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Exhibit
10.7
 Execution Version
 Asset Purchase Agreement
 between
 Cyprus Creek Land Resources, LLC
 Buyer
 and
 CNX Gas Company LLC
 Seller
 Dated as of April 1, 2007




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TABLE OF CONTENTS
 PageRecitals
    
    
    1Agreements
    
    
    1ARTICLE I.Definitions
    
    
    11.1 Defined Terms
    
    
    11.2 Other Definitions
    
    
    61.3 Rules of Construction
    
    
    7ARTICLE II.Sale and Purchase
    
    
    82.1 Sale and Purchase of Assets
    
    
    82.2 Purchase Price
    
    
    102.3 Assumed and Excluded Liabilities
    
    
    10ARTICLE III.Actions Prior to Closing
    
    
    113.1 Allocated Values; Post-Closing Allocations
    
    
    113.2 Updated Schedules and Exhibits
    
    
    113.3 Taxpayer Identification Numbers
    
    
    113.4 Consents
    
    
    113.5 Asset Due Diligence
    
    
    11ARTICLE IV.Closing
    
    
    124.1 Closing
    
    
    124.2 Buyers Closing Deliveries
    
    
    134.3 Seller Closing Deliveries
    
    
    134.4 Transfer Documents
    
    
    134.5 Other Transfer Documents
    
    
    14ARTICLE V.Transfer Period Covenants
    
    
    145.1 Transfer Period
    
    
    145.2 Further Assurances
    
    
    145.3 Obtaining Consents and Delivery of Notices
    
    
    145.4 Governmental Filings
    
    
    155.5 Recording Fees, Transfer Taxes and Similar Costs
    
    
    15ARTICLE VI.Sellers Representations and Warranties
    
    
    156.1 Organization and Standing
    
    
    156.2 Power
    
    
    166.3 Authorization and Enforceability
    
    
    166.4 Liability for Brokers Fees
    
    
    166.5 Alien Status
    
    
    166.6 Litigation
    
    
    166.7 Orders
    
    
    166.8 Rentals and Royalties
    
    
    16
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Page6.9 No Conflicts
    
    
    166.10 Compliance with Laws
    
    
    176.11 Environmental Conditions
    
    
    176.12 Taxes
    
    
    186.13 Regulatory Approvals
    
    
    186.14 Limited Title Warranty as to Assets
    
    
    186.15 Material Contracts
    
    
    186.16 Employees
    
    
    196.17 No Material Adverse Change
    
    
    196.18 Undisclosed Material Liabilities
    
    
    196.19 Insurance
    
    
    206.20 Intellectual Property
    
    
    206.21 Disclosure
    
    
    206.22 Effectiveness of Representations and Warranties
    
    
    20ARTICLE VII.Buyers Representations and Warranties
    
    
    207.1 Organization and Standing
    
    
    207.2 Power
    
    
    207.3 Authorization and Enforceability
    
    
    207.4 Liability for Brokers Fees
    
    
    217.5 Alien Status
    
    
    217.6 Litigation
    
    
    217.7 Orders
    
    
    217.8 No Conflicts
    
    
    217.9 Regulatory Approvals
    
    
    217.10 Buyer Due Diligence
    
    
    217.11 Disclosure
    
    
    227.12 Effectiveness of Representations and Warranties
    
    
    22ARTICLE VIII.Other Covenants
    
    
    228.1 Certain Affirmative Covenants of Seller
    
    
    228.2 Certain Negative Covenants of Seller
    
    
    238.3 Confidentiality and Publicity
    
    
    238.4 DISCLAIMERS
    
    
    24ARTICLE IX.Conditions Precedent
    
    
    259.1 Conditions to Sellers Obligations
    
    
    259.2 Conditions to Buyers Obligations
    
    
    26ARTICLE X.Termination, Effect of Termination and Specific Performance
    
    
    2710.1 Termination
    
    
    2710.2 Effect of Termination
    
    
    2710.3 Specific Performance
    
    
    27ARTICLE XI.Indemnification
    
    
    2711.1 Indemnification by Buyer
    
    
    2711.2 Indemnification by Seller
    
    
    28
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Page11.3 Procedure for Certain Indemnified Claims
    
    
    2911.4 Determination of Indemnification Amounts and Related Matters
    
    
    2911.5 Time and Manner of Certain Claims
    
    
    2911.6 Other Indemnification
    
    
    3011.7 Exclusivity
    
    
    30ARTICLE XII.Miscellaneous Provisions
    
    
    3012.1 Data and Information Review
    
    
    3012.2 Expenses
    
    
    3112.3 Brokers
    
    
    3112.4 Waivers
    
    
    3112.5 Notices
    
    
    3112.6 Entire Agreement; Prior Representations; Amendments; No Merger
    
    
    3212.7 Jurisdiction
    
    
    3212.8 WAIVER OF JURY TRIAL
    
    
    3312.9 Binding Effect; Benefits
    
    
    3312.10 Headings, Exhibits and Schedules
    
    
    3312.11 Counterparts
    
    
    3312.12 GOVERNING LAW
    
    
    3312.13 Severability
    
    
    3312.14 Third Persons; Joint Ventures
    
    
    3312.15 Construction
    
    
    3412.16 Attorneys Fees
    
    
    3412.17 Risk of Loss
    
    
    3412.18 Tax Consequences
    
    
    3412.19 Commercially Reasonable Efforts
    
    
    3412.20 Time
    
    
    3412.21 Surface Use Agreements
    
    
    3512.22 Rule Against Perpetuities
    
    
    35List of Exhibits and Schedules
    
    
    37
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Asset Purchase Agreement
  Recitals
   Agreements
  ARTICLE I.  Definitions
 Defined Terms
   1




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2




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3




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Schedule 1.1a Schedule 1.1a
     4




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Schedule
2.1(c)(ii)
     Schedule
2.1(c)(ii) Schedule 1.1b
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ad valorem
 Schedule 1.1c
 Schedule 1.1d
  Other Definitions
 TERM
    
    SECTIONAgreement
    
    PreambleAssets
    
    2.1(c)Assumed Liabilities
    
    2.3(a)Buyer
    
    PreambleBuyer Group
    
    3.5(e)
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TERM
    
    SECTIONCap
    
    11.4(a)Closing
    
    4.1Confidential Information
    
    8.3(a)Deed
    
    4.4(a)ERC Rights
    
    2.1(c)(iii)(B)Excluded Assets
    
    2.1(d)Indemnified Losses
    
    3.5(e)Indemnitee
    
    11.3Indemnitor
    
    11.3Litigation Matter
    
    11.3Material Contracts
    
    2.1(c)(ii)Oil and Gas Books and Records
    
    2.1(c)(v)Oil and Gas Interests
    
    2.1(c)(i)Post-Closing Consent
    
    5.3(a)Purchase Price
    
    2.2Reversion
    
    4.4(a)Reviewable Data
    
    12.1Seller Group
    
    3.5(e)Seller Retained Liabilities
    
    2.3(b)Surface Use Agreement
    
    12.21Taking
    
    12.17(b)Transfer Period
    
    5.1
 Rules of Construction
 7




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ARTICLE II.  Sale and Purchase
 Sale and Purchase of Assets
 Sale and Purchase
 Transfer of Beneficial Title
 Assets
 Oil and Gas Interests Exhibit A
 Contracts
 8




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Schedule 2.1(c)(ii)
 ERC Rights and Other Credits
   Other Tax Credits
 Books and Records
 Insurance Claims
 Excluded Assets
 9




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Exhibit A Exhibit A Exhibit A
 Purchase Price
 Assumed and Excluded Liabilities
 Assumed Liabilities
   Seller Retained Liabilities
 10




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ARTICLE III.  Actions Prior to Closing
 Post-Closing Allocations
 Updated Schedules and Exhibits
 Taxpayer Identification Numbers
 Consents
 Asset Due Diligence
  11




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ARTICLE IV.  Closing
 Closing
 12




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Buyers Closing Deliveries
 Purchase Price
 Officers Certificate
 Other
 Seller Closing Deliveries
 Officers Certificate
 FIRPTA Certificate
 Other
 Transfer Documents
 Deed
   13




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Other Transfer Documents
 ARTICLE V.  Transfer Period Covenants
 Transfer Period
 Further Assurances
   Obtaining Consents and Delivery of Notices
  14




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Governmental Filings
   Recording Fees, Transfer Taxes and Similar Costs
 ARTICLE VI.  Sellers Representations and Warranties
  Organization and Standing
 15




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Power
 Authorization and Enforceability
 Liability for Brokers Fees
 Alien Status
 Litigation
 Orders
 Rentals and Royalties
 No Conflicts
   16




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Compliance with Laws
  Schedule
6.10(b)
       Environmental Conditions
  17




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Taxes Schedule 6.12
 Regulatory Approvals
 Limited Title Warranty as to Assets
 Material Contracts Schedule 2.1(c)(ii)
  18




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Employees
 Schedule 6.16
   Schedule 6.16
 No Material Adverse Change
   Undisclosed Material Liabilities Schedule 6.18
 19




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Insurance
 Intellectual Property
 Disclosure
 Effectiveness of Representations and Warranties
 ARTICLE VII.  Buyers Representations and Warranties
  Organization and Standing
 Power
 Authorization and Enforceability
 20




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Liability for Brokers Fees
 Alien Status
 Litigation
 Orders
 No Conflicts
   Regulatory Approvals
 Buyer Due Diligence
 21




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Disclosure
 Effectiveness of Representations and Warranties
 ARTICLE VIII.  Other Covenants
 Certain Affirmative Covenants of Seller
      22




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Certain Negative Covenants of Seller
      Confidentiality and Publicity
   23




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DISCLAIMERS THE PARTIES AGREE THAT, TO THE EXTENT REQUIRED BY APPLICABLE LEGAL
REQUIREMENTS TO BE OPERATIVE, THE
 24




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DISCLAIMERS OF WARRANTIES CONTAINED IN THIS SECTION ARE
CONSPICUOUS DISCLAIMERS FOR THE PURPOSES OF ANY APPLICABLE LEGAL REQUIREMENT, RULE OR ORDER.
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE TRANSFER DOCUMENTS, SELLER MAKES NO, AND
HEREBY EXPRESSLY DISCLAIMS AND NEGATES, REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED,
CONCERNING THE ASSETS.
 ARTICLE IX.  Conditions Precedent
 Conditions to Sellers Obligations
 Accuracy of Representations and Warranties
 Performance of Agreements
 Officers Certificate
 Consents
 Closing Documents
 Legal Proceedings
 25




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Surface Use Agreement
 CONSOL Closing
 Conditions to Buyers Obligations
 Accuracy of Representations and Warranties
 Performance of Agreements
 Officers Certificate
 Consents
 Closing Documents
 Legal Proceedings
 No Material Adverse Change
 26




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Documents and Records
 Surface Use Agreement
 ARTICLE X.  Termination, Effect of Termination and Specific Performance
 Termination
 Effect of Termination
 Specific Performance
 ARTICLE XI.  Indemnification
 Indemnification by Buyer
  27




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Indemnification by Seller
        28




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Procedure for Certain Indemnified Claims
 Determination of Indemnification Amounts and Related Matters
    Time and Manner of Certain Claims
 bona fide
 29




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Other Indemnification
 Exclusivity
 ARTICLE XII.  Miscellaneous Provisions
 Data and Information Review
 30




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Expenses
 Brokers
 Waivers
 Notices
 To Buyer:
    
    Peabody Natural Gas, LLC701 Market StreetSt. Louis, Missouri 63101ATTN: Land DepartmentFax: 314-342-7597Phone: 314-342-3400Copies (which shall not
    
    Peabody Natural Gas, LLCconstitute notice)
    
    14062 Denver West Parkway, Suite 110Lakewood, Colorado 80401ATTN: Collon C. Kennedy, Esq.Fax: 303-271-9049Phone: 303-271-3600
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To Seller:
    
    CNX Gas Company LLC5 Penn Center West, Suite 401Pittsburgh, PA 15276-0102ATTN: General Counsels OfficeFax: 412-200-6762Phone: 412-200-6700Copies (which shall not
    
    CNX Gas Corporationconstitute notice)
    
    5 Penn Center West, Suite 401Pittsburgh, PA 15276-0102ATTN: General Counsels OfficeFax: 412-200-6795Phone: 412-200-6778
  Entire Agreement; Prior Representations; Amendments; No Merger in pari materia
 Jurisdiction
 32




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WAIVER OF JURY TRIAL
 Binding Effect; Benefits
 Headings, Exhibits and Schedules
 Counterparts
 GOVERNING LAW
 Severability
 Third Persons; Joint Ventures
 33




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Construction
 Attorneys Fees
 Risk of Loss
   Tax Consequences
 Commercially Reasonable Efforts
 Time
 34




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Surface Use Agreements
 Rule Against Perpetuities
  35




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SELLER:CNX GAS COMPANY LLCBy:Name:Title:BUYER:CYPRUS CREEK LAND RESOURCES, LLCBy:Name:Title:
 36




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List of Exhibits and Schedules
 EXHIBITS
 No.
    
    DESCRIPTIONA
    
    Oil and Gas Interests
 37




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SCHEDULES
 No.
    
    DESCRIPTION1.1a
    
    Knowledge Persons1.1b
    
    Burdens on Production1.1c
    
    Third Party Consents1.1d
    
    Transfer Approvals2.1(c)(ii)
    
    Material Contracts6.10(b)
    
    Permits and Bonds for the Assets6.12
    
    Taxes Due on the Assets6.16
    
    Labor Agreements and Disputes6.18
    
    Material Liabilities
 38