----

----

| Delaware                                                            |                                                      | 95-0740960                                   |
|---------------------------------------------------------------------|-----------------------------------------------------------|----------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |                                                      | (I.R.S.      Employer Identification Number) |
|                                                                |                                                      |                                         |
| 4      North 4th Street, Richmond, Virginia                         |                                                      | 23219                                        |
| (Address      of principal executive offices)                       |                                                      | (Zip      Code)                              |
|                                                                |                                                      |                                         |
|                                                                | (804)      788-1800                                       |                                         |
|                                                                | (Registrant's      telephone number, including area code) |                                         |

|             Large      accelerated filer [X]                                             | Accelerated      filer [ ]         |
|------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|
|             Non-accelerated      filer [ ] (Do not check if a smaller reporting company) | Smaller      reporting company [ ] |

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| TABLE      OF CONTENTS                                                                                  | PAGE   |
|---------------------------------------------------------------------------------------------------------|--------|
|                                                                                                    |   |
| Part      I:   Financial Information                                                     |   |
|                                                                                                    |   |
| Item      1. Financial Statements                                                                       | 1      |
|                                                                                                    |   |
| Item      2. Management's Discussion and Analysis of Financial Condition and Results      of Operations | 17     |
|                                                                                                    |   |
| Item      3. Quantitative and Qualitative Disclosures About Market    Risk                              | 30     |
|                                                                                                    |   |
| Item      4. Controls and Procedures                                                                    | 30     |
|                                                                                                    |   |
| Part      II:  Other Information                                                              |   |
|                                                                                                    |   |
| Item      1. Legal Proceedings                                                                          | 31     |
|                                                                                                    |   |
| Item      1A. Risk Factors                                                                              | 31     |
|                                                                                                    |   |
| Item      2. Unregistered Sales of Equity Securities and Use of    Proceeds                             | 33     |
|                                                                                                    |   |
| Item      6. Exhibits                                                                                   | 33     |
|                                                                                                    |   |
| Signatures                                                                                              | 34     |

----

| MASSEY      ENERGY COMPANY                                                       |   |
|----------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF INCOME                                 |   |
| (In      Thousands, Except Per Share Amounts)                                    |   |
| UNAUDITED                                                                        |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                             |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|                                                                             |   | September      30, |   |   | September      30, |   |
|                                                                             |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Revenues                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|          Produced coal revenue                                    |   | $ | 666,440 |   |   | $ | 521,887 |   |   | $ | 1,919,976 |   |   | $ | 1,557,792 |   |
|          Freight and handling revenue                             |   |   | 81,068 |   |   |   | 38,385 |   |   |   | 229,570 |   |   |   | 122,138 |   |
|          Purchased coal revenue                                   |   |   | 4,484 |   |   |   | 25,978 |   |   |   | 22,025 |   |   |   | 82,474 |   |
|          Other revenue                                            |   |   | 11,304 |   |   |   | 17,191 |   |   |   | 63,188 |   |   |   | 66,160 |   |
| Total      revenues                                                              |   |   | 763,296 |   |   |   | 603,441 |   |   |   | 2,234,759 |   |   |   | 1,828,564 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs      and expenses                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Cost of produced coal revenue                            |   |   | 500,387 |   |   |   | 432,405 |   |   |   | 1,418,275 |   |   |   | 1,243,912 |   |
|          Freight and handling costs                               |   |   | 81,068 |   |   |   | 38,385 |   |   |   | 229,570 |   |   |   | 122,138 |   |
|          Cost of purchased coal revenue                           |   |   | 4,349 |   |   |   | 22,162 |   |   |   | 19,783 |   |   |   | 71,507 |   |
|          Depreciation, depletion and amortization, applicable to: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of produced coal revenue                                               |   |   | 64,393 |   |   |   | 60,081 |   |   |   | 185,200 |   |   |   | 180,874 |   |
| Selling,      general and administrative                                         |   |   | 817 |   |   |   | 748 |   |   |   | 2,569 |   |   |   | 2,352 |   |
|           Selling, general and administrative                |   |   | 2,820 |   |   |   | 12,470 |   |   |   | 62,815 |   |   |   | 50,824 |   |
|           Other expense                                      |   |   | 1,049 |   |   |   | 1,847 |   |   |   | 2,457 |   |   |   | 5,929 |   |
|           Litigation charge                                  |   |   | 5,835 |   |   |   | - |   |   |   | 251,111 |   |   |   | - |   |
|           Loss on refinancing                                |   |   | 9,088 |   |   |   | - |   |   |   | 9,088 |   |   |   | - |   |
| Total      costs and expenses                                                    |   |   | 669,806 |   |   |   | 568,098 |   |   |   | 2,180,868 |   |   |   | 1,677,536 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before interest and taxes                                            |   |   | 93,490 |   |   |   | 35,343 |   |   |   | 53,891 |   |   |   | 151,028 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                             |   |   | 4,742 |   |   |   | 6,585 |   |   |   | 13,549 |   |   |   | 18,814 |   |
| Interest      expense                                                            |   |   | (26,913 | ) |   |   | (21,450 | ) |   |   | (68,676 | ) |   |   | (64,517 | ) |
| Loss      on short-term investment                                               |   |   | (6,537 | ) |   |   | - |   |   |   | (6,537 | ) |   |   | - |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before taxes                                                  |   |   | 64,782 |   |   |   | 20,478 |   |   |   | (7,773 | ) |   |   | 105,325 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax (expense) benefit                                                |   |   | (10,756 | ) |   |   | 930 |   |   |   | 10,395 |   |   |   | (16,372 | ) |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                  |   | $ | 54,026 |   |   | $ | 21,408 |   |   | $ | 2,622 |   |   | $ | 88,953 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per share                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Basic                                                    |   | $ | 0.65 |   |   | $ | 0.27 |   |   | $ | 0.03 |   |   | $ | 1.11 |   |
|          Diluted                                                  |   | $ | 0.64 |   |   | $ | 0.27 |   |   | $ | 0.03 |   |   | $ | 1.10 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      used to calculate Net income per share                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Basic                                                    |   |   | 82,623 |   |   |   | 79,997 |   |   |   | 80,851 |   |   |   | 80,399 |   |
|          Diluted                                                  |   |   | 83,959 |   |   |   | 80,478 |   |   |   | 82,070 |   |   |   | 80,870 |   |
|                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      per share                                                         |   | $ | 0.05 |   |   | $ | 0.04 |   |   | $ | 0.15 |   |   | $ | 0.12 |   |

----

|                                            | MASSEY      ENERGY COMPANY                                                                                                      |   |
|-------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                                            | CONDENSED      CONSOLIDATED BALANCE SHEETS                                                                                      |   |
|                                            | (In      Thousands, Except Share Amounts)                                                                                       |   |
|                                            | UNAUDITED                                                                                                                       |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |
|                                            |                                                                                                                            |   | September      30, |   |   | December      31, |   |
|                                            |                                                                                                                            |   | 2008 |   |   |   | 2007* |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |   |
| ASSETS                                          |                                                                                                                            |   |   |   |   |   |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |   |
| Current      Assets                             |                                                                                                                            |   |   |   |   |   |   |
|                                            | Cash      and cash equivalents                                                                                                  |   | $ | 666,332 |   |   | $ | 365,220 |   |
|                                            | Short-term      investment                                                                                                      |   |   | 211,363 |   |   |   | - |   |
|                                            | Trade      and other accounts receivable, less allowance of $417 and      $444,                                                 |   |   |   |   |   |   |   |   |
|                                            |      September      30, 2008 and December 31, 2007                                                     |   |   | 279,797 |   |   |   | 156,572 |   |
|                                            | Inventories                                                                                                                     |   |   | 201,895 |   |   |   | 183,360 |   |
|                                            | Income      tax receivable                                                                                                      |   |   | 1,323 |   |   |   | 16,302 |   |
|                                            | Other      current assets                                                                                                       |   |   | 162,833 |   |   |   | 165,940 |   |
|                                            |         Total      current assets                                                       |   |   | 1,523,543 |   |   |   | 887,394 |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |   |   |
| Net      Property, Plant and Equipment          |                                                                                                                            |   | 2,175,729 |   |   |   | 1,793,920 |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |   |   |
| Other      Noncurrent Assets                    |                                                                                                                            |   |   |   |   |   |   |   |
|                                            | Pension      assets                                                                                                             |   |   | 46,862 |   |   |   | 47,323 |   |
|                                            | Other                                                                                                                           |   |   | 140,248 |   |   |   | 132,034 |   |
|                                            |         Total      other noncurrent assets                                              |   |   | 187,110 |   |   |   | 179,357 |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |   |   |
|                                            |         Total      assets                                                               |   | $ | 3,886,382 |   |   | $ | 2,860,671 |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY |                                                                                                                            |   |   |   |   |   |   |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |   |   |
| Current      Liabilities                        |                                                                                                                            |   |   |   |   |   |   |   |
|                                            | Accounts      payable, principally trade and bank overdrafts                                                                    |   | $ | 201,660 |   |   | $ | 148,206 |   |
|                                            | Current      portion of debt                                                                                                    |   |   | 1,931 |   |   |   | 1,875 |   |
|                                            | Payroll      and employee benefits                                                                                              |   |   | 70,554 |   |   |   | 46,512 |   |
|                                            | Other      current liabilities                                                                                                  |   |   | 452,465 |   |   |   | 171,269 |   |
|                                            |        Total      current liabilities                                                        |   |   | 726,610 |   |   |   | 367,862 |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |   |   |
| Noncurrent      Liabilities                     |                                                                                                                            |   |   |   |   |   |   |   |
|                                            | Long-term      debt                                                                                                             |   |   | 1,482,976 |   |   |   | 1,102,672 |   |
|                                            | Deferred      income taxes                                                                                                      |   |   | 137,801 |   |   |   | 154,705 |   |
|                                            | Other      noncurrent liabilities                                                                                               |   |   | 476,882 |   |   |   | 451,428 |   |
|                                            |         Total      noncurrent liabilities                                               |   |   | 2,097,659 |   |   |   | 1,708,805 |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |   |   |
|                                            |         Total      liabilities                                                          |   |   | 2,824,269 |   |   |   | 2,076,667 |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |   |   |
| Shareholders’      Equity                 |                                                                                                                            |   |   |   |   |   |   |   |
|                                            | Capital      stock                                                                                                              |   |   |   |   |   |   |   |   |
|                                            |        Preferred      – authorized 20,000,000 shares without par value; none    issued |   |   | - |   |   |   | - |   |
|                                            |        Common      – authorized 150,000,000 shares of $0.625 par value;issued          |   |   |   |   |   |   |   |   |
|                                            |        85,135,343      and 82,818,578 shares at September 30, 2008 and                       |   |   |   |   |   |   |   |   |
|                                            |        December      31, 2007, respectively                                                  |   |   | 53,199 |   |   |   | 51,743 |   |
|                                            | Treasury      stock, 2,874,800 shares at cost, at December 31, 2007                                                             |   |   | - |   |   |   | (79,986 | ) |
|                                            | Additional      capital                                                                                                         |   |   | 445,156 |   |   |   | 237,684 |   |
|                                            | Retained      earnings                                                                                                          |   |   | 591,973 |   |   |   | 601,587 |   |
|                                            | Other      comprehensive loss                                                                                                   |   |   | (28,215 | ) |   |   | (27,024 | ) |
|                                            |         Total      shareholders’ equity                                           |   |   | 1,062,113 |   |   |   | 784,004 |   |
|                                            |                                                                                                                            |   |   |   |   |   |   |   |   |
|                                            |         Total      liabilities and shareholders’ equity                           |   | $ | 3,886,382 |   |   | $ | 2,860,671 |   |

----

|                                                                               |                                                              | MASSEY ENERGY COMPANY                                 |                                                  |
|------------------------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
|                                                                               |                                                              | CONDENSED      CONSOLIDATED STATEMENT OF CASH FLOWS   |                                                  |
|                                                                               |                                                              | (In      Thousands)                                   |                                                  |
|                                                                               |                                                              | UNAUDITED                                             |                                                  |
|                                                                               |                                                              |                                                  |                                                  |   |   |   |   |   |   |
|                                                                               |                                                              |                                                  |                                                  |   | Nine      Months Ended September 30, |   |
|                                                                               |                                                              |                                                  |                                                  |   | 2008 |   |   | 2007 |   |
|                                                                               |                                                              |                                                  |                                                  |   |   |   |   |   |   |
|                                                                               |                                                              |                                                  |                                                  |   |   |   |   |   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                          |                                                              |                                                  |                                                  |   |   |   |
| Net      income                                                                    |                                                              | $                                                     | 2,622                                                 |   |   | $ | 88,953 |   |
| Adjustments      to reconcile Net income to Cash provided by operating activities: |                                                              |                                                  |                                                  |   |   |   |   |   |
|                                                                               | Depreciation,      depletion and amortization                     |                                                  | 187,769                                               |   |   |   | 183,226 |   |
|                                                                               | Share-based      compensation expense                             |                                                  |                                                  | 8,590 |   |   |   | 8,419 |   |
|                                                                               | Deferred      income taxes                                        |                                                  |                                                  | (11,336 | ) |   |   | (7,512 | ) |
|                                                                               | Gain      on disposal of assets                                   |                                                  |                                                  | (1,699 | ) |   |   | (11,910 | ) |
|                                                                               | Gain      on reserve exchanges                                    |                                                  |                                                  | (32,449 | ) |   |   | (10,284 | ) |
|                                                                               | Unrealized      loss on short-term investment                     |                                                  |                                                  | 6,537 |   |   |   | - |   |
|                                                                               | Loss      on debt restructuring                                   |                                                  |                                                  | 15,178 |   |   |   | - |   |
|                                                                               | Asset      retirement obligations accretion                       |                                                  |                                                  | 8,883 |   |   |   | 8,813 |   |
|                                                                               | Changes      in operating assets and liabilities:                 |                                                  |                                                  |   |   |   |   |   |   |
|                                                                               |                                                              |                                                  | Increase      in accounts receivable                  |   |   | (124,484 | ) |   |   | (19,923 | ) |
|                                                                               |                                                              |                                                  | (Increase)      decrease in inventories               |   |   | (18,535 | ) |   |   | 4,326 |   |
|                                                                               |                                                              |                                                  | Decrease      in other current assets                 |   |   | 1,173 |   |   |   | 17,998 |   |
|                                                                               |                                                              |                                                  | Decrease      (increase) in pension and other assets  |   |   | 2,993 |   |   |   | (378 | ) |
|                                                                               |                                                              |                                                  | Increase      in accounts payable and bank overdrafts |   |   | 53,454 |   |   |   | 35,037 |   |
|                                                                               |                                                              |                                                  | Increase      (decrease) in accrued income taxes      |   |   | 14,979 |   |   |   | (21,047 | ) |
|                                                                               |                                                              |                                                  | Increase      in other accrued liabilities            |   |   | 304,988 |   |   |   | 22,603 |   |
|                                                                               |                                                              |                                                  | Increase      in other noncurrent liabilities         |   |   | 10,987 |   |   |   | 17,404 |   |
|                                                                               |                                                              |                                                  | Asset      retirement obligations payments            |   |   | (3,617 | ) |   |   | (8,312 | ) |
|                                                                               |                                                              | Cash      provided by operating activities            |                                                  |   | 426,033 |   |   |   | 307,413 |   |
|                                                                               |                                                              |                                                  |                                                  |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                          |                                                              |                                                  |                                                  |   |   |   |   |
|                                                                               | Capital      expenditures                                         |                                                  |                                                  | (532,020 | ) |   |   | (196,687 | ) |
|                                                                               | Reclassification      of cash equivalent to short-term investment |                                                  |                                                  | (217,900 | ) |   |   | - |   |
|                                                                               | Proceeds      from sale of assets                                 |                                                  |                                                  | 6,783 |   |   |   | 26,520 |   |
|                                                                               |                                                              | Cash      utilized by investing activities            |                                                  |   | (743,137 | ) |   |   | (170,167 | ) |
|                                                                               |                                                              |                                                  |                                                  |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                          |                                                              |                                                  |                                                  |   |   |   |   |   |
|                                                                               | Repayments      of capital lease obligations                      |                                                  |                                                  | (1,459 | ) |   |   | (2,028 | ) |
|                                                                               | Proceeds      from issuance of 3.25% convertible senior notes     |                                                  |                                                  | 674,136 |   |   |   | - |   |
|                                                                               | Tender      payment for 6.625% senior notes                       |                                                  |                                                  | (322,139 | ) |   |   | - |   |
|                                                                               | Issuance      of common stock                                     |                                                  | 258,338                                               |   |   |   | - |   |
|                                                                               | Stock      repurchase                                             |                                                  |                                                  | - |   |   |   | (29,991 | ) |
|                                                                               | Cash      dividends paid                                          |                                                  |                                                  | (11,986 | ) |   |   | (9,672 | ) |
|                                                                               | Proceeds      from stock options exercised                        |                                                  |                                                  | 16,519 |   |   |   | 1,337 |   |
|                                                                               | Income      tax benefit from stock option exercises               |                                                  |                                                  | 4,807 |   |   |   | 526 |   |
|                                                                               |                                                              | Cash      provided (utilized) by financing activities |                                                  |   | 618,216 |   |   |   | (39,828 | ) |
|                                                                               |                                                              |                                                  |                                                  |   |   |   |   |   |   |   |   |
| Increase      in cash and cash equivalents                                         |                                                              |                                                  | 301,112                                               |   |   |   | 97,418 |   |
| Cash      and cash equivalents at beginning of period                              |                                                              |                                                  | 365,220                                               |   |   |   | 239,245 |   |
|                                                                               |                                                              |                                                  |                                                  |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                    |                                                              | $                                                     | 666,332                                               |   |   | $ | 336,663 |   |

----

| (1)   | Significant      Accounting Policies |
|-----------------|--------------------------------------|

----

|                         |   | September      30,  |    |   | December      31, |   |
|------------------------------|--------|---------------------|---------|--------|-------------------|--------|
|                         |   | 2008                |    |   | 2007              |   |
|                         |   | (In      Thousands) |    |
| Saleable      coal           |   | $                   | 116,098 |   |              | $      | 120,343 |   |
| Raw      coal                |   |                | 22,707  |   |              |   | 11,471 |   |
| Subtotal      coal inventory |   |                | 138,805 |   |              |   | 131,814 |   |
| Supplies      inventory      |   |                | 63,090  |   |              |   | 51,546 |   |
| Total      inventory         |   | $                   | 201,895 |   |              | $      | 183,360 |   |

|                                                          |   | September      30,  |    |   | December      31, |   |
|---------------------------------------------------------------|--------|---------------------|---------|--------|-------------------|--------|
|                                                          |   | 2008                |    |   | 2007              |   |
|                                                          |   | (In      Thousands) |    |
| Longwall      panel costs                                     |   | $                   | 15,915  |   |              | $      | 18,029 |   |
| Deposits                                                      |   |                | 118,827 |   |              |   | 109,200 |   |
| Other                                                         |   |                | 28,091  |   |              |   | 38,711 |   |
|      Total      other current assets |   | $                   | 162,833 |   |              | $      | 165,940 |   |

|                                                           |   | September      30,  |       |   | December      31, |   |
|----------------------------------------------------------------|--------|---------------------|------------|--------|-------------------|--------|
|                                                           |   | 2008                |       |   | 2007              |   |
|                                                           |   | (In      Thousands) |       |
| Property,      plant and equipment, at cost                    |   | $                   | 4,188,583  |   |              | $      | 3,649,853 |   |
| Accumulated      depreciation, depletion and amortization      |   |                | (2,012,854 | )      |              |   | (1,855,933 | ) |
|     Net      property, plant and equipment |   | $                   | 2,175,729  |   |              | $      | 1,793,920 |   |

----

|                                                                                  |   | September      30,  |      |   | December      31, |   |
|---------------------------------------------------------------------------------------|--------|---------------------|-----------|--------|-------------------|--------|
|                                                                                  |   | 2008                |      |   | 2007              |   |
|                                                                                  |   | (In      Thousands) |      |
| 6.875%      senior notes due 2013, net of discount                                    |   | $                   | 755,877   |   |              | $      | 755,401 |   |
| 3.25%      convertible senior notes due 2015                                          |   |                | 690,000   |   |              |   | - |   |
| 6.625%      senior notes due 2010                                                     |   |                | 21,949    |   |              |   | 335,000 |   |
| 2.25%      convertible senior notes due 2024                                          |   |                | 9,647     |   |              |   | 9,647 |   |
| 4.75%      convertible senior notes due 2023                                          |   |                | 70        |   |              |   | 730 |   |
| Capital      lease obligations                                                        |   |                | 7,364     |   |              |   | 8,823 |   |
| Fair      value hedge adjustment                                                      |   |                | -         |   |              |   | (5,054 | ) |
|           Total      debt           |   |                | 1,484,907 |   |              |   | 1,104,547 |   |
| Amounts      due within one year                                                      |   |                | (1,931    | )      |              |   | (1,875 | ) |
|           Total      long-term debt |   | $                   | 1,482,976 |   |              | $      | 1,102,672 |   |

----

| ·   | during      any calendar quarter, if the closing sale price of our shares of Common      Stock for each of 20 or more trading days in a period of 30 consecutive      trading days ending on the last trading day of the immediately preceding      calendar quarter exceeds 130% of the conversion price in effect on the      last trading day of the immediately preceding calendar      quarter; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | during      the five consecutive business days immediately after any five consecutive      trading day period (the “note measurement period”) in which the average      trading price per $1,000 principal amount of 3.25% Notes was equal to or      less than 97% of the average conversion value of the 3.25% Notes during      the note measurement period; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | if      we make certain distributions on our shares of Common Stock or engage in      certain transactions; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | at      any time from, and including, February 1, 2015 until the close of business      on the second business day immediately preceding August 1,      2015. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (6) | Pension      Expense |
|-----|----------------------|

|                                    |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|-----------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                    |   | September      30,      |   |   | September      30,     |   |
|                                    |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                    |   | (In      Thousands)     |   |
| Service      cost                       |   | $                       | 2,182  |   |                   | $      | 2,429 |   |   | $ | 6,510 |   |   | $ | 7,287 |   |
| Interest      cost                      |   |                    | 3,855  |   |                   |   | 3,756 |   |   |   | 11,911 |   |   |   | 11,268 |   |
| Expected      return on plan assets     |   |                    | (5,713 | )      |                   |   | (5,607 | ) |   |   | (17,139 | ) |   |   | (16,820 | ) |
| Recognized      (gain) loss             |   |                    | (54    | )      |                   |   | 1,017 |   |   |   | 578 |   |   |   | 3,051 |   |
| Amortization      of prior service cost |   |                    | 11     |   |                   |   | 10 |   |   |   | 31 |   |   |   | 30 |   |
| Net      periodic pension expense       |   | $                       | 281    |   |                   | $      | 1,605 |   |   | $ | 1,891 |   |   | $ | 4,816 |   |

|                                                                  |   | September      30,  |    |   | December      31, |   |
|-----------------------------------------------------------------------|--------|---------------------|---------|--------|-------------------|--------|
|                                                                  |   | 2008                |    |   | 2007              |   |
|                                                                  |   | (In      Thousands) |    |
| Reclamation                                                           |   | $                   | 153,853 |   |              | $      | 142,213 |   |
| Workers'      compensation and black lung                             |   |                | 96,210  |   |              |   | 90,702 |   |
| Other      postretirement benefits                                    |   |                | 144,667 |   |              |   | 141,087 |   |
| Other                                                                 |   |                | 82,152  |   |              |   | 77,426 |   |
|      Total      other noncurrent liabilities |   | $                   | 476,882 |   |              | $      | 451,428 |   |

|                                                                               |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                                               |   | September      30,      |   |   | September      30,     |   |
|                                                                               |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                                                               |   | (In      Thousands)     |   |
| Self-insured      black lung benefits:                                             |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Service      cost                                                                  |   | $                       | 547    |   |                   | $      | 624 |   |   | $ | 1,640 |   |   | $ | 1,871 |   |
| Interest      cost                                                                 |   |                    | 848    |   |                   |   | 783 |   |   |   | 2,543 |   |   |   | 2,350 |   |
| Amortization      of actuarial gain                                                |   |                    | (872   | )      |                   |   | (781 | ) |   |   | (2,617 | ) |   |   | (2,343 | ) |
|    Subtotal      black lung benefits expense                        |   |                    | 523    |   |                   |   | 626 |   |   |   | 1,566 |   |   |   | 1,878 |   |
| Other      workers' compensation benefits                                          |   |                    | 7,812  |   |                   |   | 8,802 |   |   |   | 24,360 |   |   |   | 23,219 |   |
|    Total      black lung and workers' compensation benefits expense |   | $                       | 8,335  |   |                   | $      | 9,428 |   |   | $ | 25,926 |   |   | $ | 25,097 |   |

----

|                                          |   | Three      Months Ended |   |   | Nine      Months Ended |   |
|-----------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                          |   | September      30,      |   |   | September      30,     |   |
|                                          |   | 2008                    |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                          |   | (In      Thousands)     |   |
| Service      cost                             |   | $                       | 801    |   |                   | $      | 917 |   |   | $ | 2,403 |   |   | $ | 2,751 |   |
| Interest      cost                            |   |                    | 2,211  |   |                   |   | 2,117 |   |   |   | 6,634 |   |   |   | 6,350 |   |
| Recognized      loss                          |   |                    | 203    |   |                   |   | 466 |   |   |   | 610 |   |   |   | 1,398 |   |
| Amortization      of prior service credit     |   |                    | (188   | )      |                   |   | (188 | ) |   |   | (563 | ) |   |   | (563 | ) |
| Net      periodic postretirement benefit cost |   | $                       | 3,027  |   |                   | $      | 3,312 |   |   | $ | 9,084 |   |   | $ | 9,936 |   |

----

|                                                            |   | Three      Months Ended                       |   |   | Nine      Months Ended |   |
|-----------------------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------|--------|
|                                                            |   | September      30,                            |   |   | September      30,     |   |
|                                                            |   | 2008                                          |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                                            |   | (In      Thousands, Except Per Share Amounts) |   |
| Numerator:                                                      |   |                                          |   |   |                   |   |   |   |   |   |   |   |
| Net      income - numerator for basic                           |   | $                                             | 54,026 |   |                   | $      | 21,408 |   |   | $ | 2,622 |   |   | $ | 88,953 |   |
| Effect      of convertible notes                                |   |                                          | 45     |   |                   |   | 50 |   |   |   | 143 |   |   |   | 150 |   |
| Adjusted      net income - numerator for diluted                |   | $                                             | 54,071 |   |                   | $      | 21,458 |   |   | $ | 2,765 |   |   | $ | 89,103 |   |
|                                                            |   |                                          |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                    |   |                                          |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares - denominator for basic            |   |                                          | 82,623 |   |                   |   | 79,997 |   |   |   | 80,851 |   |   |   | 80,399 |   |
| Effect      of stock options/restricted stock                   |   |                                          | 1,045  |   |                   |   | 157 |   |   |   | 907 |   |   |   | 147 |   |
| Effect      of convertible notes                                |   |                                          | 291    |   |                   |   | 324 |   |   |   | 312 |   |   |   | 324 |   |
| Adjusted      weighted average shares - denominator for diluted |   |                                          | 83,959 |   |                   |   | 80,478 |   |   |   | 82,070 |   |   |   | 80,870 |   |
|                                                            |   |                                          |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Income      per share:                                          |   |                                          |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                           |   | $                                             | 0.65   |   |                   | $      | 0.27 |   |   | $ | 0.03 |   |   | $ | 1.11 |   |
| Diluted                                                         |   | $                                             | 0.64   |   |                   | $      | 0.27 |   |   | $ | 0.03 |   |   | $ | 1.10 |   |

|   | • | Level      1 – Inputs are unadjusted, quoted prices in active markets for identical      assets or liabilities at the measurementdate. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Level      2 – Inputs (other than quoted prices included in Level 1) are either      directly or indirectly observable for the assets or liability through      correlation with market data at the measurement date and for the duration      of the instrument’s anticipatedlife. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Level      3 – Inputs reflect management’s best estimate of what market participants      would use in pricing the asset or liability at the measurement      date.  Consideration is given to the risk inherent in the      valuation technique and the risk inherent in the inputs to the      model. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | September      30, 2008 |    |
|------------------------------|--------|-------------------------|---------|
|                         |   | (In      Thousands)     |    |
|                         |   | Level      1            |    |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Fixed      income securities |   | $                       | 13,039  |   |   | $ | - |   |   | $ | - |   |   | $ | 13,039 |   |
| Money      market funds      |   |                    | 761,351 |   |   |   | - |   |   |   | - |   |   |   | 761,351 |   |
| Short-term      investment   |   |                    | -       |   |   |   | - |   |   |   | 211,363 |   |   |   | 211,363 |   |
| Total      securities        |   | $                       | 774,390 |   |   | $ | - |   |   | $ | 211,363 |   |   | $ | 985,753 |   |

|                                                                                                                                                                        |   | Short-term                |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|---------|
|                                                                                                                                                                        |   | Investments               |    |
|                                                                                                                                                                        |   |  (In      Thousands) |    |
| Balance      at December 31, 2007                                                                                                                                           |   | $                         | -       |   |
| Transfers      to Level 3                                                                                                                                                   |   |                      | 217,900 |   |
| Change      in fair value included in earnings                                                                                                                              |   |                      | (6,537  | ) |
|                                                                                                                                                                        |   |                      |    |   |
| Balance      at September 30, 2008                                                                                                                                          |   | $                         | 211,363 |   |
|                                                                                                                                                                        |   |                      |    |   |
| Losses      included in earnings attributable to the change in unrealized losses          relating to      assets still held at September      30, 2008 |   | $                         | (6,537  | ) |

----

----

----

----

----

----

|   | Item      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS      OF OPERATIONS |
|--------|---------------------------------------------------------------------------------------------------------|

| (i)    |   | our      cash flows, results of operation or financial condition;                                                                                                                   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)   |   | the      successful completion of acquisition, disposition or financing      transactions and the effect thereof on our business;                                                   |
| (iii)  |   | governmental      policies, laws, regulatory actions and court decisions affecting the coal      industry or our customers’ coal usage;                                       |
| (iv)   |   | legal      and administrative proceedings, settlements, investigations and claims and      the availability of insurance coverage related thereto;                                  |
| (v)    |   | weather      conditions or catastrophic weather-related damage;                                                                                                                     |
| (vi)   |   | our      production capabilities to meet market expectations and customer      requirements;                                                                                        |
| (vii)  |   | our      ability to obtain coal from brokerage sources or contract miners in      accordance with their contracts;                                                                  |
| (viii) |   | our      ability to obtain and renew permits necessary for our existing and planned      operations in a timely manner;                                                             |
| (ix)   |   | the      cost and availability of transportation for our producedcoal;                                                                                                              |
| (x)    |   | our      ability to expand our mining capacity;                                                                                                                                     |
| (xi)   |   | our      ability to manage production costs, including labor costs;                                                                                                                 |
| (xii)  |   | adjustments      made in price, volume or terms to existing coal supply      agreements;                                                                                            |
| (xiii) |   | the      worldwide market demand for coal, electricity and steel;                                                                                                                   |
| (xiv)  |   | environmental      concerns related to coal mining and combustion and the cost and perceived      benefits of alternative sources of energy such as natural gas and nuclear      energy; |

----

| (xv)     |   | competition      among coal and other energy producers, in the United States and      internationally;                               |
|----------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
| (xvi)    |   | our      ability to timely obtain necessary supplies and equipment;                                                                  |
| (xvii)   |   | our      reliance upon and relationships with our customers and      suppliers;                                                      |
| (xviii)  |   | the      creditworthiness of our customers and suppliers;                                                                            |
| (xix)    |   | our      ability to attract, train and retain a skilled workforce to meet      replacement or expansion needs;                       |
| (xx)     |   | our      assumptions and projections concerning economically recoverable coal      reserve estimates;                                |
| (xxi)    |   | our      failure to enter into anticipated new contracts;                                                                            |
| (xxii)   |   | future      economic or capital market conditions;                                                                                   |
| (xxiii)  |   | foreign      currency fluctuations;                                                                                                  |
| (xxiv)   |   | the      availability and costs of credit, surety bonds and letters of credit that      we require;                                  |
| (xxv)    |   | the      lack of insurance against all potential operating risks;                                                                    |
| (xxvi)   |   | our      assumptions and projections regarding pension and other post-retirement      benefit liabilities;                           |
| (xxvii)  |   | our      interpretation and application of accounting literature related to mining      specific issues; and                         |
| (xxviii) |   | the      successful implementation of our strategic plans and objectives for future      operations and expansion or consolidation.  |

----

----

|                                                |   | Three      Months Ended September 30,      |
|-----------------------------------------------------|--------|--------------------------------------------|
|                                                |   | 2008                                       |   | 2007 |
|                                                |   |  $                                    |   | per      ton |   |  $ |   | per      ton |
|                                                |   | (In      Millions, Except Per Ton Amounts) |
| Total      costs and expenses                       |   | $                                          | 669.8 |   |   |   | $ | 568.1 |   |   |
| Less:      Freight and handling costs               |   |                                       | 81.1 |   |   |   |   | 38.4 |   |   |
| Less:      Cost of purchased coal revenue           |   |                                       | 4.3 |   |   |   |   | 22.2 |   |   |
| Less:      Depreciation, depletion and amortization |   |                                       | 65.2 |   |   |   |   | 60.8 |   |   |
| Less:      Other expense                            |   |                                       | 1.1 |   |   |   |   | 1.8 |   |   |
| Less:      Litigation charge                        |   |                                       | 5.8 |   |   |   |   | - |   |   |
| Less:      Loss on      refinancing                 |   |                                       | 9.1 |   |   |   |   | - |   |   |
| Average      cash cost                              |   | $                                          | 503.2 |   |  $48.77 |   | $ | 444.9 |   |  $43.26 |

----

|                              |   | Three      Months Ended |    |   |   |   |    |       |   |
|-----------------------------------|--------|-------------------------|---------|--------|--------|--------|---------|------------|--------|
|                              |   | September      30,      |    |   |   |   |    |       |   |
|                              |   |                    |    |   |   |   |    | Increase   |   |   | %      Increase |   |
|                              |   | 2008                    |    |   | 2007   |   |    | (Decrease) |   |   | (Decrease) |   |
|                              |   | (In      Thousands)     |    |   |   |   |
| Revenues                          |   |                    |    |   |   |   |    |       |   |   |   |   |
| Produced      coal revenue        |   | $                       | 666,440 |   |   | $      | 521,887 |       |   | $ | 144,553 |   |   |   | 28 | % |
| Freight      and handling revenue |   |                    | 81,068  |   |   |   | 38,385  |       |   |   | 42,683 |   |   |   | 111 | % |
| Purchased      coal revenue       |   |                    | 4,484   |   |   |   | 25,978  |       |   |   | (21,494 | ) |   |   | (83 | )% |
| Other      revenue                |   |                    | 11,304  |   |   |   | 17,191  |       |   |   | (5,887 | ) |   |   | (34 | )% |
| Total      revenues               |   | $                       | 763,296 |   |   | $      | 603,441 |       |   | $ | 159,855 |   |   |   | 26 | % |

|                                                |   | Three      Months Ended                    |   |   |   |   |   |                     |   |
|-----------------------------------------------------|--------|--------------------------------------------|--------|--------|--------|--------|--------|--------------------------|--------|
|                                                |   | September      30,                         |   |   |   |   |   |                     |   |
|                                                |   | 2008                                       |   |   | 2007   |   |   | Increase      (Decrease) |   |   | %      Increase (Decrease) |   |
|                                                |   | (In      millions, except per ton amounts) |   |   |   |   |
| Produced tons      sold:                            |   |                                       |   |   |   |   |   |                     |   |   |   |   |
|    Utility                           |   |                                       | 6.7    |   |   |   | 7.2    |                     |   |   | (0.5 | ) |   |   | (7 | )% |
|    Metallurgical                     |   |                                       | 2.5    |   |   |   | 2.0    |                     |   |   | 0.5 |   |   |   | 25 | % |
|    Industrial                        |   |                                       | 1.1    |   |   |   | 1.1    |                     |   |   | - |   |   |   | 0 | % |
|      Total                 |   |                                       | 10.3   |   |   |   | 10.3   |                     |   |   | - |   |   |   | 0 | % |
|                                                |   |                                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
| Produced coal revenue      per ton sold:            |   |                                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
|    Utility                           |   | $                                          | 51.90  |   |   | $      | 45.27  |                     |   | $ | 6.63 |   |   |   | 15 | % |
|    Metallurgical                     |   |                                       | 97.47  |   |   |   | 71.19  |                     |   |   | 26.28 |   |   |   | 37 | % |
|    Industrial                        |   |                                       | 65.89  |   |   |   | 49.58  |                     |   |   | 16.31 |   |   |   | 33 | % |
|      Weighted      average |   | $                                          | 64.59  |   |   | $      | 50.75  |                     |   | $ | 13.84 |   |   |   | 27 | % |

----

|                                                          |   | Three      Months Ended |    |   |   |   |    |       |   |
|---------------------------------------------------------------|--------|-------------------------|---------|--------|--------|--------|---------|------------|--------|
|                                                          |   | September      30,      |    |   |   |   |    |       |   |
|                                                          |   |                    |    |   |   |   |    | Increase   |   |   | %      Increase |   |
|                                                          |   | 2008                    |    |   | 2007   |   |    | (Decrease) |   |   | (Decrease) |   |
|                                                          |   | (In      Thousands)     |    |   |   |   |
| Costs      and expenses                                       |   |                    |    |   |   |   |    |       |   |   |   |   |
| Cost      of produced coal revenue                            |   | $                       | 500,387 |   |   | $      | 432,405 |       |   | $ | 67,982 |   |   |   | 16 | % |
| Freight      and handling costs                               |   |                    | 81,068  |   |   |   | 38,385  |       |   |   | 42,683 |   |   |   | 111 | % |
| Cost      of purchased coal revenue                           |   |                    | 4,349   |   |   |   | 22,162  |       |   |   | (17,813 | ) |   |   | (80 | )% |
| Depreciation,      depletion and amortization, applicable to: |   |                    |    |   |   |   |    |       |   |   |   |   |   |
| Cost      of produced coal revenue                            |   |                    | 64,393  |   |   |   | 60,081  |       |   |   | 4,312 |   |   |   | 7 | % |
| Selling,      general and administrative                      |   |                    | 817     |   |   |   | 748     |       |   |   | 69 |   |   |   | 9 | % |
| Selling,      general and administrative                      |   |                    | 2,820   |   |   |   | 12,470  |       |   |   | (9,650 | ) |   |   | (77 | )% |
| Other      expense                                            |   |                    | 1,049   |   |   |   | 1,847   |       |   |   | (798 | ) |   |   | (43 | )% |
| Litigation      charge                                        |   |                    | 5,835   |   |   |   | -       |       |   |   | 5,835 |   |   |   | 100 | % |
| Loss      on refinancing                                      |   |                    | 9,088   |   |   |   | -       |       |   |   | 9,088 |   |   |   | 100 | % |
| Total      costs and expenses                                 |   | $                       | 669,806 |   |   | $      | 568,098 |       |   | $ | 101,708 |   |   |   | 18 | % |

----

|                              |   | Nine      Months Ended |      |   |   |   |      |       |   |
|-----------------------------------|--------|------------------------|-----------|--------|--------|--------|-----------|------------|--------|
|                              |   | September      30,     |      |   |   |   |      |       |   |
|                              |   |                   |      |   |   |   |      | Increase   |   |   | %      Increase |   |
|                              |   | 2008                   |      |   | 2007   |   |      | (Decrease) |   |   | (Decrease) |   |
|                              |   | (In      Thousands)    |      |   |   |   |
| Revenues                          |   |                   |      |   |   |   |      |       |   |   |   |   |
| Produced      coal revenue        |   | $                      | 1,919,976 |   |   | $      | 1,557,792 |       |   | $ | 362,184 |   |   |   | 23 | % |
| Freight      and handling revenue |   |                   | 229,570   |   |   |   | 122,138   |       |   |   | 107,432 |   |   |   | 88 | % |
| Purchased      coal revenue       |   |                   | 22,025    |   |   |   | 82,474    |       |   |   | (60,449 | ) |   |   | (73 | )% |
| Other      revenue                |   |                   | 63,188    |   |   |   | 66,160    |       |   |   | (2,972 | ) |   |   | (4 | )% |
| Total      revenues               |   | $                      | 2,234,759 |   |   | $      | 1,828,564 |       |   | $ | 406,195 |   |   |   | 22 | % |

|                                                |   | Nine      Months Ended                     |   |   |   |   |   |                     |   |
|-----------------------------------------------------|--------|--------------------------------------------|--------|--------|--------|--------|--------|--------------------------|--------|
|                                                |   | September      30,                         |   |   |   |   |   |                     |   |
|                                                |   | 2008                                       |   |   | 2007   |   |   | Increase      (Decrease) |   |   | %      Increase (Decrease) |   |
|                                                |   | (In      millions, except per ton amounts) |   |   |   |   |
| Produced tons      sold:                            |   |                                       |   |   |   |   |   |                     |   |   |   |   |
|    Utility                           |   |                                       | 19.9   |   |   |   | 20.9   |                     |   |   | (1.0 | ) |   |   | (5 | )% |
|    Metallurgical                     |   |                                       | 7.8    |   |   |   | 6.5    |                     |   |   | 1.3 |   |   |   | 20 | % |
|    Industrial                        |   |                                       | 3.1    |   |   |   | 2.9    |                     |   |   | 0.2 |   |   |   | 7 | % |
|      Total                 |   |                                       | 30.8   |   |   |   | 30.3   |                     |   |   | 0.5 |   |   |   | 2 | % |
|                                                |   |                                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
| Produced coal revenue per ton      sold:            |   |                                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |
|    Utility                           |   | $                                          | 49.07  |   |   | $      | 45.04  |                     |   | $ | 4.03 |   |   |   | 9 | % |
|    Metallurgical                     |   |                                       | 97.25  |   |   |   | 72.40  |                     |   |   | 24.85 |   |   |   | 34 | % |
|    Industrial                        |   |                                       | 60.41  |   |   |   | 50.95  |                     |   |   | 9.46 |   |   |   | 19 | % |
|      Weighted      average |   | $                                          | 62.43  |   |   | $      | 51.46  |                     |   | $ | 10.97 |   |   |   | 21 | % |

----

|                                                          |   | Nine      Months Ended |      |   |   |   |      |       |   |
|---------------------------------------------------------------|--------|------------------------|-----------|--------|--------|--------|-----------|------------|--------|
|                                                          |   | September      30,     |      |   |   |   |      |       |   |
|                                                          |   |                   |      |   |   |   |      | Increase   |   |   | %      Increase |   |
|                                                          |   | 2008                   |      |   | 2007   |   |      | (Decrease) |   |   | (Decrease) |   |
|                                                          |   | (In      Thousands)    |      |   |   |   |
| Costs      and expenses                                       |   |                   |      |   |   |   |      |       |   |   |   |   |
| Cost      of produced coal revenue                            |   | $                      | 1,418,275 |   |   | $      | 1,243,912 |       |   | $ | 174,363 |   |   |   | 14 | % |
| Freight      and handling costs                               |   |                   | 229,570   |   |   |   | 122,138   |       |   |   | 107,432 |   |   |   | 88 | % |
| Cost      of purchased coal revenue                           |   |                   | 19,783    |   |   |   | 71,507    |       |   |   | (51,724 | ) |   |   | (72 | )% |
| Depreciation,      depletion and amortization, applicable to: |   |                   |      |   |   |   |      |       |   |   |   |   |   |
| Cost      of produced coal revenue                            |   |                   | 185,200   |   |   |   | 180,874   |       |   |   | 4,326 |   |   |   | 2 | % |
| Selling,      general and administrative                      |   |                   | 2,569     |   |   |   | 2,352     |       |   |   | 217 |   |   |   | 9 | % |
| Selling,      general and administrative                      |   |                   | 62,815    |   |   |   | 50,824    |       |   |   | 11,991 |   |   |   | 24 | % |
| Other      expense                                            |   |                   | 2,457     |   |   |   | 5,929     |       |   |   | (3,472 | ) |   |   | (59 | )% |
| Litigation      charge                                        |   |                   | 251,111   |   |   |   | -         |       |   |   | 251,111 |   |   |   | 100 | % |
| Loss      on refinancing                                      |   |                   | 9,088     |   |   |   | -         |       |   |   | 9,088 |   |   |   | 100 | % |
| Total      costs and expenses                                 |   | $                      | 2,180,868 |   |   | $      | 1,677,536 |       |   | $ | 503,332 |   |   |   | 30 | % |

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|                                                                                  |   | September      30,  |      |   | December      31, |   |
|---------------------------------------------------------------------------------------|--------|---------------------|-----------|--------|-------------------|--------|
|                                                                                  |   | 2008                |      |   | 2007              |   |
|                                                                                  |   | (In      Thousands) |      |
| 6.875%      senior notes due 2013, net of discount                                    |   | $                   | 755,877   |   |              | $      | 755,401 |   |
| 3.25%      convertible senior notes due 2015                                          |   |                | 690,000   |   |              |   | - |   |
| 6.625%      senior notes due 2010                                                     |   |                | 21,949    |   |              |   | 335,000 |   |
| 2.25%      convertible senior notes due 2024                                          |   |                | 9,647     |   |              |   | 9,647 |   |
| 4.75%      convertible senior notes due 2023                                          |   |                | 70        |   |              |   | 730 |   |
| Capital      lease obligations                                                        |   |                | 7,364     |   |              |   | 8,823 |   |
| Fair      value hedge adjustment                                                      |   |                | -         |   |              |   | (5,054 | ) |
|           Total      debt           |   |                | 1,484,907 |   |              |   | 1,104,547 |   |
| Amounts      due within one year                                                      |   |                | (1,931    | )      |              |   | (1,875 | ) |
|           Total      long-term debt |   | $                   | 1,482,976 |   |              | $      | 1,102,672 |   |

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| ·   | during      any calendar quarter, if the closing sale price of our shares of Common      Stock for each of 20 or more trading days in a period of 30 consecutive      trading days ending on the last trading day of the immediately preceding      calendar quarter exceeds 130% of the conversion price in effect on the      last trading day of the immediately preceding calendar      quarter; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | during      the five consecutive business days immediately after any five consecutive      trading day period (the “note measurement period”) in which the average      trading price per $1,000 principal amount of 3.25% Notes was equal to or      less than 97% of the average conversion value of the 3.25% Notes during      the note measurement period; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | if      we make certain distributions on our shares of Common Stock or engage in      certain transactions; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | at      any time from, and including, February 1, 2015 until the close of business      on the second business day immediately preceding August 1,      2015. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Payments      Due by Years |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Total                      |      |   | Within      1 Year |   |   | 2-3      Years |   |   | 4-5      Years |   |   | After      5 Years |   |
|                                                                         (In      Thousands) |   |
| Long-term      debt (1)                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                          | 1,918,231 |   |   | $ | 76,350 |   |   | $ | 173,339 |   |   | $ | 149,791 |   |   | $ | 1,518,751 |   |

|  | (1) |   | Long-term      debt obligations reflect the future interest and principal payments of our      fixed rate senior unsecured notes outstanding as of September 30, 2008.      See Note 5 to the Notes to Condensed Consolidated Financial Statements for      additional information. |
|--|-----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | • | the      accuracy of our assumptions of the recoverability of the coal reserves to      be mined; |
|--------------|---------|---------------------------------------------------------------------------------------------------|

|   | • | the      availability of skilled labor to staff the new and expanded      mines; |
|--------|---------|----------------------------------------------------------------------------------|

|   | • | the      availability and cost of the capital equipment required for each of the      new and expanded mines; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------|

|   | • | unanticipated      changes in business, industry or general economic conditions that affect      the assumptions underlying our rationale for expanding our      production. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 1A.Risk Factors

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| Period                                |   | Total      Number of Shares Purchased                    |   |   | Average      Price Paid per Share |   |   | Total      Number of Shares Purchased as Part of Publicly Announced Plans or Programs      (1) |   |   | Maximum      Number of Shares that May Yet Be Purchased Under the Plan |   |   |
|---------------------------------------|--------|----------------------------------------------------------|--------|--------|-----------------------------------|--------|--------|------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------|--------|--------|
|                                  |   | (In      Thousands, Except Average Price Paid Per Share) |   |   |
| July      1 through July 31           |   |                                                     | -      |   |                              |   | -      |                                                                                           |   |   | -                                                                      |   |   |   | - |   |   |
| August      1 through August 31       |   |                                                     | -      |   |                              |   | -      |                                                                                           |   |   | -                                                                      |   |   |   | - |   |   |
| September      1 through September 30 |   |                                                     | -      |   |                              |   | -      |                                                                                           |   |   | -                                                                      |   |   |   | - |   |   |
| Total                                 |   |                                                     | -      |   |                              |   |   |                                                                                           |   |   | -                                                                      |   |   |   | 18,189,693 |   | (2) |

|   |   |                                                                                                                                                                                                                                                                                                                           |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)    |   | The      Repurchase Program was authorized by the Board of Directors and announced      on November 14, 2005 for an aggregate amount not to exceed $500 million.      The Repurchase Program does not require us to acquire any specific number      of shares, may be terminated at any time and has no expiration      date. |

| (2) |   | Calculated      using $420 million that may yet be purchased under the Repurchase Program      and $23.09, the closing price of Common Stock as reported on the New York      Stock Exchange on October 31, 2008. |
|-----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Fourth      Amendment to Amended and Restated Credit Agreement [filed as Exhibit 10.1      to Massey’s current report on Form 8-K filed October 16, 2008 and      incorporated by reference].  |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1 | Certification      of Chief Executive Officer, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                            |
| 31.2 | Certification      of Chief Financial Officer, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                            |
| 32.1 | Certification      of Chief Executive Officer 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 Chief Financial Officer pursuant to 18 U.S.C., Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002.                                            |

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|                                         | MASSEY ENERGY COMPANY                                                                                                                                                                                                  |
|----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                         | (Registrant)                                                                                                                                                                                                           |
| Date:  November      7,  2008 |                                                                                                                                                                                                                   |
|                                         | /s/ E. B.      Tolbert                                 |
|                                         | E.      B. Tolbert,                                                                                                                                                                                                    |
|                                         | Vice      President and                                                                                                                                                                                                |
|                                         | Chief      Financial Officer                                                                                                                                                                                           |
|                                         |                                                                                                                                                                                                                   |
|                                         | /s/ D. W.      Owings                                  |
|                                         | D.      W. Owings,                                                                                                                                                                                                     |
|                                         | Controller                                                                                                                                                                                                             |

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