stock      income    Total
                _______ _________ _________ _________  ________  __________
<S>                <C>          <C>         <C>        <C>       <C>

Balance,
 December
  31, 1998    $ 753,376 1,631,200 9,215,231  (617,632)   288,816 11,270,991


Net earnings          0         0   651,010         0          0    651,010
Cash dividends
 ($0.63 per
 share)               0         0  (442,998)        0          0   (442,998)
Purchase of
 6,424 shares
 of common
 stock for
 treasury             0         0         0   (98,534)         0    (98,534)
Net unrealized
 appreciation
 on investments
 available-for-
 sale                 0         0         0         0    415,130    415,130
                _______ _________ _________  ________   ________  _________
Balance,
 December
  31, 1999      753,376 1,631,200 9,423,243  (716,166)   703,946  11,795,599

Net earnings          0         0   856,581         0          0    856,581
Cash dividends
 ($.88 per
 share)               0         0  (442,753)        0          0   (442,753)
Purchase of
 205,642 shares
 of common
 stock for
 treasury             0         0         0(3,422,085)         0 (3,422,085)
Proceeds from
 option exercised
 on 4,000 shares      0         0         0    60,188          0     60,188
Net unrealized
 depreciation
 on investments
 available-for-
 sale                 0         0         0         0   (486,491)  (486,491)
Cancellation of
 249,452 shares
 of common
 stock for
 treasury     (249,452)(1,631,200)(2,197,411)4,078,063         0          0
               ________ __________ __________  ________   _______  ________
Balance,
 December
  31, 2000      503,924         0  7,639,660         0   217,455  8,361,039

Net earnings          0         0    246,296         0         0    246,296
Cash dividends
 ($0.88 per
 share)               0         0   (440,934)        0         0   (440,934)
Net unrealized
 depreciation
 on investments
 available-for-
 sale                 0         0          0         0   (255,544) (225,544)
                _______  _________  __________ ________   ________  ________
Balance,
 December
  31, 2001    $ 503,924         0   7,445,022        0     (8,089) 7,940,857

<FN>
See accompanying notes to consolidated financial statements.
</TABLE>

                                     -31-

<PAGE>
<TABLE>

CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Consolidated Statements of Comprehensive Income

Years ended December 31, 2001, 2000 and 1999


(amounts in unit dollars)
<CAPTION>
                                   2001         2000         1999
                                   ___________  ___________  ___________
<S>                                <C>          <C>          <C>

Net earnings                   $       246,296      856,581      651,010
                                   ___________  ___________  ___________

Other comprehensive income:
 Realized gains and unrealized
  appreciation (depreciation)
  on investments                      (209,118)     (76,857)   1,011,444
 Income taxes                           73,191       26,900     (354,006)

       Realized gains and
  unrealized (depreciation) on
  investments, net                    (135,927)     (49,957)     657,438
                                   ___________  ___________  ___________


Less:
 Realized investment(gains)
   losses included in net
   earnings                           (137,873)    (671,590)    (372,782)
 Income taxes                           48,256      235,056      130,474
                                   ____________  ___________  ___________

                                       (89,617)    (436,534)    (242,308)
                                   ____________  ___________  ___________

                                      (225,544)    (486,491)     415,130
                                   ____________  ___________  ___________


    Comprehensive income        $       20,752      370,090    1,066,140


<FN>
See accompanying notes to consolidated financial statements.
</TABLE>

                                     -32-

<PAGE>
<TABLE>

CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Consolidated Statements of Cash Flows

Years ended December 31, 2001, 2000 and 1999


(amounts in unit dollars)
<CAPTION>
                                   2001         2000         1999
                                   ___________  ___________  ___________
<S>                                <C>          <C>          <C>
Cash flows from operating
 activities:
  Net earnings                   $     246,296      856,581      651,010

  Adjustments to reconcile net
   earnings to net cash provided by
   (used in)operating activities:
    Depletion, depreciation
     and amortization                    2,260        2,316        2,339
    Gain on sales of real estate        (1,106)      (3,385)     (43,489)
    Gain on sales of equity
     securities                       (137,873)    (671,590)    (372,782)
    Impairment charge on
     equity securities                 274,296            0            0
    Amortization of premiums and
     discounts of securities, net     (163,417)    (277,727)    (375,264)
    Deferred income taxes             (117,749)       3,505       (3,499)
    Changes in assets and
     liabilities:
      Accounts receivables and
       other assets                    (82,331)      19,779      (25,625)
      Accounts payable and accrued
       expenses                         (6,108)     (15,116)          95
      Deferred oil lease bonus          47,353            0      (97,357)
      Federal and state income
       taxes                           (16,413)      20,514       74,516

                                   ___________  ___________  ___________
 Net cash provided by
  (used in)operating
    activities                         45,208       (65,123)    (190,056)

Cash flows from investing
 activities:
  Proceeds from note receivable         16,702       15,402       12,465
  Proceeds from matured/called
   investment debt securities       20,000,000   26,972,217   30,500,000
  Purchases of investment debt
   securities                      (19,864,798) (23,194,798) (30,120,627)
  Proceeds from sales of land            1,125        3,424       44,000
  Purchases of equity securities      (478,972)  (1,314,348)    (188,578)
  Proceeds from sales of equity
   securities                          509,085    1,342,367      771,357
  Purchases of other investments      (250,000)    (100,002)           0
                                   ___________  ___________  ___________
Net cash provided by (used in)
 investing activities                  (66,858)   3,724,262    1,018,617
                                   ___________  ___________  ___________

Cash flows from financing
 Activities:
  Dividends paid                      (440,934)    (442,753)    (442,998)
  Purchase of common stock for
   treasury                                  0   (3,422,085)     (98,534)
  Proceeds from exercised options            0       60,188            0
                                   ___________  ___________  ___________
   Net cash used in financing
    activities                        (440,934)  (3,804,650)    (541,532)
                                   ___________  ___________  ___________

   Net increase (decrease) in cash
    and cash equivalents              (462,584)    (142,511)     287,029

Cash and cash equivalents,
 beginning of year                   1,748,510    1,894,021    1,606,992
                                   ___________  ___________  ___________
Cash and cash equivalents,
 end of year                     $   1,258,926    1,748,510    1,894,021

Income taxes paid during year    $     235,630      375,700      229,440

<FN>
See accompanying notes to consolidated financial statements.
</TABLE>

                                     -33-

<PAGE>

CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Notes to Consolidated Financial Statements

December 31, 2001, 2000 and 1999

(1)  Summary of Significant Accounting Policies

     Basis of Consolidation

     The accompanying consolidated financial statements include
     the accounts of Central Natural Resources, Inc. (the Company)
     and its two wholly owned subsidiaries. All significant intercompany
     accounts and transactions have been eliminated in consolidation.

     Cash and Cash Equivalents

     Cash and cash equivalents consist of demand deposit accounts and a
     money market deposit account. For purposes of the consolidated
     statements of cash flows, the Company considers all highly liquid
     debt instruments with original maturities of three months or less
     to be cash equivalents.

     Investment Securities

     Investments in debt securities are classified as held-to-maturity
     securities, which are carried at amortized cost. Investment in
     marketable equity securities are classified as available-for-sale
     securities, which are carried at fair value, with unrealized
     gains and losses excluded from earnings and reported in other
     comprehensive income.

     A decline in the market value of any available-for-sale or
     held-to-maturity security below cost that is deemed to be other
     than temporary results in a reduction in carrying amount to fair
     value. The impairment is charged to earnings and a new cost basis
     for the security is established. Other than temporary impairment
     is analyzed quarterly on an individual security basis
     based on the length of time and the extent to which market
     value has been less than cost, the financial condition and any
     specific events which effect the issuer, and the Company's intent
     and ability to hold the security. Other than temporary impairment
     is measured based on the individual security's quoted market price.

     Premiums and discounts are amortized or accreted over the life of
     the related held-to-maturity security as an adjustment to yield
     using the effective interest method. Dividend and interest income
     are recognized when earned. Realized gains and losses for securities
     classified as available-for-sale are included in net earnings and
     are derived using the specific identification method for determining
     the cost of securities sold.

     Purchases and sales of securities are recorded on a trade-date
     basis. Accounts receivable at December 31, 2001 includes $82,382
     due from a broker for securities sold.

     Coal Deposits, Real Estate, Equipment, and Leasehold Improvements

     Coal deposits, mineral rights, surface land, and equipment are
     stated at cost. Maintenance and repairs are charged to expense
     as incurred. Renewals and betterments which extend the useful
     life of the asset are capitalized.


                                     -34-

<PAGE>

CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Notes to Consolidated Financial Statements

December 31, 2001, 2000, and 1999

    Depreciation, Depletion, and Amortization

    Equipment and leasehold improvements are depreciated/amortized
    using the straight-line method over their estimated useful lives
    or lease terms, which range from five to seven years.

    Depletion of coal deposits is computed at the rate of $0.025 per
    ton of coal produced or purchased, which approximates depletion
    computed on a wasting-asset basis.

    Coal, Oil, and Gas Income

    Coal royalties are based on a percentage of the production of land
    leased from the Company or, in the case of no production, the
    minimum annual royalty (see note 3). Oil and gas royalties are based
    on a percentage of the production on land leased from the Company.
    Oil and other mineral lease rentals and bonuses are derived from the
    leasing of land and mineral rights prior to production.

    Oil lease bonuses which relate to future periods are deferred and
    recognized as income over the related future periods
    (generally one year).

    Income Taxes

    The Company and its subsidiaries file a consolidated federal
    income tax return.

    Deferred tax assets and liabilities are recognized for the
    future tax consequences attributable to differences between the
    consolidated financial statement carrying amounts of existing
    assets and liabilities and their respective tax bases. Deferred
    tax assets and liabilities are measured using enacted tax rates
    expected to apply to taxable income in the years in which those
    temporary differences are expected to be recovered or settled. The
    effect on deferred tax assets and liabilities for subsequent changes
    in tax rates is recognized in income in the period that includes the
    tax rate change.

    Stock Option Plan

    The Company applies the intrinsic value-based method of accounting
    prescribed by Accounting Principles Board (APB) Opinion No. 25,
    Accounting for Stock Issued to Employees, and related interpretations
    in accounting for its fixed plan stock options. As such, compensation
    expense would be recorded on the date of grant only if the then current
    market price of the underlying stock exceeded the exercise price.
    Statement of Financial Accounting Standards (SFAS) No. 123, Accounting
    for Stock-Based Compensation, established accounting and disclosure
    requirements using a fair value-based method of accounting for
    stock-based employee compensation plans. As allowed by SFAS No. 123,
    the Company has elected to continue to apply the intrinsic
    value-based method of accounting described above, and has adopted
    the disclosure requirements of SFAS No. 123.


                                     -35-

<PAGE>

CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Notes to Consolidated Financial Statements

December 31, 2001, 2000, and 1999

    Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of

    Long-lived assets are reviewed for impairment whenever events or
    changes in circumstances indicate that the carrying amount of
    an asset may not be recoverable. Recoverability of assets to be
    held and used is measured by a comparison of the carrying amount
    of the asset to future undiscounted net cash flows expected to be
    generated by the asset. If such assets are considered to be
    impaired, the impairment recognized is measured by the amount by
    which the carrying amount exceeds the fair value. Assets to be
    disposed of are reported at the lower of the carrying amount or
    fair value less costs to sell.

    On October 3, 2001, the Financial Accounting Standards Board issued
    Statement of Financial Accounting Standards (SFAS) No. 144,
    Accounting for the Impairment or Disposal of Long-Lived Assets,
    which addresses financial accounting and reporting for the impairment
    or disposal of long-lived assets. While this statement supersedes
    SFAS No. 121, Accounting for Impairment of Long-Lived Assets and for
    Long-Lived Assets to Be Disposed Of, it retains many of the fundamental
    provisions of that statement.

    This statement is effective for fiscal years beginning after
    December 15, 2001, except in certain circumstances. The Company is
    required to adopt SFAS No. 144 on January 1, 2002. The Company is
    currently reviewing what impact the provisions of this statement will
    have, if any, on its financial position and results of operations. It
    is anticipated that the adoption of this standard will not have a
    significant impact on the Company's operations.

    Earnings and Dividends Per Share

    Effective December 31, 2000, the authorized number of shares were
    increased to a total of 2,600,000 shares-2,500,000 shares of common
    stock of $1.00 par value, and 100,000 shares of preferred stock of
    $1.00 par value.

    The preferred stock authorization does not explicitly dictate
    the dividend amounts or preferences, liquidation preferences, voting
    rights, participation features, or other characteristics typical of
    preferred stock. This authorization is referred to as a blank check
    preferred, which at a later date the board of directors can approve
    the issuance of and, at that time, determine the specific
    characteristics of the preferred stock.

    Basic earnings per share are based on the weighted average number of
    common shares outstanding. Dilutive earnings per share are based on
    the weighted average number of common shares and dilutive common
    equivalent shares outstanding during the year.

    Stock options are the only common stock equivalents, however, their
    effect was not dilutive in the calculation of earnings per share for
    the years ended December 31, 2001, 2000, and 1999. Dividends per share
    are based on the number of shares outstanding on the dividend dates
    of record.

    Comprehensive Income

    Comprehensive income consists of net income and net unrealized gains
    (losses) on available-for-sale securities and is presented in the
    consolidated statements of comprehensive income.

    Segment Information

    The Company operates in only one segment-energy. The energy segment
    consists of the leasing of real properties and mineral interests in
    the midwestern and southern United States. The Company has no foreign
    revenues. Coal royalties in 2001, 2000, and 1999 were received from
    two customers, with 99%, 95%, and 92% being received from the largest
    customer, respectively. Oil and mineral lease bonuses and rentals were
    received from three, four, and four customers in 2001, 2000, and 1999,
    with 91%, 56%, and 90% being recognized from the largest customer,
    respectively. Oil and gas royalties were received from fifteen,
    fourteen, and twelve customers in 2001, 2000, and 1999, with 55%,
    62%, and 62%, being received from one customer, respectively.

                                     -36-

<PAGE>

CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Notes to Consolidated Financial Statements

December 31, 2001, 2000, and 1999

    Use of Estimates

        Management of the Company has made a number of estimates and
    assumptions relating to the reporting of assets, liabilities,
    revenues, and expenses, and the disclosure of contingent assets
    and liabilities to prepare of contingent assets and liabilities
    to prepare these consolidated financial statements in conformity
    with accounting principles generally accepted in the United States
    of America. Actual results could differ from those estimates.

(2) Investment Securities

    The amortized cost, gross unrealized holding gains, gross
    unrealized holding losses, and fair value for held-to-maturity
    and available-for-sale securities by major security type at
    December 31, 2001 and 2000 are presented below. Substantially
    all equity securities represent common stocks of domestic
    corporations.


<TABLE>
<CAPTION>
                                    Gross       Gross
                                    unrealized  unrealized
                        Amortized   holding     holding     Fair
2001                    cost        gains       losses      value
__________________      __________  __________  __________  __________
<S>                     <C>         <C>         <C>         <C>
Held-to-maturity-
  U. S. government
   agency securities  $ 3,998,404            0        (44)   3,998,360

Available-for-sale-
  Equity securities   $ 1,042,936       52,497    (64,942)   1,030,491
</TABLE>

<TABLE>
<CAPTION>
2000
_________________
<S>                     <C>         <C>         <C>         <C>
Held-to-maturity-
  U. S. government
   agency securities  $ 3,970,189            0     (1,439)   3,968,750

Available-for-sale-
  Equity securities   $ 1,209,470      579,000   (244,452)   1,544,018
</TABLE>

At December 31, 2001 and 2000, all U. S. government agency
securities mature within one year.

The Company recognized impairment charges for declines in
market values of equity securities considered to be other than
temporary of $274,296 during 2001.

During the first quarter of 2000, the Company sold U. S.
government agency securities classified as held-to-maturity to
fund the purchase of Company stock (see note 9). The sales proceeds
of $3,472,217 approximated the securities' amortized cost.

                                     -37-

<PAGE>

CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Notes to Consolidated Financial Statements

December 31, 2001, 2000, and 1999

Investment income consists of the following for each of the years ended
December 31

<TABLE>
<CAPTION>
                                    2001       2000        1999
                                    __________  __________  __________
<S>                                 <C>         <C>         <C>
Interest                           $  213,386     375,156     442,978
Dividends                               8,161      16,633      11,125
Gross gains on sales of equity
 securities                           206,466     773,868     399,578
Gross losses on sales of equity
 securities                           (68,593)   (102,278)    (26,796)
Impairment charge on equity
 securities                          (274,296)          0           0
                                    __________  __________  __________
                                   $   85,124   1,063,379     826,885
</TABLE>


(3) Coal Deposits

    The rights to 14,000 acres of coal deposits totaling approximately
    84,000,000 tons of coal in place (of which from 50% to 90% could
    be expected to be recoverable) are leased under an agreement which
    extends through 2009. The agreement provides for minimum annual
    royalties of $90,000. Coal deposits aggregating approximately
    92,000,000 tons in place with a net carrying value of approximately
    $710,000 at December 31, 2001 are not presently leased or producing
    coal in commercial quantities.

(4) Mineral Rights

    At December 31, 2001 and 2000, the Company owned approximately
    64,000 acres of mineral rights in Missouri, Kansas, Oklahoma, Arkansas,
    Louisiana, and Texas.

(5) Income Taxes

    Total income taxes for the years ended December 31, 2001, 2000,
    and 1999 were allocated as follows:

<TABLE>
<CAPTION>
                                    2001        2000        1999
                                    __________  __________  __________
<S>                                 <C>         <C>         <C>
Operations                          $  100,960     435,290     266,309
Stockholders' equity, for unrealized
 appreciation (depreciation) on
 equity securities                    (121,447)   (261,958)    223,531
                                    __________  __________  __________
                                    $  (20,487)    173,332     489,840
</TABLE>

The components of income tax expense from operations
are as follows:

<TABLE>
<CAPTION>
                                 2001      2000      1999
                                 ________  ________  ________
<S>                              <C>       <C>       <C>
Federal                        $   87,280   376,481   282,434
State                              13,680    58,809   (16,125)
                                 ________  ________  ________
Total                          $  100,960   435,290   266,309
</TABLE>

Total income tax expense for 2001, 2000, and 1999 includes deferred
income tax expense (benefit) of $(117,749), $3,505, and $(3,499),
respectively.


                                     -38-

<PAGE>

CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Notes to Consolidated Financial Statements

December 31, 2001, 2000, and 1999

Income tax expense relating to operations has been provided at
effective rates of 29.1%, 33.7%, and 29.0% for the years ended
December 31, 2001, 2000, and 1999, respectively. The reasons
for the difference between the effective tax rates and the
corporate federal income tax rate of 34.0% are as follows:


<TABLE>
<CAPTION>
                                          2001   2000   1999
                                          _____  _____  _____
<S>                                       <C>    <C>    <C>
Expected statutory tax rate               34.0%  34.0%  34.0%
State income taxes, net of federal
 income tax effect                         2.6    2.9   (1.2)
Depletion                                 (9.6)  (2.5)  (2.3)
Other, net                                 2.1   (0.7)  (1.5)
                                          _____  _____  _____
Effective tax rate                        29.1%  33.7%  29.0%
</TABLE>

The tax effects of temporary differences that give rise to
significant portions of the deferred tax assets and deferred
tax liabilities at December 31, 2001 and 2000 are presented below:

<TABLE>
<CAPTION>
Deferred tax assets:                        2001      2000
                                            ________  ________
<S>                                         <C>       <C>
Impairment charge on equity securities     $ 102,493         0
Write-down of coal deposits                   45,095    45,095
Coal development costs                        31,929    30,699
Deferred income-advance oil lease
 bonus                                        17,709         0
Land sales                                    13,319    12,919
Other                                          6,828     5,095
Unrealized depreciation on available-
 for-sale securities                           4,356         0
                                            ________  ________
                                             221,729    93,808

Less valuation allowance                     (45,095)  (45,095)
                                            ________  ________
Deferred tax assets                          176,634    48,713
                                            ________  ________
</TABLE>
<TABLE>
<CAPTION>
Deferred tax  liabilities:
<S>                                         <C>       <C>
Depletion                                    (87,431)  (81,615)
Unrealized appreciation  on available-
 for-sale securities                               0  (117,091)
                                            ________  ________
Deferred tax liabilities                     (87,431) (198,706)

Net deferred tax asset (liability)        $   89,203  (149,993)
</TABLE>

                                     -39-

<PAGE>

CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Notes to Consolidated Financial Statements

December 31, 2001, 2000, and 1999


(6) Operating Leases

    The Company has a five-year operating lease for its office space
    in Kansas City, Missouri, which became effective January 1, 1999.
    The lease agreement provides for annual rental payments of
    approximately $13,200 through 2003. Rent expense amounted to
    $13,182, $13,182, and $13,155 for the years ended December 31,
    2001, 2000, and 1999, respectively.

(7) Disclosures About Fair Value of Financial Instruments

      Cash, cash equivalents, trade receivables, and trade payables-The
      carrying amount approximates fair value because of the short
      maturity of these financial instruments.

      Debt and equity securities - The fair values of debt and equity
      securities are based on quoted market prices. The fair value of
      debt and equity securities are disclosed in note 2.

(8) Stock Option Plans

    Nonqualified Stock Option Plan

    In April 1995, the Company adopted a nonqualified stock option
    plan (the Plan) pursuant to which the Company's Board of Directors
    may grant stock options to directors in lieu of cash compensation.
    The Plan authorizes grants of options to purchase up to 50,000
    shares of common stock. Stock options are granted with an exercise
    price equal to the stock's fair market value at the date of grant.
    All stock options have a term of ten years and vest and become
    fully exercisable six months after the date of grant. In 2001,
    6,000 nonqualified stock options were granted under this plan.

    Stock Incentive Plan

    In February 2001, the Company adopted a stock incentive plan
    pursuant to which the Company's Board of Directors may issue
    stock awards to key employees and directors of the Company.
    This plan allows for stock options, stock appreciation rights,
    restricted stock, stock bonuses, performance share awards, dividend
    equivalents, or deferred payment rights.

    The maximum number of shares of common stock that may be delivered
    under this plan shall not exceed 75,000 shares. The maximum number of
    shares of common stock that may be delivered pursuant to options
    qualified as incentive stock options granted under this plan is 45,000
    shares. The maximum number of shares of common stock that may be
    delivered to nonemployee directors shall not exceed 20,000 shares.
    The maximum number of shares subject to those options and stock
    appreciation rights that are granted during any calendar year to
    any individual shall be limited to 15,000, and the maximum individual
    limit on the number of shares in the aggregate subject to all awards
    that during any calendar year are granted under this plan shall
    be 25,000. Each of these limits is subject to adjustment as set
    forth in the plan.

    In April 2001, 2,000 incentive stock options were granted under
    this plan. Incentive stock options are granted with an exercise
    price equal to the stock's fair market value at the date of grant.
    All incentive stock options have a term of ten years and shall become
    exercisable in four annual installments.


                                     -40-
<PAGE>


CENTRAL NATURAL RESOURCES, INC. AND SUBSIDIARIES
KANSAS CITY, MISSOURI

Notes to Consolidated Financial Statements

December 31, 2001, 2000, and 1999


A summary of stock option activity, including incentive stock options, during
2001, 2000, and 1999 is as follows:


                                           Year Ended
                       ____________________________________________________
                            2001              2000              1999
                       ________________ _________________ _________________
                               Weighted          Weighted          Weighted
                               average           average           average
                               exercise          exercise          exercise
                      Options  price    Options  price    Options  price

Options outstanding,
 beginning of period   6,000  $17.00     4,000   15.05    20,000   15.18
Granted                8,000   17.00     6,000   17.00         0       0
Exercised                  0       0    (4,000)  15.05         0       0
Forfeited                  0       0         0       0    16,000   15.18
                       _____             _____            ______

Options outstanding,
  end of period       14,000   17.00     6,000   17.00     4,000   15.05

Options exercisable
  end of period       12,000   17.00     6,000   17.00     4,000   15.05

Exercise prices for all options outstanding as of December 31, 2001 were
$17.00.

The per share weighted average fair value of stock options granted during
2001 and 2000 was $1.65 and $1.74, respectively, on the date of grant
using the Black Scholes option-pricing model with the following weighted
average assumptions: 2001-expected dividend yield of 5.26%, expected
volatility of 17.63%, risk-free interest rate of 4.290%, and an expected
life of five years; 2000-expected dividend yield of 6.08%, expected
volatility of 20.07%, risk-free interest rate of 5.75%, and an expected
life of five years; 1999-expected dividend yield of 6.0%, expected
volatility of 15.00%, risk-free interest rate of 5.66%, and an expected
life of five years.

The Company applies APB Opinion No. 25 in accounting for its plan and,
accordingly, no compensation cost has been recognized for its stock
options in the accompanying consolidated financial statements. Had
the Company determined compensation cost based on the fair value at
the grant date for its stock options under SFAS No. 123, the Company's
net earnings and earnings per share would have been reduced to the pro
forma amounts indicated below:

<TABLE>
<CAPTION>
                                  2001        2000        1999
                                  __________  __________  __________
         <S>                      <C>         <C>         <C>
         Net Earnings:
           As reported          $    246,296     856,581     651,010

           Pro forma                 233,196     849,784     646,000

         Earnings per share:
          Basic and diluted
           as reported                  0.49        1.58        0.92

           Pro forma            $       0.46        1.56        0.91
</TABLE>

                                     -41-

(9)  Related Party Transactions

     The Company paid $21,666 in 2001 to a company affiliated
     with one of its directors for its participation in a
     strategic planning project undertaken on behalf of the
     Company. The Company intends to pay an additional $20,834 in
     2002 to the company affiliated with its director in relation
     to this project.

     On March 6, 2000, the Company consummated the resolution of
     litigation and other disputes with a former director and other
     stockholders, which arose in connection with the election of
     directors at the Company's 1999 Annual Meeting, pursuant to
     an Agreement of Settlement and Release executed by all parties,
     including the Company, on February 29, 2000. The terms of the
     settlement included the purchase by the Company of all stock in
     the Company owned by the plaintiffs, totaling 194,462 shares for
     a purchase price of $16.75 per share, or aggregate consideration
     of $3,257,238. The source of the funds used was available liquid
     assets of the Company previously invested in U. S. government
     agency obligations.

(10) Supplementary Quarterly Data (Unaudited)

                                                   2001
                                 ______________________________________
                                  First     Second     Third    Fourth
                                 quarter    quarter   quarter   quarter
                                 _______    _______   _______   _______

          Operating revenue   $  203,528    244,994   176,221   144,356
          Investment Income       79,046     60,066   (64,231)   10,243
          Net earnings            85,677    125,871    17,946    16,802
          Earnings per share
           basis and diluted        0.17       0.25      0.04      0.03
                                 _______    _______   _______   _______


                                                   2000
                                 ______________________________________
                                  First     Second     Third    Fourth
                                 quarter    quarter   quarter   quarter
                                 _______    _______   _______   _______

          Operating revenue   $  151,562    157,717   208,643   223,567
          Investment Income      291,896    142,002   474,621   154,860
          Net earnings           211,216     97,985   353,543   193,837
          Earnings per share
           basis and diluted        0.33       0.19      0.69      0.37
                                 _______    _______   _______   _______

Investment income for 2001 reflects impairment charges in the second,
third, and fourth quarters of $46,088, $66,414, and $161,794, respectively.

                                      -42-